05/01/2021
Don’t call it a comeback
Like (literally) every industry, COVID-19 has left their mark and affected everything from growth, profits, and most importantly, jobs. The champagne industry is not immune to those effects. Lockdowns have caused little to no weddings to take place. A reduction in visits to restaurants, and almost zero parties has “fatally wounded” the industry. “Producers in France’s eastern Champagne region, headquarters of the global industry, say they have lost an estimated 1.7 billion euros in sales for this year, as turnover fell by a third, a hammering unmatched in living memory, and worse than the Great Depression. They expect about 100 million bottles to be languishing unsold in their cellars by the end of the year” (Yahoo News reports).
Producers will need to destroy or sell their grapes at a drastically reduced price to avoid excess production and cause bottle prices to plummet. But remember, “night is darkest, just before the dawn.” A recent survey from Drizly showed that 61% of retailers expect to stock more Champagne and sparkling wine in the next one to three years. According to the article from Cathy Huyghe of Forbes, “this is a 180 from earlier this year, when many proclaimed Champagne fatally wounded.” Additional positive sentiments were shared by Caroline Henry, in her blog post on Wine-Searcher. “After fearing the worst, Champagnes growers and producers are feeling cautiously optimistic as we enter a new year.”