‘OLD’ AND ‘NEW’ PRODUCING COUNTRIES IN THE INTERNATIONAL WINE MARKET, 1850-1938

VICENTE PINILLA1

1. Introduction

The purpose of this article is to analyze the international wine market between

1850 and 1938.

Our thesis is that from the middle of the nineteenth century, Southern European

wine production responded rapidly to the opportunities that were opening-up in the

markets of the industrialized nations, and in the French market in particular, by

increasing both their production and export of wine. For some of these countries this

increase was crucial to balance their foreign accounts. However, from the beginning of

the twentieth century, wine exports encountered increasing problems, such as a relatively

unstable demand and a tendency towards the saturation of the market. These problems

were primarily due to three factors: first, French trade policy gave preference to wine

imports from its colonial possessions in North Africa; secondly, the industrialized

countries, (excluding France) had a low capacity to absorb wine due to the persistence of

traditional consumption habits with respect to alcoholic beverages, together with a strong

prohibitionist tendency against the consumption of alcohol that reached its peak in the

United States; finally, the emergence of significant competitors in other continents, meant

that the opportunities for expansion on the part of the Southern European producer were

limited.

As a consequence, although wine exports had, in the second half of the

nineteenth century became a crucial source of foreign currency for the developing

countries of Southern Europe, the growth, or even the stability, of these exports during

1 Department of Applied Economics and Economic History, Faculty of Economics and Business Studies, University of Zaragoza, Gran Vía 2, 50005 Zaragoza, Spain.

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IEHC 2006 Hesinki Session 117

the first third of the twentieth century was very difficult. This limited the opportunities of

the wine sector to contribute significantly towards the economic development of these

countries.

2. World consumption of wine: evolution and geographical patterns of

consumption

Wine consumption developed very differently in the various countries from the

second half of the nineteenth century until the Second World War. Wine consumption

grew mainly in those countries in which a tradition of such consumption already existed.

In France per capita wine consumption more than doubled between 1860 and the years

prior to the First World War. As a result, France became the country with the highest per

capita wine consumption in the world. The French case shows how the increase in wine

consumption in those traditional consumers countries was mostly determined by the

growth in per capita income. Through the estimation of a per capita consumption

function for wine corresponding to this country for the period 1860-1938, we have

obtained an elasticity of consumption with respect to income in the long-term of 0.91; in

other words, during these years each 1% increase in income translated into a per capita

increase in consumption of 0.91%. Whilst this elasticity is relatively high bearing in mind

that we are dealing with a good from the food and drinks group, it is nevertheless

significantly lower than that of products which, within the same group, exhibited higher

elasticity, namely fruits2.

In the rest of the world, wine consumption grew in those countries that received

immigrants from Southern Europe. Everywhere else, the increase in wine consumption

was either not large or simply did not occur. In the industrialized countries (excluding

France), with higher per capita incomes, the increase in consumption was significant,

especially in the decades after 1850, although later that trend did not continue. In the

remaining backward countries of the world, the absence of wine consumption, or its

restriction to a petty minority of European origin, continued.

Accordingly, we can conclude that in the high-income level countries where wine

was not the most important alcoholic beverage, its consumption grew in the first decades

2

of the second half of the century; thereafter and until 1930, it consumption stayed almost

constant3. By contrast in those countries in which wine was a product of mass

consumption, its consumption per head grew until the 1920s.

As a consequence of the evolution of consumption during this period, as well as

of the level from which it started in the mid-nineteenth century, the world consumption of

wine in the 1920s was concentrated in Europe4. With respect to those countries for which

we have sufficient data, we can classify these in function of their level of consumption, at

the same time taking into account the consumption corresponding to beer. To that end,

and using cluster analysis in order to separate the different countries into groups, we have

obtained the results set out in Table 15.

INSERT TABLE 1

The first group, a very well defined cluster formed by three countries in the

Mediterranean region of western Europe, includes the main per capita wine consuming

countries, with their per capita annual wine consumption averages around 100 liters. As

we will see later, these three countries were, until the Second World War, the chief world

wine producers. By contrast, beer consumption in those countries was very small (Italy

and Spain) or only moderate (France).

