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RHONE VALLEY<br />
– REGION –<br />
Wine grower and negociant Michel Chapoutier who leads the way for organic winegrowing<br />
and has pioneered biodynamics in the northern Rhone Valley<br />
From Hermitage hill, where Michel Chapoutier has one<br />
of the most scenic viewpoints in the northern Rhone<br />
valley, the region’s undisputed leader of organic and<br />
biodynamic winegrowing is furious. He knows only too<br />
well how serious the consequences of the Airbus-Boeing<br />
dispute and consequential Trump taxes are for the entire<br />
French wine and spirits industry. 2020 was not just the year of the<br />
pandemic, it also revealed the impact of the 25% additional duties<br />
slapped on French wines under 14% ABV in containers under<br />
2 litres in October 2019. Since 12 January 2021, the taxes have<br />
been extended to include all still wines and wine-based spirits,<br />
which will make an even bigger dent in sales for 2021.<br />
FROM TRUMP TAXES TO BREXIT<br />
“The decision by the US administration to apply punitive tariffs in<br />
retaliation for subsidies improperly paid to Airbus is both unfair<br />
and unacceptable to the wine industry*. Our strategy involved<br />
both anticipation and staying in the public eye. We exported wines<br />
before the tax was made official, and maintained our links with the<br />
United States. But the Americans don’t like to pay taxes, and we felt<br />
that customers were avoiding French wines in the US. So we had<br />
to slash our margins by 8 to 12%”, claims Chapoutier. Winemaker<br />
Simon Gauthier at Domaine de la Présidente in Vaucluse realised<br />
that the drop in prices put his estate in direct competition with the<br />
likes of Guigal and Chapoutier.<br />
* The Biden administration recently suspended the tariffs for a four-month period<br />
SPRING 2021 GILBERT & GAILLARD - THE FRENCH EXPERTS ON WINE 25