Belt-tightening affects us all during a cost-of-living crisis, but some waistlines are more generously proportioned than others.
Thus, conventional wisdom tells us that the fine wine is inflation-proof; wealthy buyers aren't going to stop quaffing Krug just because of a relative dent in their millions, are they
How little we knew. Sales of the fine and rare, according to sommeliers and distributors, have taken a nosedive; a nasty succession of macroeconomic and geopolitical shocks has weakened demand from both ends. On the one hand, buyers are having to trade down due to surging costs and, on the other, consumers are spending less freely when compared to the start of 2022. The post-lockdown euphoria, it seems, has been well and truly snuffed out.
"There’s evidence that consumers are turning to alternatives, such as sparkling wines – Champagne has certainly dropped off and consumer perception of Prosecco is becoming disassociated from quality and value for money," says Tom Bennett, customer marketing manager, Hallgarten & Novum Wines.
"My buying strategy has changed significantly in 2023: certain regions and appellations are simply becoming borderline unaffordable," agrees London-based sommelier Beatrice Bessi. The only solution is to look at new styles and countries. Champagne inflation is a pertinent example of this trend. "I now have three crémants on my lists, however, six months ago I didn't have any at all. But some of the asking prices have become untenable."
Indeed, the transition from expensive bubbles to (relatively) affordable bubbles is a recurring theme among customer-facing sommeliers.
"I do believe there is a growing thirst for better value fizz. There are so many less widely recognized but creditable alternatives to Champagne that offer Champagne quality, but not the price," opines sommelier Stuart Bond. "Most English sparkling wines can knock many Champagnes out of the park," he adds with a touch patriotic fervor. Meanwhile, several of the luxury behemoths, including LVMH, reported a slowdown in sales in the first half of 2023, highlighting "softer" demand in the US.
"In the past couple of years, there has been a big question mark raised for Champagne, as the border of Champagne can't be moved, and it is a time-consuming wine to produce," says Lucas Reynaud Paligot, assistant head sommelier at Hélène Darroze at The Connaught, London. "There are crémants in many regions in France which are higher quality, aged for longer, and boast a great value for sparkling wines. Surprisingly, we did a blind tasting with the guys from Champagne, and found that the wine that really blew us away was one from England. In addition, Italy's Franciacorta is becoming higher and higher in quality and uses the same method as Champagne."
A new approach
It's a similar story in other venues – this realignment is affecting everyone from Michelin dining to hipster wine bars. There will, of course, always be room for overpriced Chambertin and Champagne at the world's leading restaurants; the rich can be at tad derisory about "this great-value, fruity little number from the Jura".
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