The second cluster includes countries in which wine consumption reaches a

medium level and beer consumption is very variable. The moderate wine consumption in

Greece can be attributed to its very low income. In Switzerland, the medium level wine

consumption and medium-high level beer consumption can be attributed to its division

between the German, Italian and French speaking parts, each with their different cultural

traditions. Finally, the Argentinean case is characteristic of a country with Italian and

Spanish immigrants who are used to the consumption of wine.

2 Pinilla and Ayuda (2004). 3 These observations and those that follow are based on data on the evolution of per capita alcoholic beverage consumption in the different countries between 1885 and 1930, taken from the Annuaire Statistique de la France (1938). 4 At the beginning of the 1930s, European wine consumption reached 83 per cent of total world consumption. Its per capita wine consumption level was almost five times the world average (International Institute of Agriculture, 1944, pp. 30 and 56). 5 A description of the technique employed, as well as more details on its interpretation, can be found in Aparicio, Ayuda and Pinilla (2001), pp. 682-683.

3

The third cluster comprises countries in which wine consumption is of a low level

and, in general, with the exception of Austria, beer consumption is very low. These are

countries with a certain wine tradition and with a national production of wine that is, not,

as a rule, sufficient to supply the country. With respect to Hungary, Bulgaria and

Romania, account should be taken of the medium-low income level of the first and the

very low-income level of the second and third. By contrast, Austria had a high-income

level and therefore its high beer consumption signified that beer was the dominant

alcoholic beverage.

Finally the rest of the Anglo-Saxon, Germanic, Scandinavian or Slavic countries

consumed very small quantities of wine. Among them, we find the Anglo-Saxon and

Germanic countries, which had high beer consumption, Scandinavian countries with a

medium level beer consumption and the Slavic countries, in which beer was not

important because the consumption of spirits was preferred.

In consequence, we can conclude that only in a small corner of the world, namely

the countries abutting the Northwestern shore of the Mediterranean, was wine considered

to be a product of mass consumption. This was the case in Portugal, Spain, France, Italy

and French and Italian speaking Switzerland. Only in a few other countries was this

consumption of some significance, that is to say in Argentina, Uruguay, Chile, southern

Brazil and Greece. In the rest of the world, if wine was consumed at all, it was the high-

income classes. In 1932, an official British report expressed the same view in this way:

‘today, except in the wine producing countries, wine is a luxury beverage chiefly

connected with the ritual of entertainment’6.

The evolution of wine consumption from the mid-nineteenth century until the

outbreak of the Second World War, together with the levels finally reached in the most

developed countries, suggests that the attractive demand-side prospects that had existed

from the first of these two dates had tended to evaporate during the first third of the

twentieth century. In some developed countries, the rapid development of wine imports,

as a consequence of the general increase in international trade, slowed down as imports

encountered the difficulties noted earlier. In the less developed countries, wine imports

4

were never relevant. Among the traditional consumers, the strong accumulated increase

in consumption tended to reach high levels, which thereafter made it difficult to achieve

more than small additional increases. Finally, the slowing of population growth also

induced a gradually slower growth in the demand for wine, even for identical levels of

per capita consumption.

Therefore, two kinds of wine demand existed. First, the demand for high quality

wine coming mainly from the high income sector within the industrialized countries; and

secondly, the demand for low or medium quality wines coming from the population in

the countries where wine was a product of mass consumption. In the latter, the strong

demand for wine usually coexisted with high domestic production.

3. - World production of wine

During the period under study the world production of wine grew at a relatively

slow rate when viewed in the long-term. It can be estimated that between 1865-74 and

1935-38 world wine production grew by 65.7%, which implies an annual growth rate of

0.8%. This rate was very similar during both the second half of the nineteenth century

(0.7%) and in the first third of the twentieth (0.8%)7.

In the mid-nineteenth century, wine production was pre-dominantly located in the

main consumption areas. In 1865-74, just three countries; France, Italy and Spain,

accounted for 85% of world wine production. France alone produced 49%. No other

country reached even 3% of world production.

However, various developments in the second half of the nineteenth century

notably transformed wine production and trade. From among them, the most important

are the following: the several outbreaks of vine diseases that affected the European

vineyards, the improved conditions in wine handling that permitted its preservation over

a longer period, and, above all, the improvements in transportation, because of both

shorter routes and the decline in costs.

