It may be a fixed area devoted to essentially one style of wine, but Champagne is a highly dynamic region.
Indeed, one of the main reasons for Champagne’s sustained success is the fact that the appellation is always changing, both adapting to forces beyond its control, and innovating to keep its consumers enthused and its competitors at bay.
With this is mind, I’ve picked out what I believe are the top 10 developments taking place in Champagne, based on the trends of 2023 and the first half of this year. Some of these concern the market, others the product.
Overall, it is clear that the quality of Champagne being made today is better than it has ever been. The incomes earned by this bounded region have been put towards improving viticulture and winemaking, while climate change appears – in this century at least – to have been mostly kind to Champagne, which has benefitted from a string of fantastic vintages – even if last year’s bountiful harvest was, for the most part, best-suited for creating brut non-vintage – as well as for replenishing reserves – rather than top-end, single-harvest wines.
1. Normality resumes
Now the shipment figures have been released for 2023, it’s clear that the post-pandemic party is over. Or rather, normality has returned to Champagne trading. As the numbers show, Champagne has retreated to its pre-pandemic size of around 300m bottles. Having suffered the declines of 2020, then enjoyed the bounceback in 2021, followed by the boom in 2022, which led to shortages among producers – and price increases for consumers – it’s now back to where it was in 2019 – volume-wise, that is.
Those times when Champagne was unable to supply global demand, and hence was ‘allocated’, also ushered in a brief era when price promotion on this sought-after product almost disappeared.
But, as a sign that the selling of Champagne is back to its past form, price-cutting has returned. As a result, major retailers in key markets such as the UK and France were offering attractive discounts on Champagne to their shoppers in the run-up to Easter – a way to boost income for supermarkets, but also to shift excess stock from the festive period.
Having said that, what is different is that the off-promotion prices for Champagne are much higher than they were pre-Covid. The price increases that were pushed through in 2023 and then again at the start of this year have not been reversed, even if the discounting is back.
As a result, the days of cheap Champagne, such as bottles selling for sub-£15 in UK retailers, appear to be over.
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2. A repositioning occurs
With Champagne becoming increasingly expensive – a function of rising grape prices, but also of higher interest rates, along with the increasing cost of dry goods, energy and labour – the entry point of the category is no longer cheap.
This shift has required a repositioning from the producers of Champagne’s most inexpensive expressions – who are having to divert pricier grapes to high-value cuvées while, in some cases, discontinuing their most affordable labels, even if they once sold in high volumes.
Such a development has been witnessed in Champagne’s domestic market in particular. For example, Christophe Juarez, who is CEO of Champagne Nicolas Feuillatte, told db that 2023 had seen the discontinuation of the brand’s base-level Brut Sélection and the launch of the more premium Grande Réserve, resulting in a 25% fall in sales volumes for what is France’s best-selling Champagne, with a 40% share of Champagne sales in the country’s retail sector.
“We decided to reboot our strategy in the off-trade and premiumise our offer, which meant a 15%-20% increase in our price position, as we moved from the bracket of less than €19 a bottle to €24,” said Juarez.
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3. Arabia provides hope
Rather than dwelling on areas of decline, the Champenois are always on the lookout for new sources of demand. Such a search seems to be taking them into new regions, as the established markets appear stable at best.
One area of the world showing promise for Champagne is the Arabian Peninsula, which may at first seem unlikely, considering the severe restrictions on the sale and consumption of alcohol, but changes are taking place.
Already, however, the United Arab Emirates (UAE) has softened its stance on alcohol, and Champagne seems to be benefitting. With almost 90% of the 11mstrong population being expatriates, there is a fairly sizeable Champagne market in the country...
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