Wholesale red and white wine prices have dropped in France since March given the impact of COVID-19, while values have rebounded in Spain in recent months, according to data from the European Commission.
COVID-19 has had a big impact on French wine prices, Europe’s second biggest wine producer after Italy, but the continent’s biggest premium wine producer. The following charts from the European Commission give wholesale prices in euro for each hectolitre of wine. It shows a downward trend for most French and white and red wine prices from March until the end of May 2020, the period for which data is available.
In Spain, the news has been better in recent months. Some red and white prices have rebounded while Germany’s prices have been largely steady since March 2020 until the end of July, the period for which data is available for both countries. Data isn’t available for Italy.
Fears of wine ‘lake’
Industry analysis have warned that Europe may drown in surplus wine given the impact of COVID-19. Restaurant closures are decreasing consumer demand for wine, while exports too are drying up.
According to the EU, the closure of hotels, bars and restaurants in EU countries directly affected 30% of the wine volumes, corresponding to 50% of the value, of wine consumed in the EU. The consumption of wine at home has not compensated for the fall in consumption outside the home.
Even before COVID-19, the EU wine market has facing difficulties in 2019, with wine stocks are at their highest level since 2009. That’s a result of a record harvest in 2018 and general decreasing wine consumption in the EU. In addition, the US, the EU’s main wine export market, imposed additional import tariffs on EU has impacted exports.
“The COVID-19 pandemic has delivered a further blow to a fragile sector that is no more able to market or distribute its products effectively, due mostly to the closure of major export markets and to the measures taken to ensure a proper confinement and lockdown in particular the interruption of all catering activities and the impossibility to supply usual customers,” according to the EU.