6 Imperial Economic Committee (1932), p. 10. This was echoed at the end of the same decade by the United States Tariff Commission (1939): “In the United States, with the possible exception of California, wine is generally considered a luxury, and its consumption is limited to special occasions”, p. 286. 7 Wine production data in the second half of the nineteenth century are taken from Morilla (1995, p. 303). Table 2 shows our reconstruction of production in the twentieth century.

5

In addition, and as argued earlier, the process of industrialization and its strong

economic and social impact meant, an increase in wine consumption and, in

consequence, a higher demand chiefly in the traditionally consuming countries. Similarly,

the strong growth in the population translated into a larger number of consumers. All of

this acted as an incentive to increase wine production.

The spread of phylloxera through the European vineyards had some relevant

consequences for the world production of wine. Fundamental amongst these was that

France, the principal wine producer and consumer, was one of the first countries to suffer

the outbreak. Some countries took advantage of the French demand for wine imports and

of high wine prices to experience an authentic, but short-lived, golden age. These

countries specialized in the supply of the French market, and in order to take advantage

of the situation, they expanded the area under wine cultivation and hence its production.

This was the case in some Southern European countries, like Spain, Portugal, Italy and

Greece. In the Spanish case, which became the main supplier of the French market during

those years, some of its regions experienced a spectacular increase in wine production,

thanks to French demand. This was particularly so for those regions closest to France, or

well located near the ports so that they could export their wine.

Other countries took advantage of the fall in French production to develop their

own vineyards, even in areas where a previous tradition of wine farming did not exist

although a tradition of wine consumption did. This was the case in some South American

countries.

In Algeria, a French colony at the time, the metropolitan government used two

policy measures to encourage French settlers to produce wine: first, by forming a

customs union with the colony in 1884, one that guaranteed the entry of wine into

metropolitan France free of duties and under equal conditions to those enjoyed by

continental production; secondly, through a policy of cheap credit for the production of

wine agreed to between the French Government and the Bank of Algeria which, in

exchange, preserved its right to issue currency between 1880 and 1897 (Isnard, 1954, pp.

100-117).

Consequently, at the beginning of the twentieth century vine cultivation found

itself in clear expansion. Alongside the traditional Mediterranean producers, and the

6

increasingly important Algerian vineyards, we must add the vineyards of other non-

European countries, i.e. Chile, Argentina, California, South Africa or Australia. Their

effect on world wine production is clear. Between 1870 and 1900 world wine production

grew by an estimated 22%. This growth was induced not only by external demand, but

also by the strong increase in domestic demand in the consumer countries, whether

traditional or new. Thus, we can note that this increase in production was common to

almost all producer countries except for France, which had not yet recovered from the

phylloxera. In subsequent years, the outbreak was to affect almost all these countries. The

earlier French experience in the fight against phylloxera and the good expectations from

the demand side impelled rapid reconstitution of the damaged vines.

From the point of view of production, it is necessary to indicate the significant

changes that took place in wine growing due to the impact phylloxera. All the grapevines

affected by phylloxera had to be replanted with American vines, which required

increased care, leading an increase in production costs. In summary, the post-phylloxera

wine growing sector needed larger amounts of capital in order to prosper (Unwin,1991).

The existence of serial statistical data on world wine production for the first third

of the twentieth century allows us to study its evolution in detail (see Table 2). Using

such data, we estimate that wine production grew by 31% from the beginning of the

century to the end of the 1930’s.

INSERT TABLE 2 AND FIGURE 1 & 2

In the first third of the twentieth century, the largest increases in wine production

took place in countries with very low earlier production levels. These countries had

propitious climatic characteristics, farmers capable of developing the cultivation of wine

(very often immigrants) and internal markets (or metropolitan in the case of some

colonies) with a sufficient tradition in the consumption of wine as to absorb heavy

increases in its production.

Thus, the diversification of world wine production grew considerably. The

growth of production in the Maghreb (mainly in Algeria) and in South America (mainly

in Argentina) was especially significant. These two regions more than doubled their share

in world production, which meant that they multiplied their production by almost three in

absolute values. Meanwhile, the share in world production of the traditional large

7

producers declined. Therefore, France and the Southern European countries lost relative

positions in world production and encountered difficult years characterized by chronic

overproduction and declining prices (Pujol, 1986; Pech,1975). The short-run rigidity of

supply with respect to price variations, together with the instability of harvests, a

common feature of many other agricultural products, can help us to understand these

problems.

