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Britain faces a champagne shortage because vineyard owners in eastern France are refusing to sell tens of millions of bottles stocked in their cellars.
Their unwillingness to give up what they see as their retirement nest eggs has left the country’s most prestigious champagne houses struggling to keep pace with a rise in demand in the US and developing countries.
Champagne experts say that producers will soon be unable to supply emerging markets in Russia, China and India as well traditional customers in countries such as Britain.
Patrick Le Brun, head of the union of champagne vineyard owners, said that Britons would be the losers in that case. “If there isn’t enough to go around, the producers will prefer the places where there is growth,” he said.
Frédéric Cumenal, president of Moët & Chandon, said: “The industry has always succeeded in coping with demand. Today, it’s no longer the case. Yields are at a maximum and we will soon hit a wall.”
The champagne industry is a victim of commercial success, tight bureaucratic regulation and the deeply conservative mentality of those who grow its grapes.
Global sales have risen from 287 million bottles in 2002 to 321 million in 2006. They are likely to reach 330 million this year, with exports to Russia growing by 39 per cent, to China by 50 per cent and to India by 125 per cent. But only 32,600 hectares of vineyards are authorised to produce the black grapes for champagne.
Experts say that the maximum number of bottles to be wrung out of the land is 350 million – and many even doubt whether this can be attained. They say that the region’s grapes are already being pushed to the limit as owners await official approval to plant more vines in 2017.
The problem could be solved if grape growers sold the estimated 100 million bottles in their cellars. But they are reluctant to do so. The average grower in the Champagne region owns just 2.5 hectares of land.
These small, independent vineyard owners supply up to 90 per cent of the grapes. Their bounty has accumulated over the years as they put aside about 10 per cent of their harvest to sell when they retire. Mr Le Brun said that the custom was ancient and unlikely to be overturned without significant cash incentives. “Agricultural pensions are very poor in France and a lot of these people will lose more than 50 per cent of their revenue when they retire. So they keep back some of their champagne to sell.”
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I love those Frenchies! Pig-headed, but possessors of such joie de vivre. I hope they drive up the price of champagne so they can all have a cushy retirement. They deserve it.
David Stone, Toronto,
Free market economics: supply and demand, concepts that baffle those great minds who work on the Today programme, will sort it all out.
Gervas Douglas, Andorra la Vella,
French peasant him very clever ug! him know how do max profit like opec ug! Why him need pander to English ug??
Because his new fair weather friends might not last into
an uncertain future and traditional markets may well have moved on, leaving the growers high and dry, as they were a century ago.
Mark Lyndon, London, UK
Loads of rubbish Thomas, Champaign is an enjoyable drink, that goes down well! It also doesn't add the same calories as beer! I enjoy a good smoke and a few glasses of champaign! mmmm!!
Adam Webb, MK, UK
Anyone ever tried Cava or Prosecco?
Will, London,
Two and a half hectares? Who would have imagined that in 2007 there would be farrmers in western Europe practically strip farming. In any other economy these plots would be conglomerated and intensified, leading to greater yield and lower overheads. Result: more champagne for consumers, more money for growers. Only in France do farmers cling to this closed pre-industrial model.
Anthony Charlton, Swindon,
Saumur is better than non-vintage champagne.
Drink that at a reasonable price.
Rdhead, Celles, France
Why should these guys part with their bottles ?? To keep prices (and profits) low on the british market while abandoning the markets of the future to competitors ?
What lies in their cellars would postpone the offer/demand discrepancy for a few years, not solve it. And those bottles are a much better investment for future retirees than any financial product (especially sub-prime derived stuff)
This strategy worked well for OPEC, smart management of a commodity in limited supply in order to maximize profit, why would peasant from Champagne give up potential profit to please anybody. As for the english, they have Nyetimber, so why do they want Champagne, after writing again and again than their own stuff is much better...
Phil, Shanghai,
Once again the French vineyards are shooting themselves in the foot. By refusing to expand with the times, only the very best will sell in the future. Chile, Spain and other producers will take over 90% of their markets. The quality is not there yet, but it soon will be.
Nick, Guayaquil, Ecuador
Gives me a headache.
Judy , Liverpool, england
Give me a Green Point sparkling wine from Australia any day over the over priced base level French champagnes. Just as good and cheaper because you don't have to pay for a French label.
A Jackson, London, UK
Could this be another error on behalf of French wine growers ?
There are many sparkling wine [ champagne by another name ] growers in the world, not least the one with a growing [ sorry about the pun ] in England.
If people just start to look around & stop being snobbish about the word ' champagne ' on the label, they can find stuff just as good in other countries.
France's loss could be someone else's gain , & frankly I hope it proves to be so.
Maggie Millington, Brittany , France
Perhaps this will push the price up enough that once again it will be for the exclusive enjoyment of us rich-folk.
Bill Akins, Rehoboth Beach, USA
Who cares ... Over priced and over rated .
Benzo, Nr Chelmsford,
Tis their stuff after all, they are workin hard for it, don't they?
Moreover, champagne is supposed to be a quality product, so don't expect producers to double their production - quality would disappear, wouldn't it?
Main problem is everyone wants to be/look rich by the same ways. Why don't they drink excellent whiskies or armagnac? Arr, lack of taste, yes. I had forgotten.
Thomas, Paris,