Title: The Decline in Champagne Sales: People Opting Out of Celebratory Consumption
Last year, the number of Champagne shipments from France plummeted approximately 10%, landing at around 271 million bottles. This marks the second consecutive year of a steep decline, with inflation-wary consumers tightening their purse strings and a pervasive gloom hanging over the world. This dismal outlook was confirmed in a report by Comité Champagne, an organization representing over 16,000 winegrowers and 320 Champagne houses.
The report portrayed an industry battling against a host of challenges, mirroring the sales trends of other alcoholic beverages. Maxime Toubart, co-president of Comité Champagne, acknowledged the grim situation, citing factors such as inflation, international conflicts, economic uncertainty, and political uncertainty in key markets like France and the US.
In France itself, Champagne sales shrank by 7%, landing at 118 million bottles. This dip was attributed to the country's lingering economic and political challenges, which were underscored by a summer snap election resulting in a hung parliament.
Initial signs of struggle emerged earlier in 2024, when French luxury giant LVMH, a major Champagne producer, reported a 15% decrease in bubbly sales for the first half of the year. Despite the troubles, Toubart and David Chatillon, the other co-president of Comité Champagne, remain optimistic about the future of Champagne, arguing that it's a resilient and sustainable industry.
Champagne is often associated with joy and celebration, but according to LVMH CFO Jean-Jacques Guiony, the current global climate may not inspire people to embrace festivities as enthusiastically, leading to less Champagne consumption. LVMH, the world's largest Champagne producer, boasts brands like Dom Pérignon, Krug, and Veuve Clicquot among its portfolio. The company made its foray into non-alcoholic sparkling wine by investing in French Bloom this year.
Due to economic challenges and evolving consumer preferences, Champagne houses are also focusing on greener farming practices. These sustainable initiatives could help attract customers eager to support environmentally-conscious brands. However, the region has been grappling with harsh weather conditions, with wine growers in 2021 experiencing the smallest harvest since 1957 due to extreme heat and early frost.
The food industry, too, has been impacted by inflation and economic uncertainty, leading some consumers to cut back on luxuries like fine dining and expensive wines, including Champagne. Recognizing this, some Champagne houses are shifting their focus to produce eco-friendly Champagne, appealing to consumers who value sustainability.
