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Wine Woos World as Trade Fair Opens

The world's biggest wine fair, Vinexpo, opens in Bordeaux next week safe in the knowledge that the number of wine-drinkers worldwide is on the rise, notably in the United States and in emerging markets such as China, Russia, Brazil and India.

Vinexpo, which gathers 144 nations and opens June 18, is also comforted by news that the world wine surplus may soon be eliminated, thus driving up prices. A survey carried out for Vinexpo 2007 by the London-based International Wine and Spirit Record (IWSR) predicts global wine sales will increase 45 percent by 2010 and production by 41 percent.

"This is a key finding," said Robert Beynat, chief executive of Vinexpo. "It means demand exceeds supply. It also means that any wine surplus should be eliminated."

Beynat predicted that the current world surplus of about 30 million hectolitres would be soaked up by sales, and cautioned against the European Union's current focus on intensive pulling up -- or grubbing up, as it is known -- of vines as part of its new reform package.

Beynat believes the matter must be decided on a regional basis. Other predictions for 2010 from the study include the entry of China and Russia, at 10th and 8th place, in the world's top 10 wine consuming nations, and the emergence of America as the world's number one.

The study reckons that by 2010 Americans will be drinking 27.3 million hectolitres of wine, 12.3 percent of world consumption, at a value of 22.75 billion dollars. At the moment the US is third, behind Italy and France.

Although Vinexpo is in name a wine and spirits trade fair, spirits only take up about 12 percent of exhibitor space. However the survey contained good news for vodka, tequila, cognac and whisky producers, indicating these were the leading growth categories. Gin is the only category in decline.

Other industry issues due to be delved into during Vinexpo, which winds up June 21,
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