- Title: French wine producer fears 'significant' halt in sales caused by U.S. tariffs
- Date: 4th October 2019
- Summary: RIVESALTES, FRANCE (OCTOBER 3, 2019) (REUTERS) WINE BOTTLES FOR SALE IN SHOP AT WINERY 45-YEAR-OLD FRENCH WINEMAKER AND OWNER OF CAZES ESTATE, LIONEL LAVAIL, WALKING INTO SHOP WINE BOTTLES LAVAIL PUSHING CART IN SHOP LAVAIL LOOKING AT BARRELS (SOUNDBITE) (French) 45-YEAR-OLD FRENCH WINEMAKER AND OWNER OF CAZES ESTATE, LIONEL LAVAIL, SAYING: "We fear a sharp decrease in imports of French wines because we are competing with all the other (wine) producing countries like Chile, South Africa and wines from California, because we mustn't forget that the United States produce their own wine. So we are imported products, all the more so in a region like ours which is the south France and is growing rapidly, we are developing our image on the spot. And we really fear a significant and difficult halt in the commercial development that we have had up until now." VARIOUS OF BARREL CONTAINING THE ESTATE'S SPECIAL WINE "LE CREDO" FROM A 100-YEAR-OLD GRAPEVINE VARIOUS OF LAVAIL WITH BOTTLE OF LE CREDO BOTTLE OF LE CREDO (SOUNDBITE) (French) 45-YEAR-OLD FRENCH WINEMAKER AND OWNER OF CAZES ESTATE, LIONEL LAVAIL, SAYING: "Before the tax passes we're likely to get a lot of orders, people are going to stock up. However, we're very worried about the year 2020. I would remind you that we are concerned because the most dynamic market so far being China for exports is also in a phase of not recession but in any case of reduction. So we were very confident that we would really focus on the North American market, meaning U.S.A/Canada. I think that the U.S.A. will be less of a priority in the coming months." VARIOUS OF LAVAIL IN WINE SHOP WINE'S PRODUCED BY LAVAIL VARIOUS OF VINEYARD
- Embargoed: 18th October 2019 13:49
- Keywords: France French wine United States of America tariffs on wine Donald Trump trade dispute USA WTO wine exports
- Location: RIVESALTES, FRANCE
- City: RIVESALTES, FRANCE
- Country: France
- Topics: Government/Politics,International Trade
- Reuters ID: LVA001AZOMHXJ
- Aspect Ratio: 16:9
- Story Text: A U.S. move to impose 25% duties on their wares has brought little cheer to winemakers around France who fear a possible hit to their business just as they felt the market was increasingly opening up to them.
Lionel Lavail, a winemaker located just north of Perpignan in southern France, produces an average of 1.5 million bottles and exports more than 200,000 to the United States, which he said represents over 15 percent of their revenue.
Lavail said he is going start focusing more on other markets as higher tariffs would immediately raise prices by $5 to $10 per bottle which he fears could lead to an important halt in sales.
"We fear a sharp decrease in imports of French wines because we are competing with all the other (wine) producing countries like Chile, South Africa and wines from California, because we mustn't forget that the United States produce their own wine," he said.
French wine exports to the United States totalled $1 billion in 2018, or about 20% of total exports. Champagne is not targeted by the extra duties.
Lavail bought the Cazes vineyard and estate in 2014 and produces organic wine from 350 hectares of land.
Besides the United States, Lavail also exports Cazes wines to Japan and Scandinavian countries.
(Production: Alexandre Minguez and Pascale Antonie) - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2019. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None
