France’s Champagne Producers Call for Grape Harvest Cut

PARIS (Reuters) – France’s champagne producers on Friday called for a cut in the number of grapes harvested this year after sales of the wine fell more than 15% in the first half of the year as customers tightened their belts due to an uncertain economy.

Champagne shipments in the first half of 2024 reached 106.7 million bottles, down 15.2% from a particularly high level recorded over the same period of 2023 and closer to the level in 2019.

“The gloomy global geopolitical and economic situation, as well as generalised inflation, is weighing on household consumption. Champagne also continues to suffer the consequences of overstocking by retailers in 2021 and 2022,” David Chatillon, chairman of the Champagne Houses lobby, said in a statement issued by the producers association, the Comite Champagne (Champagne Committee).

The committee stated that this year’s harvest in Champagne faced poor weather since the start of the year, including frosts and wet weather that increased mildew fungus attacks in its vineyards.

It set a maximum yield of harvested grapes at 10,000 kg per hectare, down from 11,400 kg/ha in 2023.

Unlike other wine production, most champagne bottles consist of a blend of several vintages, using stocks from previous years. These stocks are replenished during good years, compensating for poor harvests.

This isn’t the first time the region has faced severe losses due to frosts and mildew damages; in 2021, the yield decreased by 25% compared to the five-year average, resulting in a harvest that fell to a 35-year low.

Harvesting is expected to begin around September 10-12 on average. Unlike last year, the committee did not provide full-year forecasts for sales and exports.