Wine commerce faces provide chain, struggle fallout after document 12 months

PARIS (Reuters) – Provide chain disruptions and the struggle in Ukraine may curb international wine commerce after it rebounded final 12 months to a document degree as nations eased coronavirus-related restrictions, worldwide wine physique OIV stated on Wednesday.

World wine commerce, as measured by complete exports, elevated by 16% in worth to 34.3 billion euros ($36.15 billion) and by 4% in quantity to 111.6 million hectolitres (mhl), with each indicators marking all-time highs, the Worldwide Organisation of Vine and Wine (OIV) stated.

One hectolitre is the equal of 133 customary bottles.

“In 2021, we noticed an general restoration of the wine market. The actual problem is how the sector will resist the scenario in 2022,” Pau Roca, the OIV’s director basic, instructed a information convention.

After the pandemic contributed to logistical backlogs and rising prices, Russia’s invasion of Ukraine may additional fan inflation and depress shopper demand, he stated.

Western sanctions towards Moscow may have an effect on commerce with Russia, which spent 949 million euros on wine imports final 12 months, largely from Italy, France and Spain, he added.

Final 12 months’s development was pushed by the world’s high three wine exporters Spain, Italy and France, which accounted for simply over half of complete exports, OIV stated.

France’s wine trade has already reported document export gross sales for 2021.

Amongst importers, america remained the highest vacation spot in worth phrases, with imports rising 21% to six.2 billion euros final 12 months, OIV stated.

U.S. import volumes rose 13% to 13.9 mhl, overtaking Britain because the world’s second-largest importer as Brexit contributed to a contraction in UK imports.

Germany remained the largest importer by quantity with secure imports at 14.5 mhl.

Complete world wine consumption grew by 1% in quantity, stemming a decline seen since 2018 linked to a pointy drop in Chinese language demand following an earlier wine increase, OIV stated.

International manufacturing in 2021 was estimated at 260 mhl, down 1% from the earlier 12 months as weather-hit grape harvests in western Europe outweighed document output within the southern hemisphere.

The estimate was nonetheless above an preliminary forecast vary of 247.1-253.5 mhl given by OIV in November, with Italian output notably revised upwards.

($1 = 0.9488 euros)