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  The wine market: Between hope and concern.
 
  The crisis in the wine industry which has been coming to a head since 1998 had its first effects in the year 2000.
 
 
  The Occitane zone covers two CTE’s (Land Exploitation Contracts) – The Haute Vallée de l'Orb is operational and the Côtes de Thongue will be operational from February 2001. (A General Meeting in January 2001 will give more details). Anyone desiring further information should contact M. Lopez at l’Occitane.

  At first the crisis was masked by the small 1998 harvest and by the euphoria created by high demands for wines (although not sales) for the new year of 1999. However, the fall in the market is now confirmed on a daily basis. The orders have severely fallen from January 2000 and the volume of sales has been in free fall since the first week. As a result there is a large amount of unsold 1999 wines which weigh heavily on the market, and a large proportion of wine ordered was still in the cellars on 31st August. This has lead to a pessimistic start to this years sales campaign marked by a wait and see policy of the buyers (very small sales figures) and also by a large selection of products on the market. The dealers who before bought great volumes of wine are now buying by much smaller units.

  It is within this difficult environment that we have started out present sales drive. However, even though the proportion of the harvest sold is smaller than previous years, it is still relatively strong thanks to the overall high quality of our wines.

  Prices have also been affected by this crisis which have been cut considerably. Average price cuts have been imposed on Sauvignon, Cabernet and Syrah and lower cuts on Merlot. The Chardonnay prices, however, have been slashed. Given the low order rates it is difficult to re-establish the correct prices and the measures taken for the 1999 campaign which have forced the prices down even further. This year the Alicante market is virtually non existent. It is inevitably going to be a difficult year especially for the members who have also been affected by a drop in volume.

  We do, however, have reasons to be optimistic. We posses vital assets such as the quality of our products which allow us to maintain a strong presence on the sales market and the skills of our sales staffs that offer an opportunity for a commercial partners to take advantage of the slightest opportunity that arises and which should stand us in good stead for the future.
 
 
  In the near future, the production of our wines from new vinification methods and the establishment of a new range of conditioned wines will open up new markets for us.