The increase in production took place mainly because of the growth in yields per

hectare and, to a lesser degree, because of the expansion of vineyards in some countries.

This can be explained by the changes in the cultivation practices that took place after the

phylloxera outbreak, changes that meant greater care being given to the vines and the use

of more modern techniques.

Variations in wine supply, both quantitatively and geographically, were very

closely linked to the changes in consumption, and to the opportunities that international

trade offered to some producers. As we will see in the following section, world markets

were, mainly during the nineteenth century, a driving force for the development of wine

production in some countries, especially those located in the Mediterranean basin.

4. - The international trade in wine

The international trade in wine had very little importance around the middle of the

nineteenth century. The main obstacle to wine diffusion to distant areas from the

producing regions did not lie exclusively in cultural reasons, but also had to do with

difficulties in transportation. The transport of ordinary wine was not profitable, due to

problems in preserving wine during long distance trips and the high cost of such

transportation. Thus, the only trade that existed was in products that traveled better, such

as liquor wines (i.e. sherry, port or similar products), table wine fortified with alcohol to

keep it in good condition, and high quality wine. The increase in the wine trade took

place as both problems (transportation costs and conservation) were being solved.

Furthermore, international trade liberalization and the commercial policy

embodied in trade agreements that began in 1860 facilitated the increase in wine exports.

During the second half of the nineteenth century, the main factor underlying the

growth in the international wine trade was the huge French demand for table wine, due to

the phylloxera that had affected the French vineyards. Usually, France demanded low

8

quality wine to meet its national consumption needs and, to a lesser extent in order to be

able to maintain its exports. The increase in French demand caused an immediate rise in

wine prices, which encouraged an important growth in Italian and Spanish exports in the

short-run and in Algerian exports in the medium run8. Italian exports were stopped from

1888 by the onset of the trade war between France and Italy (Loubere, 1978, p. 273).

Initially, the increase in Spanish wine exports to France was very significant.

Because of this rapid growth, the share of Spanish wine exports in relation to total

exports, and to total agricultural exports in particular, was very high (Gallego and

Pinilla,1996; Pinilla and Ayuda, 2004). However, in the medium-run, the strong

expansion of Algerian production progressively replaced Spanish wine. From 1892,

Spanish wine encountered tariff difficulties as its favorable treatment ended.

INSERT TABLE 3

We can conclude that there were two main forces driving the wine trade during

the second half of the nineteenth century: first, for ordinary table wine, the French

demand that followed the phylloxera outbreak; secondly, for high quality wine, the

demand coming essentially from countries with the highest income levels, such as Great

Britain or the United States, where the wealthiest incomes groups demanded this product.

As Loubere stated ‘wine was a privileged drink of the privileged class and... wine

remained a kind of ideal beverage, a sign of social standing and wealth, or at least of

pretension to high status... The general increase of wealth and well being that began in

the 1850s amply proved this, for the consumption of wine went up’ (Loubere, 1978,

pp.265-266).

It was precisely the permanence of this “privileged” pattern of consumption, and

the preference of the working and medium classes for beer and spirits, that represented

the main obstacles for a subsequent extensive growth in the wine trade.

It was the countries of Southern Europe, mainly Spain, and Algeria, that benefited

most the increase in the French demand for wine with a high alcoholic content and low

quality. This wine was normally mixed with French wine. In the high quality segment,

8 French table wine imports jumped from 200,000 hectoliters in the 1860s to almost 11 million at the end of the 1880s.

9

France was the main beneficiary of the expansion in demand. doubling the value of its

exports of table wine between 1855 and 1890.

During the first third of the twentieth century, the French demand for wine, and

thus its imports offered the greatest capacity to generate increases in world wine exports.

By contrast, and as we will see below, the rest of the markets suffered a clear stagnation

during these years. Between 1909-13 and 1928-32 the wine trade grew by around 20%

and French wine imports grew by 65%. Without France, the international wine trade

would have dropped by around 13% (see table 4).

