A spotlight on French and European wine data.

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Buying a French Vineyard Was Never More Expensive

As Champagne recovers, wine real estate in Burgundy and the Loire Valley continues to go strong, while Bordeaux falters.

Pursuing a dream of becoming a winemaker in France has never been more expensive.

Vineyard prices in France rose 2.2% to a record in 2022, according to Safer, France’s rural property agency. The Champagne region partially recovered from a year-earlier slump, while wine property continued to appreciate in the most prestigious grape-growing areas of Burgundy and the Loire Valley. The Bordeaux region was an outlier, with values falling in some well-known wine areas.

Buying a hectare of vines, about the area of a rugby pitch, cost an average €151,200 in France last year, according to data published by Safer on May 25. Real estate demand in Champagne benefited from strong sales for the region’s sparkling wine, with record volumes last year following a rebound in 2021, according to Safer.

“After three years of decline, the average price per hectare in Champagne rises again, in a very active property market,” Safer said.

Excluding Champagne, the cost of vines with a French appellation of origin (AOP) increased 2% to a record €81,600 per hectare. The high cost of Champagne property means the region accounts for half of the wine real estate value in France, while making up 7% of the country’s planted AOP vineyard area.

Vineyard deals top €1 billion

The number of wine property deals rose 1.1% to 9,490 in 2022, the most transactions in 15 years, with 2.35% of France’s vineyard area changing hands. The value of the area that changed owner fell 7.9% to €1.01 billion, weighed down by wine real-estate transactions in the Bordeaux region falling 36% to €224 million.

In Champagne, the average price per hectare rose 2.4% to €1.07 million. For Burgundy’s Côte-d’Or growing area, average values rose 12% to €887,200 per hectare, boosted by a 15% jump for prices of both red and white premier cru, or first growth, vineyards.

In the Loire Valley, the price of a hectare of vines in Sancerre jumped 24% to €260,000, while Menetou-Salon registered a 13% increase to an average €90,000 per hectare.

The pricey vines of Sancerre.

“Since seven years, the increase in the average value has been driven by the regular increase of prices in the prestigious appellations, which benefit from an attractiveness as a safe haven for wealthy investors,” Safer said.

Average prices in the Bordeaux region fell 3.1% to €127,900 per hectare, with wine property values falling in areas including Pessac-Léognan and Médoc. Safer said the decline is due to commercial difficulties for the Bordeaux and Côtes de Bordeaux appellations, with vineyard prices stable in more prestigious areas such as Pauillac and Pomerol.

As France Grows to Love Rosé, Red Wine and Champagne Face Pressure

With Generation Z coming of age, France is increasingly serving rosé and white wine rather than the traditional ‘ballon de rouge’

Whatever France’s reputation as red wine country, turns out French drinkers are more likely to be found sipping a glass of pale yellow-gold or pink wine these days.

Rosé wine volumes sold in French supermarkets and hypermarkets doubled between 1994 and 2020, data published by crop office FranceAgriMer show. White wines registered comparatively pedestrian 13% volume growth over the period. By contrast, red wine sales fell by more than half.

French hypermarket and supermarket shoppers are turning to rosé wine and away from reds.

Food retail is where most French consumers buy their wine, ahead of specialty stores, bars and restaurants, surveys show. Combined sales volumes of rosés and whites in hypermarkets and supermarkets overtook red wine in 2018, according to the data gathered by Symphony IRI.

Generational shift

There’s clearly a generational shift. One in every three glasses of wine consumed by Generation Z and Millennials is a rosé, according to a Wine Intelligence survey ahead of February’s Vinexpo Paris. That compares with less than one glass in four for wine drinkers aged 55 and over.

The popularity of pink wine is a bit of a French thing. The country accounts for 35% of global rosé intake, according to an observatory by the Provence wine board with FranceAgriMer. That compares with France’s 11% share of overall global wine consumption.

White and rosé wines were the preferred purchase for French shoppers in the 18-to-24 year age range in an OpinionWay survey from September 2021, with less than one in ten choosing red wine. Champagne was the wine to buy for 17% of Gen Z-ers of drinking age.

This colour shift is happening in the context of a vertiginous drop in French wine drinking in recent decades. Average wine consumption fell to 36 liters per capita in 2018 from 71 liters in 1990 and 128 liters in 1960, statistics office Insee says.

Drinking less, but better

Less drinking has also gone hand in hand with a shift away from wines for daily consumption, the “vins de consommation courante,” to higher-quality bottles. An Ipsos survey in October 2021 found consumers were spending an average €11.70 a bottle, an increase of €4.20 from six years earlier.

Red wine producers may take some consolation from these higher prices, which have helped make up for lower sales volumes. The value of red wine sold in French supermarkets and hypermarkets stood at 1.95 billion euros in 2020 from 1.68 billion euros in 1994.

Still, the gains for reds pale in comparison with the jump in value of rosé sold through food retailers, which climbed fourfold to 1.14 billion euros in the same period. White wine sales in supermarkets and hypermarkets more than doubled to 927 million euros, the FranceAgriMer data show.

Growth for rosés, and whites for that matter, has been particularly strong in the category of IGP wines, for Indication Géographique Protégée. Consumers are clearly happy seeking out, say, a rosé produced from cinsault and grenache grapes in the IGP Pays d’Oc, or a white chardonnay from the IGP Val de Loire.

While business in IGP wines has been dynamic, in value and to a lesser extent in volume, the Appellation d’Origine Protégée category has been more lackluster. Typically considered a step up in quality, AOP wines have seen falling volumes, and spending also took a turn for the worse in recent years.

The ramp-up for supermarket sales of rosé coincides with a decline in Champagne shipments in France since 2010. While correlation is not causation, quaffing of bubbly and blush does appear to be heading in opposite directions.

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