W22: Wine Update

Published Jun 9, 2023
W22: Wine Update

In W22 in the wine landscape, Russian wine suppliers are facing difficulties due to EU sanctions. Under the sanctions put in place last summer, it is illegal to export corks from the EU to Russia. Currently, 70% of the cork produced globally is from Portugal, followed by Spain at about 10%. For wine producers who claim to belong to the premium class, natural cork is an essential feature, so producers are often reluctant to choose alternatives such as a synthetic plug or a screw-on cap. Furthermore, the administration of the Krasnodar Territory in Russia plans to increase import duties on imported wines. By making this decision, it will be possible to eliminate imported goods of poor quality from the Russian market. Moreover, in 2022, unfriendly countries which oppose the Russia-Ukraine conflict provided 69% of Russia's wine imports. At the same time, a number of them unilaterally banned the import of Russian manufacturers into their countries. Supplies of imported auxiliary materials are also subject to sanctions, resulting in an increase in the price of premium domestic wines. The Russian Post has set up the required framework for a test on the remote sale of wine, which is expected to begin on November 1, 2023, until July 31, 2026. Through a special subsection of the Russian Post, citizens would be able to purchase Russian-made wine with delivery to a specific address or post office.

During May 15–25, vineyards in the Southern Tier, Finger Lakes, and Hudson Valley areas of the US suffered frost damage due to the exceptionally low temperatures that New York State experienced. Impacts vary greatly depending on location, with damage estimates ranging from 5-100%. New York is the third-largest grape producer and the third-largest wine producer in the US. According to the New York Wine & Grape Foundation, USD 6.65B in revenue is generated from the wine sector in New York State. There are 471 wineries in New York, growing varieties of grapes on 35,000 acres. In Switzerland, the Canton of Vaud has decided to maintain, or slightly increase in 2023, the production quotas set in 2022 for the various crush of each wine region. In 2023, the production quotas for Chasselas and other white grape varietals will remain at 1.10kg/m2. As for pinot noir and other red grape varieties, the production limit remains globally unchanged at 0.90kg/m2. Only Gamay and Garanoir are raised from 0.90 to 1.00kg/m2 in Lavaux, Dézaley, Calamin, and La Côte. According to the DFA, this proportional rise intends to expand the offer in the lucrative rosé wine market. 

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