with correspondents in Japan, Russia, USA, Sweden; edited by M.Andrew, FIJEV

In a recently released study by WorldWineTrade.com they wrote: "Looking at alcohol consumption changes over a 30-year period (1970 to 1999), the picture is startling. Looking at alcohol consumption changes over a 30-year period (1970 to 1999), the picture is startling. Consumption in Italy has fallen by 44%, in France by 34% and in Spain by 15%, though the decline, happily, appears to be stabilizing at last. In the UK, however, consumption has grown by 52% since 1970, the growth fuelled by wine.

Consumption has risen in a similar way in Denmark (39%) and the Netherlands (43%). According to a recent report by Canadean, Greater Europe as a whole has reached a plateau, however, and for the alcohol-based producers the future is going to be difficult-soft drinks (33% of the drinks market) and hot drinks (30% share) are predicted as the growth sectors. Western Europe's total alcohol consumption has fallen from 131 liters in 1990 to 123 liters
at present and the only real growth region for wine within Europe is cited as Scandinavia and Norway in particular.

Consumption in the USA and Canada peaked in the 1980's and has since fallen by 20% back to levels of 1970, but wine consumption per capita exceeded 7.5 liters for the first time in 1999 since 1990 in the US.

In Japan, alcohol consumption is now steady at 6.6L following a period of strong growth (44%) from a very small base since 1970. A market study by Dentsu found that 76% of women questioned preferred wine to other alcoholic drinks, with red wine being preferred to white (53%), and only 8% of those surveyed did not like wine.

On a global basis, consumption of beer and wine is generally growing (fuelled by Eastern Europe, Russia and emerging markets) whereas spirits continue to decline. On average total alcohol consumption is still declining in Western Europe (down 6% between 1990 and 1998), North America (down 10%) and Australasia (down 12.5%)."

(Copyright 2001 WorldWineTrade.com. Republished with permission. This article originally appeared at www.WorldWineTrade.com the leading e-marketplace for the wine industry's producers and bottlers of bulk
wine.)

And yet Cognac industry led by the Big Four continues to progress in the last 1-2 years at about 5% increase in sales. This can be attributed to increased advertising investments, Internet presence and overall improvement in quality and packaging. But the road ahead is tough and as always it begins in the Cognac region. Restructuring, quality, simplification of labeling, advertising, promotion and education are the key words.

16 June 2001