A few days ago, One of Zhou Dong’s “Mojitos” set off a frenzy, with a Mojito cocktail with a Cuban-inspired Latin style that blends perfectly with the summer. In reality, however, the world’s high-end wine industry is suffering unprecedented lying as a result of the outbreak. Recently, the French Champagne Industry Association said that the new crown outbreak may lead to 100 million bottles of champagne sales, at the same time, many European countries to replace the slow-selling wine into hand sanitizer and alcohol. In this regard, some netizens said, “82 years of hand sanitizer to a bottle.” “
The virus’s coming.
Who’s going to drink champagne?
France’s champagne industry is facing an unprecedented economic crisis as a result of the new crown virus pandemic, with sales likely to fall by 30-35 percent this year and trade by 1.7 billion euros, the French Champagne Industry association said. The association says this year’s situation is more difficult than it was in 1974 and 2000, and it is unprecedented. This year’s shipments are expected to double that of 1974, when sales fell 15 per cent. The industry will suffer the biggest crisis in its history this year. The supply of champagne will fall by 25.6% year-on-year between January and April 2020, with only half of the champagne to be sold in the last four months of the year (September-December). Only an improvement in the epidemic is the key to the champagne industry.
As early as the end of March and the beginning of April, almost all parties in most parts of Europe were cancelled or postponed, and bars and restaurants were closed. Champagne sales under the epidemic measures have been seriously affected, the outbreak of Italy and Spain, France, is the main market for champagne sales.
Champagne is a type of wine that is marketed at the high end of the market, which currently accounts for nearly 50 per cent of global champagne sales, while in French supermarkets and hypermarkets it has fallen by 70 per cent.
So far, producers have sold 100 million bottles of champagne so far this year, 100 million fewer than normal, or about a third of 2019 sales, according to The Local. The loss of revenue is estimated at approximately $1.7 billion ($1.83 billion). In 2019, champagne reached its highest ever turnover, breaking the 5 billion euro mark for the first time in history, and sales were strong earlier this year before the outbreak began.
Champagne is picked entirely by hand and mainly by temporary migrant workers in Eastern Europe, and if the travel ban continues, the sparkling wine region will not be able to harvest, which will be another big problem ahead.
Milk Bath OUT
Now it’s wine hand sanitizer!
Europe’s wine industry has been hit hard by the new crown outbreak. According to an assessment of the European wine industry, wine production in Europe will fall by 30% this year, with about 300 million litres of wine sold in French wineries alone and at least 1 billion litres of wine across Europe forced to store in storage tanks because they cannot be sold. Such a huge inventory has overwhelmed the winery that the 2020 harvest season storage space has become the biggest problem for winemakers. To solve this problem, the Italian Agricultural Federation has proposed converting 15 to 20 million litres of wine into hand sanitizers and industrial or medical alcohol. France and Spain have also written to the European Commission asking the European Union to approve the transformation of unsold wine into hand sanitizer and industrial or medical alcohol. The European Commission has now approved the plan. According to French media, 33 companies in France have been authorized to start making about 20 million liters of wine into commodities such as ethanol disinfectant. Reported that the work will continue until October 15, the origin of the naming control of the mark of wine is subsidized for 78 euros per 100 litres, not 58 euros per 100 liters of subsidy. However, due to limited funds, the final purification will be about 200 million liters.
After seeing this message, netizens have feeling: “the tears of heartache flowed down from the corner of the mouth”, and some said, “to bottle 82 years of hand sanitizer, wake up first”, there are netizens said: “I want to know what the price of such hand sanitizer will sell, with a price of red wine”, “wash hands will not be a red wine taste.”
Wine merchants shout to the government:
“Mom, help me! “
Over the past few years, French wine producers have suffered severe crop failures, frosts, droughts and high temperatures, with many turning to mid-range and entry-grade wines at home. More seriously, the United States recently sharply increased tariffs on French wine exports. Since the tariff increase, the price of French wine in the United States has risen significantly, making it difficult for French exporters.
