- I guess you want to be careful about currency reforms. North Korea executed a party official this week for screwing up a reform of whatever passes for currency in the country. Could this be why Beijing is so resistant to change?
- Faced by Asian competition and shifts in fashion, Swiss watch makers have redesigned and repositioned their products – and their exports are beginning to boom despite the recession. Some good lessons here for all exporters. I know I love my Swiss watch: slender, light with the clearest clock face I have ever seen.
- Have you noticed that, whenever China gets bad publicity about its products (e.g., dairy products laced with melamine, or improperly handled vaccines), they start criticizing other countries’ goods? The latest is an attack on the quality of luxury products supplied by Hermès, Hugo Boss, Versace, Dolce & Gabbana and Tommy Hilfiger, among others. Aside from the fact that I never feared for my life (only my fashion sense) due to a Hilfiger shirt, doesn’t this criticism come from the world’s top producer of counterfeit luxury products?
- Ah, mercantilism. Such a lovely word. I was amused to see Germany’s reaction to French charges against Germany’s trade surplus. They say that criticism by the French is a compliment.
- It’s nice to see your stuff get picked up elsewhere. Thursday’s post about Hawaii tourism (Selling Hawaii – or Not) was picked up by ETurbo News and I have been getting good feedback.
- Amid all the dour news about U.S.-China relations, the two countries reached agreement Thursday to re-open the Chinese market to U.S. pork exports. China had used swine flu as an excuse to close its pork market in 2009, shutting down $275 million in U.S. sales. It’s back on for now.
- Anybody interested in selling renewable energy equipment in China needs to look at the report issued by the National Foreign Trade Council last Monday: China’s Promotion of the Renewable Electric Power Equipment Industry: Hydro, Wind, Solar and Biomass.
Category Archives: France
Drinking Problems
The bottom has dropped out of French alcoholic beverage exports – except for vodka. Wait a second. Since when does France produce vodka? Isn’t that some proletarian beverage from further east in Europe? Nope.
Bacardi’s Grey Goose vodka is made in France, and makes up virtually all of France’s vodka exports. Running counter to normal recession trends, French vodka exports rose 13.7% in 2009 to $324 million. And 70% of that was sold to the United States. To put this in perspective, total French exports of wine and spirits plunged 17% to $10.5 billion. That makes vodka, quite literally, a drop in the bucket. But how did Bacardi get the job done? I don’t drink vodka, but I have never noticed a hint in Bacardi’s ads that Grey Goose is French. Any of you readers have an idea of how they did it?
U.S. imports of French wines tumbled 22.7% last year to a dispiriting $1.8 billion. And their prospects aren’t helped by a court decision last week that convicted a dozen wine growers and merchants of defrauding American buyers. A French court in Carcassonne (one of my favorite places) found that French firms had duped E. & J. Gallo Winery (and others, as yet unnamed) into buying cheap plonk, thinking it was good pinot noir from the Languedoc. (I’ve had some great wines in the Languedoc, but this apparently was not the good stuff.) The perpetrators succeeded in passing off cheaper merlot and syrah as pinot noir for two years, beginning early in 2006. Gallo says it is no longer selling any of the fake pinot, but they can’t vouch for bottles still on retail shelves. Look out for Gallo’s “Red Bicyclette” pinot noir. It may not be what you think.
The incentive for the French companies was immense. The judge said they made $9.8 million from the scam. The big winners (now losers) were respected firms: Ducasse harvested $5 million and Gallo’s supplier, Sieur d’Arques, took them for a $1.8 million bicyclette ride. A French fraud squad broke the case when they audited Ducasse’s books and found the firm had been buying “pinot noir” at about half the market price.
