French vodka exports overtake Cognac

Vodka has overtaken Cognac as the most exported French spirit by volume, as the sector continues to struggle against China’s on-going campaign of austerity.

Cognac is no longer the most exported French spirit by volume, figures by the FEVS have revealed

According to recent figures released by the Federation of Wine and Spirits Exporters (FEVS), exports of French spirits dropped once again in 2014 as brands battled a “difficult” economic environment and “intensified” competition.

French wine and spirits sales fell 2.8% by value in 2014 to €10.8 billion, while volumes also fell 2.8% to 194m cases.

Total spirits sales dropped 5.3% to €3.3bn as Cognac struggled against China’s on-going crackdown on excessive spending and consumption, while volume shipments fell 1.6% to 49m cases.

Cognac was therefore overtaken by vodka as the most exported French spirit by volume, as FEVS reports that 13.4m cases of vodka were exported in 2014, compared with 12.8m cases of Cognac.

The US was revealed to be the top market for French wine and spirits exports, with an increase of 4% to €2 billion in 2014 – representing almost a fifth of total exports value.

China maintained its position as the fifth top market for French spirits exports, which FEVS claims reasserts the market’s “long-term potential”, while other regions in Asia were “positively oriented”.

Central and Eastern Europe “suffered” from the political and economic fallout of the on-going turmoil between Russia and the Ukraine, while Spain and Italy recovered sales and Germany and Sweden “continued to grow”.

The FEVS claimed despite the overall trend of decline, 2014 saw the third best historical performance of French wines and spirits.

“The year 2014 has confirmed the ability of our companies to adapt to a constantly evolving environment such as China or Russia,” said Christophe Navarre, president of the FEVS.

“Our companies use this strength in France to create jobs, but also to support the economy and territories. And we are already working on future markets, namely in Africa.

“But we should also use these results to acknowledge our weaknesses. Our companies are today caught between a shortage in supply, in particular in the wine sector, and the ability of our competitors to offer products that are better value for money.”

Navarre added that drinks companies and governments should join together to “knock down trade barriers” and develop production potential.

Figures collated by the Bureau National Interprofessionel du Cognac (BNIC) showed that despite further declines in global Cognac sales in 2014, the sector showed “signs of recovery”.