INSERT TABLE 4

The 1929 crisis caused the international wine trade to fall by 5.6% between 1928-

32 and 1934-38. Once again, France and the growth in its imports during that period,

lessened the fall. During the 1930’s, as Loubere indicated, ’there was simply too much

wine, good and bad, for buyers who lost their jobs or who feared losing them’

(Loubere,1990, p. 30). Logically, the economic situation of the wealthiest groups was not

itself blooming and increased protectionism did not make things any easier. In summary,

during the first years of the 1930’s, bumper harvests, both in large-scale producers such

as France, as well as in countries in outside Europe that had been expanding their

vineyards for years, coincided with the economic difficulties of the decade and the

resulting fall in the demand. The result was an extremely saturated international wine

trade.

Accordingly, during the first third of the twentieth century, the wine output of the

majority of wine producers was directed towards their own national markets. The seven

biggest wine producers exported between 10% and 15% of their total yield. If the clearly

export oriented Algeria is excluded, those percentages diminish to less than half.

Between 1900 and 1938, the total amount of wine traded was around 10% of world

production9.

The end of phylloxera in France did not bring about the end of wine imports or

their retreat to pre-phylloxera levels; instead, they were maintained at a high level. The

use of hybrids, which resulted in wines of very low strength and which could thus not be

10

sold directly, led to the perpetuation of the quantities of imported wine and their

subsequent increase. The solution was to mix this weak wine with Spanish or Algerian

wines that had a higher alcohol content, making the wine easier to sell (Loubere,1978, p.

299; Lachiver,1988, p. 453). Algerian exports progressively, lost their complementary

character with French production, and ended-up competing with it (Pech, 1975, pp. 121-

122).

Access to the French market was not equally easy for all countries. The main

distorting element was French trade policy and the privileged access granted to Algeria

and the rest of the French colonies in North Africa, for which the French market was

tariff-exempt.

Thanks to the growth of Algerian exports to France, the African continent, and

Algeria in particular, became the main wine exporting area in the world. Therefore,

Africa took over Europe’s position as the main exporter in the international wine trade

(table 4).

Spain was the second wine exporter at the time. The Spanish case exemplifies the

difficulties encountered by the rest of the wine exporters in competing with Algeria. The

French market was without doubt the biggest importing market in the world (see table 4).

We should therefore conclude that, the discriminatory French policy greatly limited the

possibilities for expanding the wine exports on the part of the Southern European

countries. As an illustration, during the first third of the twentieth century, Spanish wine

exports to France never reached one third of the peak achieved in the 1880s. Before 1875,

Algerian exports to France were zero, but thereafter they grew. In 1930-34 they reached

11.95 million hectoliters thanks to favorable French policy. Without the existence of this

policy, Southern European wine exports would have probably expanded in parallel with

the increasing French demand. Therefore, the decrease or stagnation in the export of

ordinary wine from some of the Southern European countries from the beginning of the

twentieth century was not due to stagnant French demand, but rather to French trade

9 Percentages for other significant products were highly variable (Aparicio, 2000): around 19% of world wheat production was exported; the percentages for barley varied between 9 and 15%; the percentage for corn was around 8%; for sugar between 40 and 50%; and for cotton between 50 and 70%.

11

policy and the support of the French government for the growth of wine production in its

North Africa colonies (table 3)10.

In addition, it should be taken into account that French demand fluctuated greatly,

depending on domestic production, and that these fluctuations were most damaging for

the exports of the Southern European countries.

However, the problems faced by these countries extended well beyond the

situation of the French market. They encountered growing competition in the rest of the

markets in a commodity for which demand was stagnant. They responded by trying to

expel French wine from the lower quality segments, while France maintained its

predominance in the higher quality segments. Simultaneously, the increase in production

in countries with no, or very little, wine growing tradition lowered their need to import

wine, i.e. the development of the domestic production of wine in places such as Australia

or South America implied a considerable decrease in their imports (Table 4). South

American wine imports were almost 10% of total world imports before the First World

War, but they decreased dramatically by the end of the period under study to only 0,78%.

The production increases in these countries were achieved under the umbrella of strong

tariff protection, which represented an obstacle to the entry of ordinary table wines

coming from Southern Europe.

Furthermore, the situation of the international wine market deteriorated as a result

of the crisis that began in 1929 and the economic problems of the 1930s. All of this was

magnified by the weak international trade that resulted from the strong increase in

protective measures. The drop in consumption and the increased supply added to the

difficulties faced by international trade. This increased supply resulted from consecutive

good harvests during those years and from the added production of the new vines planted

in the new producers countries( Douarché, 1930).

