| Wine
sales showed more modest growth, which reflected expansion
in the global wine market.
Philippe Casteja, the fWine Export Federation's president,
said the industry should not rely on champagne, the
drink of choice for celebrations around the world, to
prop up sales.
"Spirits and champagne remain two undeniable
locomotives for our results," he said. "This
bright spot should not make us forget the need to pursue
the necessary reforms to rediscover a durable competitiveness
on all market segments of still wines."
Champagne exports rose 13.1 percent, to $1.2 billion.
Spirit export sales rose 9.1 percent thanks to a 23
percent increase in cognac sales.
Still wine exports rose 4.1 percent to $2.62 billion,
with mixed results from different regions. Burgundy
wines showed a phenomenal growth of 20.9 percent, while
Bordeaux disappointed with a 2.4 percent drop.
French wines are regaining market share in the global
market, Casteja said, noting that sales in the United
States are increasing.
He said he expected good exports for the full year,
with an increase comparable to the first half. He said
it was too early to tell how adverse weather this year
would affect the harvest.With too much rain earlier
this year, this year promises to be a very difficult
year.
"It could be very, very good or average,"
he said as vineyards prepare to begin harvesting grapes.
In the past 10 years, the French wine industry has
been plagued by declining consumption at home, coupled
with dwindling demand for French wine abroad.
Wines from New World countries such as Australia,
Chile and the United States outpaced French exports
for the first time in 2003.
Sales in France — which still account for about
two-thirds of national wine production — have
been hurt by anti-alcohol campaigns and tougher drunken-driving
laws.
Chronic overproduction has compounded the problem,
sending surplus wine to the distillery to convverted
to alcohol. The European Union's top agricultural official
suggested digging up unprofitable vineyards last month
and ending subsidies for the distillation of unsellable
wine. 200,000 hectares of french wine are expected to
be converted to alcohol, for which EU has already called
for tenders.
EU Farm Commissioner Mariann Fischer Boel also wants
to simplify and streamline the system of geographical
origins to make European wines more attractive to consumers.
French vintners and the powerful lobbies that represent
them in the European and national parliaments are vigorously
fighting the proposed EU changes, claiming they would
discard centuries of tradition in favor of New World
technique.
Source
http://www.kansascity.com/
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