AP: France risks losing wine production crown to Spain
It would be a shame if France's status as the top wine producer would end. OK, I am being sarcastic. This is a good example of what happens when you refuse to change with the times. Tradition is good, but you can't let it kill you.
By EMMA VANDORE
AP Business Writer
PARIS (AP) _ France will lose its spot as the world's largest wine producer to Spain unless it can shake some of its outmoded traditions and boost sales to younger drinkers and consumers overseas, the country's independent wine producers say.
Screw tops, boxed wines, colorful easy-to-understand labels and sophisticated marketing - innovations pioneered by countries like Australia and South Africa - have helped global competitors elbow in on France's market share.While Spain has adapted to the new trends, France hasn't and now looks set to fall behind, the Credoc research group says in a study done for the Vignerons Independants winemakers association.
According to current projections, France will trail Spain in 2015 as its wine production drops to 1.16 billion gallons from the 2000-04 annual average of 1.39 billion, the study said.
Shrinking domestic demand is only part of the problem.
To maintain France's position as world leader, the country's independent wine producers need to band together to promote their wines abroad, gain better access to supermarkets and other outlets, and reduce costs, the study said.
They also have to adapt to the tastes of new types of consumer - women, young people and people overseas - paying attention to flavors and packaging, it added.
In 2015, the U.S. will be the world's largest wine consumer, buying 871 million gallons, ahead of France's 686 million and Italy's 607 million, the study said. Britain is moving up the chart, with an expected consumption of 356 million gallons in 2015.
But France is failing to adapt to American and British taste buds, the study said.
Eric Rosaz, director of France's independent wine producers association, vowed to prevent France losing its crown.
"I am convinced that France has the arms to fight and keep her place as leader, but for this we need to get away from weight of history, the weight of our culture, and enter a new dynamic," he told The Associated Press.
Rosaz said French producers have made strides in making their wine more accessible and holding off inroads by emerging wine countries, but more needs to be done.
"We have the best wine, and we have the best image of wine in the world, but we have problems at the company level and in terms of dynamism," he said.
In 2007, France's wine and spirit industry exported nearly $15 billion worth abroad, a record and an increase of nearly 7 percent from the previous year, according to the French Federation of Wine and Spirits Exporters.
But the good overall export performance masks a broader crisis. While Champagne and fine Bordeaux find overseas markets, lower-quality wines and lesser-known wine regions have struggled against new competitors, such as Australia and Chile.
Chronic overproduction has also hurt, forcing European producers who can't sell their wine profitably to distill billions of bottles of wine into pure alcohol for use in disinfectants, cleaning products or gasoline additives.
[ 12 July, 2008 ] • [ Lucente ]
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