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French champagne sales decline due to 2020 Coronavirus pandemic

 



In the champagne district of France – the only place in the world that can use the word ‘champagne’ for its sparkling wine – the grape crop that makes champagne will be excellent this year. The mild weather and the lack of storms will result in an excellent crop. But – it might not be picked. 

 

The Coronavirus pandemic has resulted in people celebrating less, and eating out has almost been non-existent. With no sporting events, restaurants and bars closed, no festivals, and few weddings, champagne has been hit extremely hard by the lockdown in France, with lost revenues estimated to be Euro 1.7 billion. During the France and European lockdown, sales of champagne has declined by about 75%.

 

The Comite Champagne, which regulates the industry, banned the pre-sale of champagne that was still in the fermentation process in May until 8 June 2020 to prevent retail prices from falling steeply. Champagne makers usually pre-sell 10-15 million bottles per year of sparkling wine that can take 1-5 years fermenting in the bottles while being stocked on its side – laying down. 

 

However, with the global oversupply of champagne estimated to be 400  million bottles, the co-president of the Comite Champagne, Jean-Marie Barillere, said that the month-long ban on sales was to preserve the value of the produce ‘in a context where we are selling practically nothing.’ The ban was the first emergency measure. 

 

In effect, the champagne industry, like other industries affected by the Coronavirus pandemic, will need to change. 

 

As Europe gradually ends lockdown, consumption of champagne is increasing, but it is predicted that only 200 million bottles will be sold this year – a 100 million fewer than in 2019.  

 

Grape growers are saying that with the oversupply of bottles, and if there is no space to store any new bottles of champagne, why bother picking the grapes this year? They have never seen such low demand. And they cannot store grapes indefinitely. 

 

What will happen to all of the grapes this year? Maybe there will be more manufacture of vinegar, or the grapes will be discarded.

 

In order to adapt to the dire situation this year, champagne houses are changing the way they attract customers. Tourism of the vineyards has also declined, but visitors, particularly local visitors, are slowly returning.

 

In 2019, four million people visited the champagne district of Reims in France. This year will be massively fewer people. 

 

The oldest champagne producer in France is Ruinart, selling around 2 million bottles a year. Their bottles mature underground in dark caves. Olivier Livoir, Ruinart’s hospitality manager, said that the cellars have just reopened. The company will be conducting shorter physical tours and more virtual tours of the cellars. It will also have brunches in which their chef and their oenologist can share information about the region and the grapes.

 

Other champagnes houses in the Reims region will do the same: Pommery, Lanson, Mumm, Bollinger, and Moet et Chandon.






MARTINA NICOLLS

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MARTINA NICOLLS is an international aid and development consultant, and the author  of: The Paris Residences of James Joyce  (2020), Similar But Different in the Animal Kingdom (2017), The Shortness of Life: A Mongolian Lament (2015), Liberia’s Deadest Ends (2012), Bardot’s Comet (2011), Kashmir on a Knife-Edge (2010) and The Sudan Curse (2009).

 

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