Champagne vineyards near Reims.

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FRANCOIS NASCIMBENI / AFP

  • Representatives of the champagne industry presented their 2020 results on Tuesday.

  • Sales were down 18%, a “dark” year according to representatives.

  • However, there was no “social break-up”.

For the champagne industry, 2020 was, unsurprisingly, a much less festive year than the previous ones.

With the coronavirus epidemic that has made tourists leave and reduced the opportunities to party, traffic jams have jumped less.

According to the report presented on Tuesday by the representatives of the sector, the “Champagne Committee” *, sales fell by 18% last year, with 245 million bottles sold.

"It's a dark year," says Jean-Marie Barillère, president of the Union of Champagne Houses (UMC), since this drop represents one billion euros in lost turnover.

Nevertheless, he believes that the profession has raised the bar at the end of the year: “At the time of the harvest, sales were down by 25 to 35%.

So finishing at -18% is better than we had expected at the time ”.

Export is resisting a little better than France

This jump is due to very good sales in September, but also at the time of the end of year holidays.

“There were still meetings with family or friends to water, such as birthdays or Christmas, explains Maxime Toubart, president of the General Syndicate of Winegrowers (SGV).

Champagne remains the symbol of the celebration, even if it is done differently ”.

In detail, the French market, with a decline in sales of 20% compared to 2019 (114 million bottles sold in 2020), is doing a little worse than exports, down "only" 16 % (131 million bottles shipped abroad).

Limited production

Despite this difficult year, “there was no social breakdown or bankruptcy in the sector [which directly employs 27,000 people], rejoices Jean-Marie Barillère.

Some companies are doing better than others, but the decisions we have taken have made it possible to maintain the value of champagne and not to sell off the product ”.

These “decisions” relate in particular to the yield of the vineyards, set each year by the Champagne Committee.

High yield means abundant production, low yield the other way around.

In 2020, it was set at 8,000 kilos per hectare (compared to 10,200 kg in 2019).

This limitation in production should make it possible not to inflate champagne stocks too much.

Indeed, if the latter are too high, this could lead the houses to sell their bottles at a lower price in order to empty the cellars, and therefore to “sell off” their product.

Hardly conceivable for a sector which intends to keep a certain image of rarity and prestige.

"Return to conviviality"

For the future, the Champagne Committee is not too worried.

“The rebound will take place with the end of the health crisis and the recovery of the events sector,” indicates Jean-Marie Barillère.

The return to conviviality is a major point ”.

“I am quite optimistic, continues Maxime Toubart.

There will be a desire to meet again, as at the end of a war.

I believe that everyone will want to have a good time with their friends, their family.

We were surprised by the decrease, we can be surprised by the increase ”.

* The Committee brings together the champagne “houses” (Bollinger, Dom Pérignon, Taittinger, Ruinart, etc.) and the winegrowers.

The houses buy the bulk of the production from the winegrowers (who own 90% of the champagne vines), before managing the blending of their different vintages themselves, and marketing them.

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