CHAMPAGNE REDUCES YIELDS FOR 2020'S HARVEST TO COPE WITH DISRUPTION

Champagne struggles with declining sales by reducing yields to an extent that will be sufficient to manage costs and protect the Champagne image.

When there was a delay in announcing the Champagne yield limits there was a speculation of a possible rift among the regional body that controls the Champagne appellation – called the Comité Champagne. – it was expected that the amount of grapes that could be harvested to make the famous fizz would be set.

All decisions taken by the Comité must be agreed upon by the two key actors in Champagne: the growers and the houses (as the brands are known in the region), and their needs are diverging.

The growers, who are now able to charge on average around €6 per kilogram of grapes, want yields to remain similar to previous recent levels of more than 10,000kg/ha to provide them with enough money to cover the high costs of managing vines in Champagne and an income (based on an average vineyard size in the region of 3 hectares).

The houses, who have to pay for the grapes, make the wine, and market it around the world, don’t want an abundant supply of bunches as it will lead to oversupply and a resulting price depreciation, with a knock on effect on the upmarket positioning of Champagne. As a result, they are pressing for a limit of 6,0007,000kg/ha (which is around half of what the region is expected to naturally produce from this year’s harvest).