Burgundy’s Shipments To U.S. Hit By Tariffs, PandemicOctober 22, 2020
After a strong year in 2019, Burgundy shipments to the U.S. are down by double-digits through the first seven months of 2020, owing to the twin blows of the pandemic and 25% U.S. tariffs on French wines below 14% abv. Last year, Burgundy’s shipments to the U.S.—its top export market—rose 6.5% to €226 million ($267m) on volume up 7.2% to approximately 1.6 million cases, accounting for 14% of revenue and 12% of volume of all French AOC wines exported to the U.S., according to the Bourgogne Wine Board.
From January through July of this year, the French region’s U.S. shipments declined 17% by volume and 25% by value, as producers looked to partially absorb the impact of the tariffs. Higher-end wines like Village AOCs and Village Premier Cru AOCs from the Côte de Beaune and Côte de Nuits have suffered the most, the Bourgogne Wine Board notes. Last year, white wines made up 61% of Burgundy’s U.S. shipments, while reds accounted for 29% and the remainder was Crémant de Bourgogne sparklers.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Tariffs