Burgundy wine sales have started to decline over the past few weeks, which vintners blame on the rising euro against the weak U.S. dollar and weakening British pound. Winemakers estimate a volume decline of 4-5% in the first quarter of this year and a similar rise in sales, according to a piece in Reuters.
After two years of steep price increases and strong demand, however, growers say they have little reason to be overly concerned.
"We had been expecting a decline in volume this year after two years of growth and in any case stocks are very low in Burgundy, so we are not in tears," said Frederic Dupray, head of economic studies for the Burgundy wine association, to Reuters.
"There is a lot of demand still but what we want in Burgundy is to get a hold on volumes and improve the price level," he continued.
The euro has gained 16% against the U.S. dollar over the past 12 months. As slow economic times hit the U.S. and other parts of Europe, consumers are opting for more middle-of-the-road wines. Demand in emerging markets, such as Russia and Asia, are helping fill the space left by western countries.
Wine & Spirits Daily