Last year, Domaine Lucien Tramier began marketing its wine in the United States. Three months later, in mid-October, the Trump government offered him a very bad surprise: the introduction of a 25% tax on certain French liquors in retaliation for European aid granted to the aircraft manufacturer Airbus and deemed undue by the World Trade Organization (WTO).
The sanction, which relates to “still” wines exported to the United States in a container of less than two liters and with a degree of alcohol less than or equal to 14%, has just been renewed for six months by Washington.
“It was a bad move. We have been preparing this marketing for a year!“, Explains Marty Echerei, brand representative at Vinexpo New York. But like other producers present at this big wine fair organized on March 2 and 3, he decided to roll up his sleeves. “We preferred to redouble our efforts. We want to be more active to be part of the areas that will remain, he continues. The United States is a very large market. Some say it is the producers' Eldorado. We know that these taxes are temporary. If you put in the time and money today, it will be beneficial in the long run“.
Forty producers made the trip to Vinexpo this year as part of the first French pavilion at the show, organized by the Business France agency with four regional partners (Nouvelle-Aquitaine, Center Val-de-Loire, Champagne de Vignerons, Rhône Valley ). This pavilion was imagined long before the war of tariffs, but in the current context, it has a particular meaning. “We can interpret it as a great mobilization on the part of producers“, Explains Manilay Saito, manager of the“ wines, beers and spirits ”division for North America at Business France. “Taxes or not, it is recommended to start your career in other markets. When you don't have the elements to differentiate yourself from the competition, it's very difficult to break through. With these taxes, we must consider that the American market is even more competitive. This will tighten the actors“.
Caution
Despite "worry”Small producers and importers“who are less able to bounce back"And the eyes of the wine market players now turned to Canada, she does not want"to discourage"Those who want to try the American adventure. Business France is also organizing a road show in Washington, Miami and San Diego with several French producers from the end of April to discover the American market. “We want to continue working so as not to go in the direction of the American administration, which wants to harm the sector, says Manilay Saito. When we are approached, we warn our interlocutors. They know it’s a challenge, but it’s worth the effort. ”
A finding shared by the French of Vinexpo. “We were already registered at the show before this Trump story, but that was not a reason not to be visible internationally”Says Emeline de Lafontan from Goth, export manager at Chateau Calissanne. Even if the brand is also looking towards Asia, it will take advantage of its passage in the United States to go to Texas to promote its wines. “It is not because there are additional customs duties that we will withdraw, also launched Joan Poillet, commercial director of the Domaine de Fontenille. It's a very big market, an economy that is doing very well. The production of rosé exponentially increases and we produce 50% of rosé“.
“Supporting producers”
Like other producers, Domaine Gabriel Meffre, which has just launched its Fat Bastard wines on the American market after twenty years of presence in the United States, has worked with its importers to contain the rise in prices. But the customs duties having been renewed, it “is going to be difficult”To continue to tighten the margins. “In the world of wine, we do not make very large margins, of the order of 20 to 40%. You can imagine what 25% customs duties can represent, he sighs. But we want to stay on the United States“.
French Ambassador to the United States Philippe Etienne went around the stands on Monday to show his support for the producers before attending a reception at the French consulate that same evening for "celebrate french wines and spirits“. In February, the government reported that wine exports to the United States fell 44% in November as a result of the new tariffs. “I will not be optimistic or pessimistic"On the outcome of the ongoing negotiations between the European Union and the United States to settle the situation," said the ambassador. “We work on it and we do what we can. The important thing is to work to resolve this dispute and to support our producers“.