The French wine industry has also turned to the French government for help after it backed the troubled airline industry by subsidising companies such as Air France and Airbus. The government’s response is that the wine producer’s payroll tax and other business fees will be waived, while winemakers will be allowed to distill the excess 2 min of raw material into ethanol.
As for the government’s move, The Burgundy wine producer, France’s biggest wine exporter, protested, saying that the government was willing to let wineries turn it into industrial alcohol, and why wouldn’t it help producers in exports, tariffs and so on? They want help in exports. They asked for 500 million euros ($540 million) in aid and a series of compensation agreements covering the entire EU, expected to reach 250 million euros ($270 million) to offset tariffs.
Bordeaux wine merchants, on the other hand, have embarked on the road of reducing production and maintaining price selling and self-reliance. According to local media reports, the Bordeaux Wine Growers Association is studying a production cut plan to address the problem of overcapacity in AOP-rated wines by 2020, with a total reduction of up to 20 per cent. A proposal adopted by the organization on June 22nd shows that Bordeaux’s AOP red wine production will be reduced to 5,000 litres per hectare by 2020, compared with 54,00 litres per hectare in 2019. In addition, the production per hectare of super Bordeaux grade, peach and white wine has also been reduced. At present, the Chinese market is the first exporter of Bordeaux wine, once recorded an annual export volume of 84 million bottles.
Chinese wineries into “ghost houses”?
Insiders ” We have money!” “
A lot of Chinese money went to France in previous years to buy wineries, so what happened to them after the outbreak? Some Chinese wineries in France have been “abandoned” in the midst of an industry slump, according to France’s CNEWS television. Reports reveal that a Chinese-owned winery in Bordeaux’s Kadyak region now looks a bit like a “ghost house” – the winery’s viticulture is unattended and the winery appears to have been abandoned. Employees say they don’t have the money to buy pesticides and fuel tractors. The winery, which was bought by Chinese, has been confiscated for months with other messages from its boss, with thousands of litres of good wine unfortunately lying in barrels waiting for buyers. More than 50 other wineries near Bico are reported to have been bought by Asians, almost all of them “abandoned” by their new owners, and more than 100 employees are waiting for pay. “Chinese buywineries seem to be more focused on coming to enjoy than producing wine,” says local residents. Several Chinese bosses responded by saying, “This is not the case, it is the new crown pneumonia outbreak that has delayed the flow of funds.”
According to wine industry insiders familiar with the local situation told reporters that there is indeed a winery such a situation, rather than many families. Chinese companies that can buy wineries in Bordeaux are capital-rich. So far, the vast majority of Bordeaux Chinese wineries are operating normally, a small number of Chinese wineries have been suspended, because some buyers do not know the rules of operating wineries, did not consider the follow-up capital investment, only led to the suspension, which has nothing to do with the outbreak. There are also some people who are blindly optimistic when they buy, but after the acquisition found that overseas investment fell short of expectations, so they divested.
A river spring water is hard to turn back
A new study by IWSR, an international wine and spirits analysis agency, suggests that global alcohol producers will see a “double-digit” decline in sales this year, with “widespread travel restrictions” and the closure of bars and restaurants having a long-term impact on the wine industry, global alcohol consumption expected to return to pre-epidemic levels until 2024, the global wine industry will go back by five years and some categories of wine may never recover.
Beer is expected to rebound faster than spirits and wine due to low prices, and may be one of the first categories to return to normal sales, the study said. Global beer sales rose 0.3 percent in 2019 and sales rose 2.2 percent, and beer sales are expected to return to 2019 levels by 2024, “much better than wine and spirits.”
The report recommends that efforts be redoubled in the area of electronic commerce. The company’s research on 16 key markets shows that wine sold online is growing faster than overall sales in 2019.
Online beer sales rose 14 per cent, while the market as a whole grew by only 1 per cent, while online wine sales rose 18 per cent, while the market as a whole fell 1 per cent.
Global e-commerce sales are currently $21 billion and are expected to more than double to $45.5 billion by 2024.
In the stock market, shares in LVMH Group, the main wine and spirits producer, fell after the outbreak.
Look at my big A Maotai again.
What’s the old saying? “The scenery is unique here”!