France, Delivery Services

In the first half of 2020, just one week of containment cost France 585 Million Euros in on-trade consumption. Over the first half of 2020, on-premise food consumption fell by 35%. As the country emerged from the first wave of containment, the transition to teleworking limited the recovery of the on-trade sector.

Alcoholic Beverages Suffered Spectacular Declines

Alcohol sales fell by 16% (in value terms) in the 12 days following the introduction of the first containment in France. Both still wines, whose sales have fallen by 2%, and spirits, which have plunged to 3%, have in fact been in decline since the start of the confinement. On the other hand for beer, sales in grocery since 17 March have tended to rise by 7% compared with the same period in 2019.

Some alcoholic beverages even suffered spectacular declines, such as champagnes and other sparkling wines, liqueurs and ciders. Apart from the rosés, wine sales are increasingly in decline, driven by hypermarkets.

On the other hand, the progress of convenience supermarkets is confirmed. Wine sales have increased in the drive by 118% and 158% in April 2020.

High penetration of meal delivery applications

The on-premise sector in Europe was more strongly affected compared to Latin America and Asia. One of the main explanatory factors is the high penetration of meal delivery applications and services in Asia and Latin America compared to European cities. Penetration of the meal delivery market (under 50) in South Korean cities is 99%, 84% in China and 80% in Brazilian cities. In comparison, penetration is much lower in the United Kingdom with 36%, 37% in Spain and 44% in France.

We have analyzed red wines listed in the French Riviera restaurants:

1. Provence
2. Bordeaux
3. Rhone
4. Burgundy
5. Loire

6. Languedoc
7. Beaujolais
8. South West France
9. Corsica
10. Roussillon

11. Piedmont
12. Tuscany
13. California
14. Vin de Table
15. Central Valley

Online food ordering has smoothed the impact of COVID-19 for some countries, creating new opportunities in these difficult times. This service is well established in Asia and Latin America, and represents a good growth path to explore for the recovery in Europe.

Relying on the use of home delivery applications could help recover lost revenue for cafés and restaurants. Home delivery services have the potential to broaden their offerings, especially in the beverage market, with a great opportunity for brands traditionally anchored in the on-trade market to expand into new moments of home consumption.

Key Points

• Wine and spirits consumption decreased, where as beer rose in retail stores
• The on-trade sector in Europe was more strongly affected compared to Latin America and Asia
• Penetration of the meal delivery market in France is 44%, when it reaches 80% in China.