The Bordeaux Marketing Board is yet another victim amongst many in the region in the never ending downward spiral caused by the economic crisis.
Yesterday, during its annual general meeting, the 'C.I.V.B', which is a financial and promotional entity grouping together both wine producers and merchants, announced a discrepancy between the budgeted number of hectolitres sold in 2008 (5,5 million hl) and the real figure (5,1 million hl). As the wine professionals' obligatory subscriptions to the board are calculated based on the exact figure of total volume sales, the Board will see its ressources reduced by 2 million euros in 2009!
Although it will be out of pocket, the Bordeaux Marketing Board does have deep pockets : its ressources for 2009 will total some 29,5 million euros. It remains the most powerful interprofessional wine board in France.
A slump in sales transactions between producers and merchants since September and a decrease in both foreign and domestic consumer demand have led to a build up of stocks. The professionals priority now is to shift stocks before placing new orders.
In France, the traditional Autumn wine fairs did not fare well and many unsold bottles will be back on the shelves, hoping to tempt consumers at this time of Christmas cheer.
Alain Vironneau, who is not only a wine producer in the North of the Gironde region but also President of the C.I.V.B, is adamant that promotional campaigns for Bordeaux wine should be maintained :
"We will maintain our spending on promotion in 2008 because this is not the time to lower our guard." Indeed, more than 21 million euros will be invested in campaigns to promote Bordeaux wines in the coming year.
Part of the boards financial reserves will be used to balance the 2008 budget. However, its finances will not be in jeopardy as it will still have nearly 14 million euros put aside for further rainy days.
Many wine professionals however, are finding it harder and harder to pay their subscriptions and the question of a possible reduction in subscriptions has already been raised by the neighbouring Loire Valley Marketing Board.
For the moment, this is not on the immediate agenda, even though some 'wine villages' in the Bordeaux area are experiencing very real financial difficulties.
Author:
César Compadre
doc@sudouest.com
S.O. 16/12/08
Translated by Maxine Colas.