SPIRIT SALES GOES UP AND DOWN IN A CYCLE

What comes up must come down.

Sales and Balance

I am not explaining Newton theory of gravity but the pendulum of life. Big sales, Bigger sales, and BiGGER & BIGGER SALES usually are followed by lower sales, and lower lower sales and so forth. Everything has to adapt, evolve and change but the basic concept is the one where good things have a end for some to generate good things for some other.

In business this principle is annoying but true. Hence, the importance of timing.

For the past months, we have heard of the declining sales of wines and spirits in China.

- 9% for French spirits sales in China, mostly cognac.
- 7% for French wine sales in China, -28% for Bordeaux category.

Now that we are approaching the end of the year, these news about China are only going to get worse. Why? Because if the sales were bad when the least amount of sales are made, one can only imagine the negative impact of bad sales when good sales are expected, that is when the most amount of sales is expected, i.e., end-of-the-year.

That means the end of the year and festive season sales are not going to be good and the results, reports and statistics coming from Asia are for the most part going to be even more disappointing than what has been report to date.

Another interesting data that comes from the 2014 sales results is the steady growth of Champagne sales in Asia. Nothing huge but steady. China’s recent legal recognition of the “Champagne” appellation (27th May 2013) has helped differentiate Champagne from other sparkling wines in the market, and it is likely a cause of further growth.

Sources: The Wallstreet Journal