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Wine Spectator senior editor Alison Napjus provides professional analysis of inflation’s impact on wine and champagne prices nationwide on ‘Mornings with Maria.’
Champagne sales worldwide appear to have fizzled out in 2024.
The traditional toast to life’s celebrations like weddings, promotions, and even christening new ships appears to have fallen flat.
The CFO of luxury holdings company LVMH, which owns brands like Louis Vuitton and Moët et Chandon, believes it has to do with consumers feeling happy enough to celebrate.
On a Tuesday call covering earnings, LVMH CFO Jean-Jacques Guiony said, “Champagne is quite linked with celebration, happiness, et cetera,” according to Business Insider.
“Maybe the current global situation, be it geopolitical or macroeconomic, does not lead people to cheer up and to open bottles of Champagne. I don’t really know,” Guiony added.
A general view of Champagne glasses during The Mercury Prize 2023 awards show at Eventim Apollo on September 07, 2023 in London, England. (JMEnternational/Getty Images)
Champagne shipments in the first half of 2024 are down over 15% from 2023 levels, according to reporting from Reuters. Shipments in the first half of this year reached 106.7 million bottles.
“The gloomy global geopolitical and economic situation, as well as generalized inflation, is weighing on household consumption,” David Chatillon, Champagne Houses lobby chairman, shared in a statement from the Comite Champagne (Champagne Committee).
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“Champagne also continues to suffer the consequences of overstocking by retailers in 2021 and 2022,” Chatillon added.
Champagne grapes can easily suffer from mildew fungal infections in wet and frosty weatherwhich 2024 has had plenty of in the region.
A farm worker mows the lawn in the vineyards on May 18, 2024 in Savigny-sur-Ardres, Grand Est, France. In 2023, 299 millions bottles were shipped, mainly to the US, the UK and Japan. (Photo by Thierry Monasse/Getty Images)
Traditionally, poor harvest years like this one are replenished with vintages from previous years with higher yields of Champagne grapes.
In 2021, the Champagne region’s harvest suffered a 25% shed from poor weather, falling to a 35-year low.
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Louis Vuitton Moët Hennessy (LVMH), did not immediately respond to FOX Business’ request for comment.
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