PARIS, March 27 Burgundy producers have hiked
their prices for the U.S. market by 10 to 20 percent over the
past weeks due to the continued decline of the dollar, the
president of the Burgundy wine association said on Thursday.
"We have been absorbing the dollar decline for the past few
years. The producers have given up their margin, the trade has
sacrificed its margin and the importers have slashed their
margins," Pierre-Henri Gagey told a news conference.
"But we have now arrived at a situation where we cannot take
it any longer and from now on we will feel the full brunt of any
further dollar weakness," he said at a presentation of the
economic situation of Burgundy wines in Paris.
Gagey is also chairman of the Maison Louis Jadot wine
"We can dream about lower interest rates in Europe but we
have to deal with the reality, therefore the prices on the U.S.
market have been increased in the past month by 10 to 20
percent," he said.
The United States is Burgundy's biggest export market in
terms of value at 180 million euros ($284 million) per year and
the second biggest in volume, at 18 million bottles, after
Britain. Exports have risen due to strong demand for white wines
and red wines from pinot noir grapes.
(Reporting by Marcel Michelson; Editing by Quentin Bryar)