French spirits industry sees inflation giving 2022 bitter taste

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The French spirits industry faces a difficult year due to geopolitical constraints, soaring inflation and COVID-19 restrictions in China, after sales staged a partial recovery in 2021, industry group Federation Francaise des Spiritueux (FFS) said on Tuesday.

“The year 2022 is far more complex,” FFS Chairman Jean-Pierre Cointreau told reporters. “We recovered from the COVID-19 crisis but we can see that sales are at down 4% (in value) in the 12 months to the end of May in supermarkets, and down 7% between January and May.”

Spirits exports, France’s second-largest sector after aerospace, had also recorded a fall in the past few months, he said. Last year, they accounted for nearly half of total spirits sales by value and were up 30% at 4.9 billion euros ($5.18 billion).

“In the United States we have seen a sharp drop in sales since April due to the rise in inflation (..) and in Asia it has clearly slowed down because of the sanitary measures,” Cointreau said.

“It is clear that geopolitics will be one of the most important parameters in the coming year,” he added, referring to the Ukraine war and tensions between China and Taiwan.

via Reuters

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