By introducing barriers, the United States has struck a blow to French wine. The increase in fees, coupled with the global crisis, led to the fact that by the end of last year, revenues collapsed by 14 percent. This is reported by TASS with reference to the report of the French Federation of Exporters of Wines and Spirits (FEVS).
The organization concluded that exports fell to the level of 2016. “This decline is primarily due to taxes on wine in the United States, and the trend has only intensified since spring, when the COVID-19 pandemic spread,” FEVS stated and warned of the risk for French suppliers to completely lose the American market. “The settlement of this conflict should take place primarily at the European level,” the federation called on.
The coronavirus pandemic has also threatened the production of Italian wine. Almost half of the country’s wine consumption comes from bars and restaurants, which have been closed due to the COVID-19 outbreak. During the lockdown, household consumption increased, but the increased demand in the supermarket sector cannot cover the losses of other market participants.
On the other hand, expensive wines have begun to be seen as safe haven assets in a volatile market. Last year, the Liv-ex Fine Wine 100 index of the London International Wine Exchange increased by 4.7 percent. The Liv-ex Champagne 50 index rose 8.3 percent, while the Liv-ex Italy 100 index rose 6.7 percent.