Champagne Producers Urge Harvest Cut as Sales Plummet Amid Economic Uncertainty

France's champagne producers advocate for a reduced grape harvest after a 15% drop in wine sales during the first half of 2024. The fall is attributed to economic uncertainty and overstocking by retailers. Producers also cite poor weather affecting the year's harvest and set a lower maximum yield for 2024.

France's champagne producers on Friday called for a reduction in the number of grapes harvested this year following a more than 15% decline in wine sales during the first half of the year. The sales drop is attributed to economic uncertainty and customers tightening their belts.

Champagne shipments for the first half of 2024 totaled 106.7 million bottles, marking a 15.2% decline from the previous year's high levels, approaching 2019 figures. David Chatillon, chairman of the Champagne Houses lobby, cited the "gloomy global geopolitical and economic situation" and the effects of overstocking by retailers in 2021 and 2022 for the decline.

This year's harvest faced challenges from adverse weather conditions, including frosts and increased mildew fungus attacks. The maximum yield has been set at 10,000 kg per hectare, down from 11,400 kg/ha in 2023, with the harvest projected to start around September 10-12.

The current situation isn't unprecedented; similar losses occurred in 2021 due to frosts and mildew, leading to a 25% yield reduction from the five-year average. However, no full-year forecasts for sales and exports were provided this year.

(With inputs from agencies.)