The demand has collapsed, the warehouses are full. Because of the corona pandemic, much less champagne is being drunk. That is why the producers want to reduce the harvest volume significantly. The winemakers are angry.
The corona crisis does not stop at the French champagne industry: While the pandemic is causing a sharp drop in sales, winemakers and producers are fighting bitterly for the harvest for this year. An end to the dispute over the legendary sparkling wine from the eastern French region of Champagne is not in sight, despite the ever-closer harvest start.
The big producers with brands such as Veuve Clicquot or Pommery insist on a significant reduction in the amount of grapes harvested, which must come from the specially designated champagne growing area around the city of Reims for the luxury drink, which is coveted around the world. The reason: Demand has plummeted dramatically.
The Vintners Association SGV, however, warns that the livelihoods of the winegrowers could be at stake. 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 Mutigny, 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.
Crisis meeting planned
"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.
Meanwhile, the UMC producers' association is complaining about full warehouses and expects an unprecedented drop in sales of 100 million bottles this year – 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.
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 rapprochement, the national supervisory authority INAO would ultimately make a decision – "a game of dice" for both parties, warns Beaulieu.
.