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May 30, 2022 View:

Cognac sales in France down 11.3% year-on-year in 2020

According to a recent report in the French media, the French cognac industry was affected by the New Crown epidemic in 2020, with sales of cognac brandy down 11.3% and total sales down 22.3%.

Image courtesy of: Spirits Business Watch

Cognac brandy exports fall by 800 million euros in 2020

In an interview with AFP, the French Cognac Industry Authority (BNIC) said that a total of 192 million bottles of cognac were exported in 2020, with an export value of 2.8 billion euros. This compares with exports of 3.6 billion euros in 2019, a drop of 800 million euros.

On the other hand, the New Crown epidemic has boosted the sale of Cognac products on the Internet. Lower priced cognacs dominate in the online sales channel.

For this reason, BNIC has also indicated that online sales of Cognac brandy will be greater than offline in 2020. Cognacs suitable for online sales will sell more than premium cognacs of higher value in bars or restaurants.

12.2 million bottles exported to China and Singapore, 103.5 million bottles to the United States

The sector showed signs of a strong recovery in the last quarter of 2020, with volumes increasing by 18.8% year-on-year compared to last year. Specifically, in the September-December 2020 period, exports to mainland China, Singapore and Hong Kong, China, increased by 11.4% year-on-year compared to 2019, or 12.2 million bottles exported. In the European market, 11.3 million bottles were sold, a volume increase of 4% year-on-year compared to 2019. Despite the decline in exports of Cognac brandy, which was affected by the new crown, it benefited from a good recovery in online sales and sales growth in China.

Industry insiders say this sign of recovery is also due to the strong spending power of the U.S. BNIC notes that 4.5 out of every 10 bottles of cognac exported are in the U.S. The United States, the largest export market for cognac, has seen local sales increase by 1% over the past 1 year. 2020 saw almost 103.5 million bottles of cognac exported to the United States, an increase of 1.1 million bottles over the previous year. This is proof that Cognac is maintaining a certain level of activity in the American market.

On the other hand, the new taxes implemented by the U.S. government in January 2021 will also have some impact on the cognac industry, although it is too early to assess the impact on this year"s figures. Although the new tariffs will only target some Cognac exports, the industry remains concerned that they may continue to increase in the coming weeks if the situation is not eased on the diplomatic front.