Therefore, with the exception of Algeria, which benefited highly from its direct

access to the French market, the first third of the twentieth century was not a boom period

for the other wine exporters. On the contrary, these were decades marked by successive

10 In the Spanish case, there was a very big difference between the volume of ordinary wine exported between 1880 and 1900, and the much lower volume exported between 1900 and 1935 (Pinilla and Ayuda, 2002, p. 68).

12

situations of overproduction, unfavorable prices and, when viewed as a whole, a fall in

exports.

5. Concluding remarks

It is important to emphasize the distinct character that the consumption of wine

had in the diets of the different countries, especially within the European countries. The

opportunities to expand wine exports were considerably limited by the fact that wine was

a mass consumption product in only a very small number of countries. In spite of this,

during the second half of the nineteenth century an authentic golden age emerged for the

expansion of wine exports. The expansion in the export of high quality wine was due to

the growth in demand coming from the industrialized countries, whilst the strong

expansion in the export of medium and lower quality wines was due to the problems that

affected the French vineyards. These problems occurred in a period of rapid growth in

domestic and international demand, which caused France to increase its imports of wine

in order to meet both its growing domestic demand and its growing exports. In both

cases, the improvements in land and maritime transportation and in the methods to

preserve wine helped the expansion of exports.

The lesser-developed countries of Southern Europe reacted quickly to these

opportunities, which demonstrates that their wine growing and processing sectors were

very sensitive to the signals sent by the market. The growth of liquor wine exports from

Portugal and Spain to Great Britain, and of ordinary wine from Portugal, Spain, Italy and

Greece to France, was spectacular. These favorable expectations for the wine industry

partially explain the significant investments made by these countries to replant their vines

after they had been devastated by phylloxera, an event which occurred only a few years

after the outbreak affected the French vineyards.

However, these expectations were over-shadowed by the change in French trade

policy during the 1890s. Afterwards, not only did expectations fall, they actually

worsened11. In addition, the use of better techniques and new vines with greater

11 On the importance of French trade policy and that of other importers, see for Portugal, Lains (1995, pp. 102-111) and for Spain, Pan-Montojo (1994) and, Pinilla and Ayuda (2002). This would be a good example of Nye’s view (1994, p.13), ‘that the nature of tariff and tax policy in the West’s leading

13

productivity generated a larger production that faced a market in which growth depended

primarily on the expansion of French imports. French trade policy was favorable to its

colonies, and especially to Algeria. This implied that it was difficult for the Southern

European producers to compete with Algeria, therefore making it very hard to expand

their exports. Furthermore, the international wine market was very unstable and without

meaningful growth outside France, whilst the Southern European producers had to face

the growing competition coming from the new overseas wine producers such as

Argentina, Chili, South Africa or Australia. Finally, the collapse of international trade

after 1929 dealt a deathblow to the hopes of Southern European producers. Conversely,

Algeria experienced a growth in production and exports without parallel in the rest of the

world.

Consequently, during the first third of the twentieth century, wine exports were in

general very unstable and faced unfavorable prices. In some countries wine exports

dropped, whilst in others the rate of growth was much smaller than during the golden age.

In the countries of Southern Europe, the excellent expectations generated during the

nineteenth century for the development of the wine export sector tended to evaporate, as

did the importance of their wine exports in foreign trade. Until the beginning of the

twentieth century, the wine exports of these countries had contributed towards balancing

their foreign accounts by financing the imports of manufactured goods, and had also

stimulated economic growth through the benefits generated by these exports. However,

from the beginning of the twentieth century, this contribution seriously declined. At this

time, their specialization in the production and export of wine, for which these countries

had a clear competitive advantage, revealed its limitations as a motor for agricultural

development, the growth of the agri-food industry and the growth of exports.

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We have made our calculation of world wine production on the basis of data collected from the International Institute of Agriculture (1911-1939). Data missing from the above source has been completed using the following sources: Mitchell, B.R. (1986), (1992) and (1993); United States Tariff Commission (1939); and Office International du Vin (1928-1939):Annuaire International du Vin. Paris.

