Burgundy’s biggest export markets: 2016

Exports of Burgundy wine rose by both volume and value between 2015 and 2016 with white wines bolstering key markets such as the UK and Japan.

According to figures from the Bureau Interprofessionnel des Vins de Bourgogne (BIVB) the volume of Burgundy wine exported between 2015 and 2016 grew 1.6% from 79.5 million bottles to 80.8m bottles, while the value grew a more substantial 4.5% from €778m to €813m.

The US remains the biggest market for Burgundy, closely followed by the UK. The latter market, along with Sweden, returned to growth in 2016 after two years of decline but many of the other major European markets saw a measure of decline.

Japan remains the biggest Asian market and the only one in the top 10 but China and Hong Kong made great strides last year, Hong Kong in particular.

White wines made up 52% of exports in 2016, red wines 44% and Crémant de Bourgogne the final 4% (although growing steadily).

The total harvest in 2016 was around 1.2m hectoliters, a decline of 18.5% on the 2015 harvest but it was worse in some AOC than in others.

The Mâcon for example actually increased its yields by 3.5% over the 2015 vintage, while the Côte Chalonnaise saw volumes for its red wines rise 10% and its whites 2.3%, while production for Crémant de Bourgogne rose 1.3% overall.

The areas of the Côtes de Beaune and Nuits and Chablis that were hardest hit by hail were, said the BIVB, able to make up some of the shortfall by selling reserve stocks from the Volume Complémentaire Individuel.

Indterestingly, although Burgundy has been struck by terrible hailstorms and frosts over consecutive years, the BIVB noted that: “The Bourgogne wine sector shows production potential that is relatively stable over the long term. The variation between the average of the last 10 vintages (2007 to 2016) and the average harvest of the 10 previous years (1997 to 2006) is only a dip of 1%.”

The 10 biggest export markets in 2016 were:

10. Switzerland
Bottles exported: 1.5m
Change versus 2015: 9.2%
Value: €35m
Change versus 2015: 3.6%

9. Denmark
Bottles exported: 2.2m
Change versus 2015: -6.7%
Value: €17m
Change versus 2015: -0.3%

8. Germany
Bottles exported: 3.3m
Change versus 2015: -7.6%
Value: €26m
Change versus 2015: -7.5%

7. Netherlands
Bottles exported: 3.7m
Change versus 2015: 9.4%
Value: €22m
Change versus 2015: 7.9%

6. Sweden
Bottles exported: 442,282
Change versus 2015: 0.8%
Value: €24m
Change versus 2015: 5%

5. Belgium
Bottles exported: 5.7m
Change versus 2015: -12.2%
Value: €3.3m
Change versus 2015: -7.1%

4. Canada
Bottles exported: 6.1m
Change versus 2015: 8.6%
Value: €45m
Change versus 2015: 10.6%

3. Japan
Bottles exported: 7.8m
Change versus 2015: -3.9%
Value: €97m
Change versus 2015: 0.4%

2. UK
Bottles exported: 15m
Change versus 2015: 6.7%
Value: €129m
Change versus 2015: 10.5%

1.US
Bottles exported: 16m
Change versus 2015: 3.4%
Value: €188m
Change versus 2015: 3.5%

Click through the following pages to see more detailed reports on key markets in North America, Asia and Europe.

The US and Canada

Exports to these two markets last year showed “healthy growth” by volume, up 4.8% and with an accompanying increase in revenue of 4.8% to €10.6m.

The US: Saw an increase in volume of 3.4% in 2016 and the market now accounts for 21% of Burgundy exports by volume and 23% by value.

Chablis contributed strongly to this growth with its volume rising by 438,420 bottles, over 17% by value.

‘Villages’ level Mâconnais rose 9.5% by volume and value while village and premier cru level wines from the Côte de Nuits and regional red Burgundy grew 3.4% by volume and 12.5% by value.

The US has been the export market leader by volume and value since 2014, helped by a favourable euro/dollar exchange rate.

Canada: The other big North American market, Canada saw volumes increase by 8.6% and 10.6% by value in 2016.

Red and white regional Burgundy beat the value and volume records set in 2013, by 16% and 4% respectively, with 3.6m bottles worth €20.5m – so effectively half of Canadian imports.

Chablis is also well represented in this market, with volumes having risen from 484,000 bottles shipped in 2007 to over 1m in 2016.

Asia: Japan, Hong Kong and China

Japan remains the biggest market in Asia but China and Hong Kong are quickly taking up the slack created by this long-standing but changing market.

Japan: The market has been weakened of late by the devaluation of the yen and a shortage of supply.

Volumes dipped again in 2016, down 3.9% but the value of exports stabilized, up 0.4%.

White wines from across Burgundy are a continuing success story in Japan; Chablis grew its volumes 15.5% and value 14.7% and there was also small but palpable growth for the white wines from Mâcon and the Côtes de Beaune and Nuits. Crémant too rose 7.8% by volume and 10% by value.

There was a wobble for the reds though, down 11.6% by volume and 4.2% by value overall, although the reds from the Côte de Nuits at all levels were largely unaffected and grew 6.5% by value and a little over 11% by volume.

Hong Kong & China: If Japan is struggling, then its slack is being taken up with gusto by Chin and HK, which are now, respectively, the 11^th global market for volume and value and the 13^th market for volume and fifth for revenue.

HK in particular saw a 5% increase in revenue and 16% increase in volume in 2016, building on strong growth that dates back to 2014.

In line with the HK and Chinese markets becoming more ‘normal’, in 2016 Hong Kong saw regional Burgundy wines, both red and white, grow by 159,730 bottles and there was a slight downturn for Grand Cru wines.

Meanwhile, Village Premier Cru wines from both parts of the Côte d’Or continued to grow, up 29.7% in volume and 9% in value last year.

Over on the mainland, a 9.2% rise in volumes cancelled out a dip in 2015 (when volumes fell over 8%) and value imports – which have been consistently strong – went up 14.5%. Between 2007 and 2016, the value of Burgundy wines in Mainland China has gone from €2m to €20.3m.

Europe: the UK and Switzerland

The European markets remain somewhat difficult for Burgundy at the moment. Germany, Belgium, Ireland and Denmark all saw dispiriting drops in both volume and value in 2016 – Belgium and Ireland in particular.

On the other hand, the UK, Switzerland and Sweden returned to growth after a few years of decline and Norway, Italy, Spain, Poland, Estonia, Lithuania and the Czech Republic all had positive years of volume and value growth.

The UK: Exports to the UK in 2016 grew 6.7% by volume – against an 8.8% dip for France overall – while revenues rose 10.5% to €129m.

The BIVB explained that the “renewed vitality” in the UK market was principally down to white wines. Pleasingly, Mâcon appellations did very well, up 24.2% by volume and 27.2% by value for simple regional wines and 15.8% by volume and 21.5% by value for villages wines.

On a sourer note, the BIVB noted: “It remains unclear if this upsurge, reflecting the long history of friendship that links Bourgogne and the United Kingdom, will last. The recent increase in taxes on wines and the future effects of Brexit could have an impact two or three years from now on the various distribution circuits. One to watch.

Switzerland: An historically strong market where growth had slowed “significantly” in recent years, in 2016 volumes bounced back 9.2% and revenue rose 3.6% to €35m.

The BIVB has said it has “seized on this trend” and is going to be launching new a training programme for market influencers and the press this year.