The Price of Eaux-de-Vie is set to Rise: Selling More Expensive to Trading Houses
In this year’s annual meeting of wine producers and trading houses there have been calls for the price of eaux-de-vie, pure alcohol, to rise.
Christopher Veral, president of the newly combined Syndicat Général des Vignerons (SGV) and the Viticulteurs Bouilleurs de Crus (SVBC), has called for a price rise of between 5 and 8 per cent. He backs up his reasoning by the fact that production costs have risen over the past year by 3.52 per cent and that over the past 20 years traders have lost over 13% on the price. He is keen that the industry should be able to plug this deficit over the coming three to four years.
Mr Veral, along with officials from the BNIC and SVBC are to put their case to the major cognac houses before this year’s harvest. He says that sales of cognac are up – and that this year’s sales should equal or even surpass that of 2007, and it’s now or never to upgrade these prices.
However, only a few weeks ago Vincent Gere of Remy Martin was quoted as saying that a 5 per cent increase ‘seems unreasonable, especially since the yield is set to increase by 10 per cent this year. This implies that growers will increase their income due to rising volumes anyway. So the outcome of these meetings is far from certain, and it will be interesting to see what the coming weeks bring.