Ronan Laborde, owner of Chateau Clinet and President of UGCB

Bordeaux Grand Cru Classe exports to Greater China continued their decline, dropping to €240 million in the 12 months ending July 2024, a further slide from last year’s record low numbers, according to data shared by Union des Grands Crus de Bordeaux (UGCB) President Ronan Laborde at a press conference in Hong Kong on November 22.

Hong Kong solidified its position as the region’s top destination for Bordeaux wines, receiving €140 million in exports during the period. Exports to mainland China, meanwhile, fell to approximately €100 million.

“While the figures have fallen, they are still substantial,” Laborde said, emphasizing Bordeaux’s dominant position in the French Grand Cru segment in Greater China, where the wines account for 67% to 75% of the total value of French Grand Crus imported.

The combined export value to Hong Kong and mainalnd China marks a significant drop from €300 million ($326 million) recorded in the same period a year earlier, which had already been a record low, as we have reported.

The downturn in Greater China mirrors a broader decline in Bordeaux Grand Cru exports globally, which fell by 16% year-on-year for the period ending July 2024. Laborde noted that this comes after record-breaking years in 2021 and 2022, when global exports reached €1.4 billion ($1.53 billion) in value.

However, the slide was widespread, with nearly all of Bordeaux’s top 15 global markets reporting declines with the exception of three markets – Thailand, the United Arab Emirates, and Taiwan, Laborde revealed.

Thailand’s gains were attributed to the government’s landmark decision to remove import tariffs and cut excise taxes, a move reminiscent of Hong Kong’s decision to eliminate wine duties in 2008. That policy transformed Hong Kong into a global fine wine hub and remains a key driver of its strong Bordeaux imports.

The future of Bordeaux exports to Greater China is clouded by rising geopolitical tensions, including an escalating trade dispute between China and the European Union over electric vehicles, solar panels, and brandy.

Laborde acknowledged the unpredictability of the geopolitical climate but expressed confidence in the industry’s ability to adapt. Reflecting on challenges faced since his election as UGCB president in 2019, including Brexit and U.S. tariffs on French wines, Laborde said Bordeaux producers are prepared to navigate turbulent times. “We are more vaccinated now,” he said jokingly, “and ready to face any situation.”

He reassured stakeholders that the UGCB would explore all legal avenues to maintain a strong presence in Greater China, stating, “If barriers arise, we will find solutions to continue selling a decent quantity of wine there.”