EUROPEAN WINERIES HURDLE THROUGH WEAK DOLLAR BARRIERS

The weak American dollar is reportedly not hurting imported wine sales, according to an article by the AFP and much to the satisfaction of foreign countries. Jon Frederikson of Gomberg-Frederikson said producers are more willing to swallow “heavy foreign exchange losses” as demand rises in the US and exporters strive to establish their brands.

Exports from every major nation were up in the first half of this year, Frederikson said. Italy was up 11% in volume, followed by France which grew 10%. The volume of wines from Germany, Portugal and Spain was also up, he said.

At the same time, domestic producers hope the weak dollar will lead Europeans to purchase more American wines. The weak dollar will allow more American wines to be sold in Europe between 2.99 and 6.99 euros, where European wine sales see the most growth.