French wine and spirits exports plummeted last year from their post-COVID peak, as inflation eroded demand and distributors in the US market liquidated their stocks, shows Tuesday's balance sheet from the French Federation of Wine and Spirits Exporters (FEVS).

Wines and spirits are one of France's main sources of exports, and the sector has become increasingly dependent on foreign sales, as declining domestic consumption has hit certain production areas such as Bordeaux, contributing to farmer discontent.

Total French wine and spirits exports brought in 16.2 billion euros in sales last year, down 5.9% on the record level of 2022, the FEVS said in its annual review.

However, the industry group considers this to be a "soft landing", as sales in 2023 posted the sector's second-best ever export performance.

The decline in export volumes was more marked, however, with a 10.4% drop to 174.5 million cases last year.

In the United States, by far the leading export market for French wines and spirits, distributors' destocking contributed to a 22% drop in imports from France, to 3.6 billion euros.

"Most of the decline in export value in 2023 compared with 2022 comes from the US zone", FEVS president Gabriel Picard told Reuters.

In China, where the faltering economy has dampened hopes of a rise in overall demand following the end of COVID-19 restrictions, French imports fell by more than 6.3% to 1.2 billion euros.

However, the reopening of venues such as bars and restaurants has led to a slight increase in sales of spirits in the country, particularly cognac.

"Expectations were higher than reality, but reality was equivalent to 2022", commented Gabriel Picard, speaking of China.

For 2024, like other sectors, wines and spirits face economic and political uncertainty, but the end of the destocking phase on the US market is a source of optimism, he added.

China's launch last month of an anti-competitive investigation into wine spirits, such as cognac, imported from the European Union, is a risk, however. So too does a potential return to the US leadership of Donald Trump, who had previously imposed taxes on European wines.

"Now more than ever, we need the support of public authorities, who must not take the good export results of wines and spirits as an immutable given." (Reported by Gus Trompiz, edited by Zhifan Liu)