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Corona consequences: dispute in France over impending champagne glut

2020-08-12T06:24:58.198Z


In the corona crisis, less champagne flows at receptions or in bars and nightclubs. The producers therefore want to buy fewer grapes, which means that the winemakers see their livelihoods threatened.


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A waitress pours a glass of champagne in Reims: "Exceptionally" good harvest expected

Photo: Francois Mori / AP

The corona pandemic means a sharp drop in sales for the French champagne industry. Because there is less celebrating and drinking champagne during the crisis, the manufacturers say they are missing around 1.7 billion euros in sales.

Meanwhile, the sun is shining a lot and the grapes are ripening well this year. Winegrowers and producers are therefore bitterly arguing about the harvest volume for the legendary sparkling wine from the eastern French region, despite the ever-closer harvest start: will there be a glut of champagne soon?

The big producers with brands like Veuve Clicquot or Pommery are still trying to avert this - and insist on a significant reduction in the amount of harvested grapes, which must come from the specially designated champagne-growing area around the city of Reims. The winegrowers association SGV, however, warns that the livelihoods of the winegrowers could be at stake.

Price is stable at 6.50 euros per kilo

Traditionally, both sides regularly negotiate the harvest volumes. This is intended on the one hand to compensate for the risk of poor harvests and on the other hand to contain the risk of price fluctuations that could pose a threat to producers.

But an agreement is still a long way off this year: "The winemakers want 8,500 kilos per hectare, but the houses only want 6,000 to 7,000 kilos," says winemaker Bernard Beaulieu from Brave, a village south of Reims surrounded by vineyards. Since the price per kilo is expected to remain relatively stable at 6.50 euros, a lot is at stake.

"Not having an agreement just a month before the start of the harvest has never happened since World War II," says Beaulieu. At the same time, according to him, the "extraordinarily" good harvest expectation for this year is causing the anger of the winemakers to foam. Even 16,000 kilos per hectare are therefore possible.

A billion bottles already in the cellars

Meanwhile, the UMC producers' association is complaining about full stocks and expects an unprecedented drop in sales of 100 million bottles - a decrease of 34 percent compared to the previous year. At the same time, according to the association, there are currently more than a billion bottles in the cellars, theoretically enough for several years.

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Grapes on a vine at Avize: raw material for high-quality champagne

Photo: Francois Mori / AP

UMC General Director David Chatillon does not want to comment on the dispute before a meeting of the champagne committee, which is made up of winemakers and producers, scheduled for August 18. If there is still no convergence, the national supervisory authority INAO would ultimately make a decision - "a game of dice" for both parties, warns Beaulieu.

So while there could soon be a surplus of champagne, the same could not apply to other alcoholic beverages: After all, at least in Germany, more than a third of adults consumed more alcoholic beverages during the corona crisis.

Icon: The mirror

apr / AFP

Source: spiegel

All business articles on 2020-08-12

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