The clouds are moving away from the champagne vineyard. Donald Trump's threat to tax 100% for $ 2.4 billion (2.2 billion euros) of French products, including the famous bubble wine, stirred the hearts of major champagne houses. Now is the time for calm after the French decision to suspend the taxation of GAFA (Google, Amazon, Facebook and Apple) which aroused the ire of the American president.
Already, when the United States had decided, in October 2019, to tax French wines up to 25% in retaliation for European support for Airbus, the Champenois had pushed a sigh of relief. But with a watchword: keep a low profile so as not to offend winegrowers who are victims of the ax. The visit of Bernard Arnault, owner of LVMH owner of large champagne and cognac houses, another alcohol which escaped the surcharge, to Donald Trump before the American decision had been widely commented. The lobbying operation was effective.
Lower sales in France
The stake is of importance for champagne for which the United States represents the first export market. And while sales of this famous bubble wine are decreasing in France. According to Maxime Toubart, president of the General Syndicate of Champagne Winegrowers, "Sales in France are expected to drop 4% in 2019". The previous year, they had already fallen below 50% of total volumes sold for the first time.
As a result, the number of bottles sold in 2019 is expected to erode and drop below 300 million to 297.5 million. A threshold that Champagne wines had not crossed since 2009, a year marked by the consequences of the financial crisis of 2008. However, the total value of the bottles sold in 2019, close to 5 billion euros, should continue to increase very slightly and reach a new record. A performance obtained thanks to the promotion of Champagne wines for export.
This means that political and economic tensions are closely followed by the Champagne profession. "We are pleased to see that things are working out with the United States but we remain cautious. We are never safe from a turnaround ”, explains Mr. Toubart who also raises as concerns “The drop in sales in Australia, China, Hong Kong and Singapore, and the uncertainties to come on the British market. "
