by Sophie Kevany

Bordeaux merchants fear financial havoc in American and European markets will curtail the normally buoyant end of year sales period to levels not seen since post 9/11.

According to the Bordeaux Wine Council, (Conseil Interprofessionel des Vins de Bordeaux, CIVB) exports of wine to the US in the three months after the terrorist attacks of 11 September 2001, fell by 29%. Exports within Europe were also hit, falling by 10% in volume. This time, however, merchants fear the crisis may be more profound.

“The atmosphere post 9/11 was localised in New York. Now it is national or possibly, world wide," said Bordeaux-based wine merchant, Jeffrey Davies, whose principal market is America. "The big spenders that were ordering the top wines in top restaurants have been taken out," he added, describing the current state of the American market.

Other Bordeaux merchants also witnessed a significant slowing of orders last month, with one saying his turnover was 5% lower than that of September 2001. The timing of the financial crisis is particularly sensitive due to a number of factors. These include the uncertainty over the outcome of the elections in the US, the fact that uptake of the 2006 and 2007 vintage has been slow, the recent strength of the euro against both the dollar and sterling, and the possibility that many merchants may themselves be suffering from the reduced availability of credit.

It has also coincided with the so called ‘OND’ (October, November, December) period, when up to 50% of sales are made thanks to the Christmas, New Year and, in the US, Thanksgiving holidays.

Export figures for the first half of 2008 showed Bordeaux only slightly down in export volumes, and significantly up in value terms. However much of the value was due to payments on delivery of the highly priced 2005 ‘vintage of the century’.

End of year figures are expected to be less optimistic.+