Champagne Shipments Decline Amid Economic Uncertainty in 2024

PARIS (Reuters) - French champagne shipments fell by nearly 10% last year as economic and political uncertainties hit consumers' appetite for the sparkling wine in key markets such as France and the United States, the producers association said.

Producers had called in July for a cut in the number of grapes harvested this year after sales fell more than 15% in the first half of 2024. Full year shipments were down 9.2% from 2023 at 271.4 million bottles, the Comite Champagne (Champagne Committee) said.

"Champagne is a real barometer of the state of mind of consumers," Maxime Toubart, president of the Syndicat General des Vignerons and co-president of the committee, said in a statement late on Saturday.

"It is not time to celebrate given inflation, conflicts across the world, economic uncertainties and political wait-and-see in some of the largest Champagne markets, such as France and the United States."

The French market made up 118.2 million bottles, down 7.2% compared to 2023, which the association put down to prevailing economic and political "gloom" in the country.

President Emmanuel Macron appointed Francois Bayrou, his fourth prime minister in a year in December, but his administration remains weak, and still faces an uphill battle to pass the 2025 budget that led to the ouster of his predecessor, Michel Barnier.

Champagne exports also fell, with just 153.2 million bottles shipped, down 10.8% compared to 2023.

"It is in less favourable periods that we must prepare for the future, maintain our environmental (standards) trajectory, conquer new markets and new consumers," said David Chatillon, co-president of the Champagne Committee.

The committee said in July that the 2024 harvest in the Champagne region had suffered from poor weather since the start of the year, including frosts and wet weather which increased mildew fungus attacks in its vineyards.

As opposed to other wine production, most champagne bottles are a mix between several vintages, using stocks from previous years. These stocks are replenished during good years and can compensate for poor harvests.

(Reporting by Sybille de la Hamaide; Writing by John Irish; Editing by Helen Popper)