Despite the unprecedented combination of difficulties, French wines and spirits still brought in more than 12 billion euros in export revenue in 2020.
Publishing its annual report, the Federation of Exporters of French Wines and Spirits (FEVS), has lamented the losses but chosen to underline the positive aspects of what has been a very unusual year.
Since the country imports relatively little foreign alcohol, for a total of less than one billion euros last year, the net contribution to the balance of payments remains enormous.
The shock of 2020 is made worse by the fact that 2019 was a record-breaking year for the French drinks division . . . starting from already massive volumes, 2019 sales of cognac, champagne and wine set astronomic levels.
And then Trump started imposing revenge taxes, and China caught Covid, just before the Lunar New Year celebrations.
'Particularly difficult' situation
FEVS president, César Giron, describes the combined impact on the sector as "particularly difficult".
Duty-free sales plummeted as air traffic slowed to a virtual standstill. The closure of bars and hotels, along with the cancellation of various cultural festivals, added to the negative impact. The exporters have seen their markets hit on a worldwide scale, losing one-third of exports to each of Asia, Europe and the United States.
Champagne sales have been particularly badly hit, with a 20 percent decrease in export volumes. Ordinary wines have done better, losing just 7 percent compared to 2019 figures.
Since the end of 2019, various wine producers have called on the government to compensate them for their losses due to the Europe/US trade war, so far without success. They are now clamouring for compensation for Covid-related losses.