Data that could not be obtained from any of the above sources has been estimated as an average of the available data on previous and subsequent years. The percentages of estimated production of total world production in each period are:1.5 (1900-04), 2.8 (1905-09), 3.9 (1910-14), 3.5 (1915-19), 2.4 (1920-24) 1.0 (1925-29), 1.1 (1930-34), 4.9 (1935-38).

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TABLE 1. PER CAPITA CONSUMPTION OF WINE AND BEER IN VARIOUSCOUNTRIES, 1923-1927 (five year averages) (PURE ALCOHOL IN LITERS)

WINE BEERHigh wine ITALY 12.60 0.12consumption FRANCE 12.40 1.47countries SPAIN 12.29 0.09Medium wine ARGENTINA 5.80 0.72consumption GREECE 4.62 0.01countries SWITZERLAN 4.52 1.85Low HUNGARY 3.24 0.24wine BULGARIA 2.28 0.12consumption ROMANIA 1.48 0.18countries AUSTRIA 1.45 2.53Very YUGOSLAVIA 1.16 0.20low BELGIUM 0.82 7.39wine NORWAY 0.45 1.12consumption GERMANY 0.44 2.36countries CZECHOSLOV 0.34 2.47

AUSTRALIA 0.29 2.29 UNITED KIN 0.22 3.87 DENMARK 0.21 2.04NETHERLAND 0.21 1.75 IRELAND 0.15 2.02 CANADA 0.13 0.95ESTONIA 0.09 0.30 NEW ZEALA 0.08 1.94SWEDEN 0.07 0.98RUSSIA 0.06 0.12LATVIA 0.03 0.19LITHUANIA 0.01 0.18

Source: Imperial Economic Committee (1932), p. 85.

TABLE 2. WORLD WINE PRODUCTION, 1900-1938ANNUAL PRODUCTION IN THOUSANDS OF HECTOLITERS (five year averages)

1900-04 1905-09 1910-14 1915-19 1920-24 1925-29 1930-34 1935-38The biggest World producersFrance 51,614 58,322 47,524 39,038 61,861 56,845 56,940 58,771Italy 40,400 45,299 42,271 35,628 41,690 41,193 36,397 38,926Spain 16,040 14,928 13,638 17,827 20,785 21,215 17,809 14,852Algeria 6,078 7,657 8,120 6,856 7,834 11,052 17,338 16,838Portugal 5,131 5,214 4,311 4,710 5,060 5,946 7,864 7,159Argentina 1,708 3,028 4,597 4,435 5,718 6,098 5,139 7,395Romania 1,156 1,608 1,295 1,930 4,345 6,384 8,233 9,438The geography of wine productionFrance 51,614 58,322 47,524 39,038 61,861 56,845 56,940 58,771European Mediterranean Countries 63,429 67,985 63,422 61,481 73,327 74,445 69,066 68,722Other European countries 16,439 18,520 12,869 12,549 14,071 15,628 22,131 23,966OLD PRODUCING COUNTRIES 131,482 144,827 123,814 113,069 149,259 146,918 148,137 151,458Algeria 6,078 7,657 8,120 6,856 7,834 11,052 17,338 16,838Rest of Africa 443 591 715 949 1,211 1,668 2,609 3,646Asia 497 505 407 15 99 156 106 177North America 1,199 1,450 1,875 1,444 542 293 777 2,692Argentina 1,708 3,028 4,597 4,435 5,718 6,098 5,139 7,395Chile 1,185 1,808 2,318 1,863 2,213 3,001 2,470 3,451Rest of South America 684 713 734 788 977 1,466 1,388 1,477Australia & New Zeland 263 237 225 311 536 806 671 888NEW PRODUCING COUNTRIES 12,057 15,990 18,991 16,660 19,129 24,539 30,498 36,563TOTAL 143,539 160,817 142,805 129,729 168,388 171,457 178,635 188,022

Sources: see Appendix

FIGURE 1: WORLD WINE PRODUCTION, 1901-1938 (thousands of hectoliters)

Source: Imperial Economic Committee (1932), p. 85.

