The Fizzle in Champagne Sales: A Look at the Decline in 2023

The Decline in Champagne Sales

Champagne sales have lost some of their pop in 2023 following a few record-breaking years of sales spurred by the end of Covid-19 lockdowns. Comit\u00e9 Champagne, a trade association representing more than 16,000 winegrowers and 320 Champagne houses, said in a new report that total shipments last year of bubbly from France fell to 299 million bottles, a decline of 8.2% compared to 2022. That marks nearly a return to pre-Covid levels in 2019, when 297.3 million bottles were shipped. During its peak in 2022, sales soared by 33%, when 325 million bottles were shipped. Although total shipments fell, the financial fortunes for many Champagne houses were less affected because they sold more expensive labels, thus enabling them to maintain their sales above \\u20ac6 billion ($6.6 billion) for another year, Comit\u00e9 said in a release. Sales also slumped by a similar figure within France, which accounts for Champagne's largest consumer base. Within France, shipments last year dropped by 8.2% to 127 million bottles because the country 'has suffered more from inflation, compared to export markets, which has weighed on household budgets throughout the year,' the association said. David Chatillon, the association's co-president, said 'the decline was to be expected, but with the value maintained, Champagne is still optimistic for the future, whilst remaining sensitive to the geopolitical context and the state of the global economy.'

Champagne sales have lost some of their pop in 2023 following a few record-breaking years of sales spurred by the end of Covid-19 lockdowns. Comit\u00e9 Champagne, a trade association representing more than 16,000 winegrowers and 320 Champagne houses, said in a new report that total shipments last year of bubbly from France fell to 299 million bottles, a decline of 8.2% compared to 2022. That marks nearly a return to pre-Covid levels in 2019, when 297.3 million bottles were shipped. During its peak in 2022, sales soared by 33%, when 325 million bottles were shipped. Although total shipments fell, the financial fortunes for many Champagne houses were less affected because they sold more expensive labels, thus enabling them to maintain their sales above \\u20ac6 billion ($6.6 billion) for another year, Comit\u00e9 said in a release. Sales also slumped by a similar figure within France, which accounts for Champagne's largest consumer base. Within France, shipments last year dropped by 8.2% to 127 million bottles because the country 'has suffered more from inflation, compared to export markets, which has weighed on household budgets throughout the year,' the association said. David Chatillon, the association's co-president, said 'the decline was to be expected, but with the value maintained, Champagne is still optimistic for the future, whilst remaining sensitive to the geopolitical context and the state of the global economy.'

Impact of Decline on Champagne Industry

The decline in Champagne sales has had a significant impact on the industry. Although total shipments fell, the financial fortunes for many Champagne houses were less affected because they sold more expensive labels, thus enabling them to maintain their sales above \\u20ac6 billion ($6.6 billion) for another year, Comit\u00e9 said in a release. Sales also slumped by a similar figure within France, which accounts for Champagne's largest consumer base. Within France, shipments last year dropped by 8.2% to 127 million bottles because the country 'has suffered more from inflation, compared to export markets, which has weighed on household budgets throughout the year,' the association said. David Chatillon, the association's co-president, said 'the decline was to be expected, but with the value maintained, Champagne is still optimistic for the future, whilst remaining sensitive to the geopolitical context and the state of the global economy.'

Challenges Faced by Champagne Industry

The Champagne industry is facing a number of challenges, including extreme weather events and changes in temperature that are making champagne grapes harder to grow. The region is also struggling with high heat and early frosting, which has resulted in wine growers in 2021 seeing their smallest harvest since 1957. This cost France a total of roughly $2 billion in sales, a recent report said. For LVMH Mo\u00ebt Hennessy, the biggest maker of Champagne and owner of premium brands like Mo\u00ebt & Chandon and Dom P\u00e9rignon, the hit was reflected in an October earnings report that encompassed the first 9 months of 2023. Its wine and spirits category was its only business group to register declines, falling 7%.

Extreme weather and changes in temperature are making champagne grapes harder to grow.