Champagne producers have also come under pressure in recent weeks, following China's decision to impose tariffs on the import of luxury goods from the EU.
ADVERTISEMENTThe French champagne committee, along with producers have suggested slashing the number of grapes harvested in 2024, following disappointing champagne sales, with customers unwilling to spend on luxury goods.
Champagne sales have already plunged by more than 15% in the first six months of the year, coming up to approximately 106.7 million bottles. As such, to protect producers from further losses, the maximum yield level for harvested grapes for this year has been fixed at 10,000 kilograms per hectare, down from 11,400 kilograms per hectare in the previous year.
The current harvest has already been impacted by adverse weather, with excessive rain and frosts causing issues such as mildew fungus which damages crops. In summer, heatwaves can often lead to violent storms.
However, this year’s champagne supply can still be salvaged due to most champagne bottles using many different vintages. As such, it is very common to use stocks from previous years, which are usually topped off during times of good harvests.
The French champagne committee also outlined new changes to employment rules regarding seasonal workers on Friday, including improved industry guidelines and health and safety practices, as well as pointers on how to attract more seasonal workers.
Regarding these changes, Mazime Toubart and David Chatillon, co-presidents of the Comite Champagne said in a statement: “All of the measures presented today are the result of the work carried out since October 2023 to develop this unprecedented and necessary action plan. We would like to pay tribute to the involvement of the government in our work, with the support of the French Minister of Labour, Health and Solidarity, Catherine Vautrin.
“The Comite Champagne has assumed its collective responsibilities by putting in place concrete tools. We are now counting on everyone’s support to ensure that individual practices match the excellence of our appellation.”
Chinese tariffs continue to weigh on luxury good producers
The escalating EU-China trade war started due to EU’s tariffs on imports of Chinese electric vehicles (EVs) is intensifying, with China having also threatened to impose retaliatory tariffs. These are being implemented on EU exports of luxury items such as brandy, wine and cognac, watches and handbags, as well as other items such as dairy and pork.
Producers such as Pernod Ricard and Moet Hennessy have already come under fire. Apart from this, the economic uncertainty being felt worldwide at the moment, with higher interest rates, soaring inflation and cost of living and geopolitical tensions have made people increasingly more hesitant to spend on luxury goods.
