Not much to celebrate in Champagne
More From: Curious Facts & Fun
Posted September 7th, 2009 by Matt Kane
The recession is biting hard in the French wine making industry, with the sales of table wine and Vin de Pays reportedly falling by almost a quarter this year. Naturally, the higher end of the market has also taken a considerable hit, as people are thinking twice before purchasing sparkling wine, with many opting for competitively priced prosecco or cava.
New rules introduced for the 2009 harvest in this prestigious region will mean that more than 40% less Champagne will be produced this year. Stocks are high at the moment, and the basic rule of supply and demand would dictate that price would fall as supply rises and demand tails off, but the powers that be are doing their best to preserve the premium price levels.
The new deal struck will see the basic yield set at 8,000kg/ha (equivalent to around 230m bottles), which is intended to see growers get a fair deal, whilst not adding to the surplus headache of the Champagne houses.
It’s easy to say that Champagne producers need to lower their expectations and start selling at lower prices, but it’s not as easy as that. I believe the rules and regulations surrounding the French appellations help to maintain consistent high standards, whether it’s for an inexpensive white Burgundy or a vintage Champagne. Could that be what makes France the greatest wine making nation on earth?
This of course could be argued either way. My point is that this kind of action helps to protect the region in the long run, whilst ensuring if we want to get our hands on the worlds best sparkling, we know where to go, even if it is at a premium price. Essentially, it helps cut out the rubbish and keeps the bar set high.
France is getting it tough at the moment, but I’ve no fear for the future. Provided they can keep their head above water for the next few years, they’ll once again allow their wine to do the talking. And consumers will nod in agreement.
To view Decanter’s article on Champagne’s new harvest rules, click here.
September 8th, 2009 at 1:30 pm
Hi Matt,
Interseting article. Any reduction in yield has to be good. Good to see you at the Adelaide Hills tasting. I am heading down to Skibbereen for the Taste of Wesk Cork so I might try and pop in to say hello on the way.
Des
September 8th, 2009 at 5:00 pm
I know that there are many elements in the world of wine that are changing…the Chinese are buying large amounts and the market in India has helped but I have found that (unfortunately)too much depends on the global economic engine of the US and to tell the truth it is really spluttering and will continue to do so for at least several years…I know that in the long run this (and all the world’s markets) will return to a sense of normalcy but I hope that the powers to be in the French marketplace have a lot of staying power and patience!
September 8th, 2009 at 9:09 pm
Hi guys, thanks for the comments.
Mark, I think you’re right about America. The state of the economy there is definitely taking its toll on Champagne, but as I mentioned, France will be just fine provided it can ride out the next few years. If Champagne maintains its name in the wine world as the best at what they do, those rich bankers (or whoever the next breed of wealthy people are) will be knocking back the good stuff once again.
Des, it was my older brother, Michael, you would have met at the Adelaide Hills tasting (don’t worry, people always mix us up). You’re very welcome to pop in at any time. Had a glance at your blog and you seem to be quite niche, which is a good thing when it comes to wine. There’s just so much to learn!
September 9th, 2009 at 9:35 am
Hi Matt,
How embarassing. Though in my defence I think that Kevin Ecock called him Matt also! My blog is very Francocentric but I am going to try to get a few New World wines in somewhere. Hope to see you & Mike then when I pop in.