French alcohol producers are being hit hard by the pandemic—champagne pre-sales are being suspended and Burgundy winemakers are asking for €500 million in aid
, which amounts to roughly one third of sales in 2019. Lost revenue is estimated at around €1.7 billion .
To protect the price, when not much is selling, the Comité Champagne has halted pre sales, which usually take place in June for sparkling wine which is still in the fermentation process.Over the past few years, French wine producers have suffered poor harvests, ruined by frost, drought and excessive heat. Many were expecting a good year in 2020 before the pandemic hit–and now consumers have mostly turned to mid-range and entry-level wines to drink at home.the recent huge increase in U.S.
. Since the tariff increase, French wine is significantly more expensive in the U.S. making it difficult for French exporters, but notably in Burgundy, as it’s one of the biggest–Burgundy wine producers send 56% of its bottles abroad, 20% to the U.S. The French wine industry asked the French government for help, citing how they are currently supporting the beleaguered aviation industry by subsidising companies such as Air France and Airbus. .Finance Minister Bruno Le Maire told wine producers that payroll taxes and other business charges would be waived.
Burgundy wine producers are up in arms, because they don’t usually have excess stock. Instead they want help with exports. They have asked for €500 million in aid and for an E.U. wide compensation package deal to be reached, which is expected to amount to €250 million to offset the tariffs.
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