Since October 18th, French wines entering USA get a 25% tax on their market value after customs clearance. What about U’Wine?
This taxe is quite harmful for the whole wine industry: some négociants are strongly exposed to the American market and the tax impacts most of the wines (for U’Wine it applies on 90% of the wines for example).
For U’Wine and its business, we are however not so impacted:
- Our export distribution channel are much more developed in Asia (12% of our customers in 2019) and Europe (6%) than in United States (0,6%).
- The fine wines are less impacted that the small wines given their high sale price and the purchasing power of the customers.
- The place prices will keep increasing a bit, even slightly decreasing, but the U’Wine modele is uncoupled from traditional market. U’Wine has 110% growth in 2019 and thanks to our distribution offer addressing customers (RETAIL), we have over-performed the place market of 48%.
- Finally we hope that European Union and France will react.
So as in China, we are mainly confident about the U’Wine model on American market. We aim to target the United States in about 2 years, this taxe will not block us!