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Thursday, March 28, 2024

Luxury food industry turns sour amid lockdowns

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Luxury food industry turns sour amid lockdowns
Luxury food industry turns sour amid lockdowns

Global demand for premium foods like wagyu beef, bluefin tuna and caviar has plunged with thousands of restaurants shuttered and many economies sliding into recession.

Ciara Lee reports

Caviar and foie gras are probably not staples on most shoppers' supermarket lists.

And with social restrictions shuttering thousands of restaurants around the world, demand for premium foods is sinking.

Some products have lost nearly half their value since the start of the year.

One representative for Champagne producers in France said he hoped people would celebrate the easing of lockdown with a nice bottle, but expected a difficult end to the year.

There's been an estimated 80% year-on-year decline in seated diners at restaurants in countries including the U.S., UK, Germany and Canada.

And people are also less likely to consume luxury foods when stuck at home in the middle of a health crisis.

As eateries reopen, consumers are expected to be cautious about spending.

Falling demand has already taken a toll on the prices of luxury items. In Tokyo, the price of top quality wagyu beef cuts has fallen about 30% from a year earlier.

Bluefin tuna - considered the best in Japan - has dropped more than 40 percent.

In France, caviar prices are languishing near historic lows, champagne sales have tumbled, and foie gras producers have had to cut output.

To plug the yawning gap left by eateries, many high-end food producers are attempting to reach consumers online.

Others are steering more produce onto supermarket shelves.

But some vendors say selling to supermarkets is far less profitable than selling to high-end restaurants.

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