Why France's champagne bubble has burst

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Why France's champagne bubble has burst
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Coronavirus: France's champagne industry goes flat amid pandemic

"Covid has left everything reeling," says Bernard Beaulieu, a champagne producer and former head of the CGT Champagne winegrowers union."The fall in sales is staring us in the face. It's hastened a crisis that, if you ask me, has been a long time coming."

These tensions will likely come to a head at a meeting on 18 August, when a decision must be made on how many champagne grapes each of the roughly 15,000 growers is allowed to put on the market. Uniquely in French wine, the champagne region follows a"single-yield" rule. This means all growers, or vignerons, agree to sell only a fixed amount of grapes per hectare. Any surplus is left to rot in the field or is turned into a refrigerated"reserve" for use in case of poor future harvests.There is always haggling between the growers and the négociants - the 300 or so dealers who buy up grapes for the prestigious champagne houses such as Bollinger, Krug and Mumm.

But the vineries want a bigger yield of around 8,500kg. The union representing them says this is the minimum amount that would allow the growers to stay financially afloat. It is less worried about unsold stocks and says the current exceptional conditions are too good to miss.

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