Sources: See Appendix

70000

90000

110000

130000

150000

170000

190000

210000

230000

1901 1904 1907 1910 1913 1916 1919 1922 1925 1928 1931 1934 1937

World Wine Production

Moving averages

FIGURE 2: WORLD WINE PRODUCTION, 1901-1938 (thousands of hectoliters) : OLD VS. NEW PRODUCING COUNTRIES

10000

100000

1000000

1901 1904 1907 1910 1913 1916 1919 1922 1925 1928 1931 1934 1937

OLD PRODUCING COUNTRIES NEW PRODUCING COUNTRIES

TABLE 3. FRENCH IMPORTS OF ORDINARY WINES IN CASKS Origin of imports (%) % of FrenchSpain Algeria Others Production

1847-49 32.3 0.0 67.7 0.01850-54 83.4 0.0 16.6 0.11855-59 85.0 0.0 15.0 1.01860-64 81.0 0.0 19.0 0.31865-69 87.0 0.0 13.0 0.31870-74 69.8 0.0 30.2 0.71875-79 73.4 0.1 26.4 2.31880-84 72.0 0.8 27.2 23.61885-89 63.4 8.2 28.4 40.51890-94 67.5 25.3 7.3 23.51895-99 50.5 46.6 3.0 20.51900-04 19.7 75.8 4.4 9.41905-09 0.8 97.7 1.5 10.41910-14 15.0 78.4 6.6 16.81915-19 26.4 58.3 15.3 19.81920-24 23.4 61.1 15.5 11.31925-29 17.5 73.7 8.8 18.61930-34 7.9 85.2 6.9 24.71935-38 0.5 92.1 7.5 21.9Source: Direction General des Douanes, Tableau du Commerce Exterieur de la France, 1850-1938, Paris.

TABLE 4. WORLD TRADE IN WINE, 1909-1938 (Five year averages)1909-13 1924-28 1928-32 1934-38 1909-13 1924-28 1928-32 1934-38

WINE IMPOR Thousands of hectoliters Percentages of total world importsGermany 1,103 950 844 937 6.8 5.5 4.3 5.1France 8,237 10,565 13,603 14,343 50.9 61.1 70.0 78.1U.K. 574 778 635 745 3.5 4.5 3.3 4.1Switzerland 1,561 1,364 1,187 942 9.6 7.9 6.1 5.1EUROPE 13,079 15,375 17,696 16,823 80.8 89.0 91.0 91.7USA 331 2 1 131 2.0 0.0 0.0 0.7N&C AMERIC 770 279 212 267 4.8 1.6 1.1 1.5Argentina 589 62 47 11 3.6 0.4 0.2 0.1Brazil 689 287 167 82 4.3 1.7 0.9 0.4S. AMERICA 1,526 487 314 143 9.4 2.8 1.6 0.8ASIA 181 210 198 175 1.1 1.2 1.0 1.0AFRICA 542 890 992 915 3.4 5.2 5.1 5.0OCEANIA 80 38 32 31 0.5 0.2 0.2 0.2WORLD TOT 16,178 17,279 19,444 18,354 100.0 100.0 100.0 100.0

WINE EXPOR Thousands of hectoliters Percentages of total world exportsSpain 3,106 4,078 3,712 575 18.8 22.5 18.5 3.0France 1,978 1,664 1,075 833 12.0 9.2 5.4 4.3Greece 570 930 850 416 3.4 5.1 4.2 2.2Italy 1,553 1,395 1,081 1,337 9.4 7.7 5.4 7.0Portugal 1,082 1,080 957 822 6.5 6.0 4.8 4.3EUROPE 9,406 9,412 8,129 4,735 56.9 52.0 40.5 24.6N&C AMERIC 78 1 3 3 0.5 0.0 0.0 0.0S. AMERICA 3 33 55 94 0.0 0.2 0.3 0.5ASIA 59 83 112 97 0.4 0.5 0.6 0.5Algeria 6,764 7,939 10,876 12,885 40.9 43.9 54.1 67.0Tunisia 180 515 714 1,114 1.1 2.8 3.6 5.8AFRICA 6,951 8,470 11,627 14,127 42.0 46.8 57.9 73.5Australia 43 99 110 168 0.3 0.5 0.5 0.9OCEANIA 43 99 110 168 0.3 0.5 0.5 0.9WORLD TOT 16,541 18,100 20,092 19,227 100.0 100.0 100.0 100.0Source: Import and export averages made by the International Institute of Agriculture (1909-1939), with the exception ofthe last one period which has been calculated by ourselves with the annual data.