This drop in sales is the result of the application of the ordinance on the supervision of promotions in volume and value, a flagship measure of the Food Law adopted at the end of 2018.
The ordinance on the supervision of promotions, one of the flagship measures of the Food Law, has reduced the turnover of autumn wine fairs by nearly 10%, penalizing in particular Bordeaux and champagnes, according to a study published on Tuesday.
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“While FMCG is stable overall“, the wines show a decline of 9.4% in turnover during the eight weeks stretching from September 2 to October 27, compared to the same period of 2018, underlines in a press release the firm Nielsen, whose studies are benchmarks in this sector.
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Total sales of the wine department thus fell below the 1 billion euro mark in September-October in hypermarkets, supermarkets, drives and convenience stores, he specifies. According to Nielsen, this fall in sales follows the adoption of the ordinance on the supervision of volume and value promotions, in December 2018, and its application since the beginning of the year. “A traditional peak in sales, the fairs proved to be less interesting for customers in the department this year, and the lack of promotional offers clearly penalized the wines as a whole.“says Nielsen.
Thus, since January 1, promotions on food products cannot exceed 34% of the selling price to the consumer. And, since March 1, the overall volume of promotions is limited to 25% of turnover or of the forecast volume of purchase between the supplier and the distributor fixed by contract. “Champagnes are the most impacted with -34% of turnover, of which 90% comes from a drop in promotionadds Nielsen.
In terms of still wines, the decline in sales is less (-5.4%) and is explained above all by red wines, which represent 94% of losses, particularly penalized by Bordeaux. Only whites are doing well (+1.1%). The 2018 edition of the Wine Fairs had already been disappointing, with sales down 2.1% in value and 4.4% in volume, despite an increase in the number of references in the catalogs, according to Nielsen. The Autumn Wine Fairs represent around a quarter of the annual sales of the wine department in supermarkets.
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