Hailstorm hits 14,000 hectares of Bordeaux vineyards ; Italian wine sector bullish in 2022

Hailstorm hits 14,000 hectares of Bordeaux vineyards ; Italian wine sector bullish in 2022

1. Louis Vuitton acquires California winery

On June 30th, French luxury goods group Louis Vuitton expanded its operations into the Northern California wine region with the acquisition of California winery Joseph Phelps Vineyards. The deal reportedly includes the brand, winery and inventory, as well as approximately 500 acres of vineyards in Napa and Sonoma counties, and the winery is Louis Vuitton's fourth in Napa County.

2. Pernod Ricard launches digital labelling system

Pernod Ricard is to launch a digital labelling system with QR codes across its wine and spirits brands, which consumers can scan with their mobile phones to access product information on the wines. Pernod Ricard is said to be launching a European pilot programme for the digital labelling system in July.

3. Diageo to close Russian operations by the end of the year

Diageo has said it will close its operations in Russia within the next six months. Diageo has since become the next Western brand to exit the Russian market, following Carlsberg, Budweiser and Heineken in suspending their sales operations in the country.

4. Hailstorms hit 14,000 hectares of vineyards in Bordeaux

Extreme weather hit France recently, with hail storms and rare heat and drought taking turns to damage a large number of local vineyards, with localised damage to vineyards in the Médoc and Blayas. The hailstorm caused damage to around 14,000 hectares of vineyards, representing 10% of the Bordeaux appellation, with hundreds of wine farmers suffering losses, and French insurance compensation was not sufficient to cover the damage.

5. Italian wine sector on the rise in 2022

Italy's main wine producers expect the sector's turnover to grow by 4.8% in 2022, with the export segment alone set to grow by 5.6%. This is fuelled by the boom in sparkling wines (sales up 5.7% and exports up 7.5%). The data concern 251 major companies, each with a turnover of over €20 million in 2020, with total revenues of €9.3 billion, equivalent to 85.3% of the sector's national turnover.