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China slump pulls down French wine and spirit exports
Sep 9, 2014
(Reuters) - French wine and spirit sales to China dropped by more than a quarter in the first half of the year as Beijing's policy discouraging luxury gift-giving continued to hit high-end alcohol sales, pulling overall French exports down in their wake.
French wine and spirits exports shed 7.3 percent in the first six months of the year to 4.8 billion euros ($6.2 billion), mainly hampered by a 28 percent fall in sales to China, the sector's federation FEVS said on Tuesday.
The sector had already recorded signs of weakness last year when total sales fell 0.4 percent, also pressured by a fall in sales of cognac and Bordeaux wines to China.
Cognac exports, which account for two third of French spirit shipments abroad, fell 12 percent in value in the first half of the year. The sector's main players are Hennessy, part of LVMH , Remy Martin from Remy Cointreau and Martell by Pernod Ricard.
Wine sales in the first half fell 7 percent to 3.3 billion euros, despite an 8 percent rise in value in champagne sales. Bordeaux sales plummeted by 28 percent in the first half, also pulled by the Chinese market, FEVS said.
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