Champagne sales declined sharply in 2024 with a notable decline of 9.2% in French Champagne shipments because of economic uncertainties in the US and French markets. The French Champagne has always been a symbol of luxury and class. However, it is going through a significant downturn as sales have declined to their lowest point in over 20 years.
Maxime Toubart, president of the Syndicat Général des vignerons and co-president of the Comité Champagne said, “Champagne is a real barometer of the state of mind of consumers. 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.”
Champagne Sales Declines Amid Uncertainty
France and the US are the major markets of French champagne, and changes in customer moods have led to a dip in sales. The customers are inclined towards cheaper alternatives like English sparkling wine, Cremant, and Prosecco. These products have improved their quality and managed to be budget-friendly, increasing their sales. Additionally, younger generations like Gen Z are cutting off alcoholic drinks for alternatives like mocktails and cannabis, declining global champagne sales.
In France, champagne sales fell by 7.2% with 118.2 million bottles sold in 2024. The Comité Champagne said this drop was due to the “gloom” spreading across the country, worsened by political instability. In December, François Bayrou, a long-time centrist ally of President Macron, became the fourth prime minister in a year, reflecting the growing crisis in a divided parliament.
Champagne Production Faces Challenges
The French Champagne decline in sales has forced producers to take severe steps. In July 2024, producers mandated the reduction in grapes harvesting as sales dipped by 15% in the first half of 2024. Full-year shipments reached 271.4 million bottles, down 9.2% from last year. After a post-pandemic spike in 2022, when shipments hit 326 million bottles, the trend has been dropping, with 299 million bottles shipped in 2023, an 8% decrease.
Climate change has made things more complicated for champagne producers. The 2024 harvest in France’s Champagne region was hit by frost and heavy rain, causing mildew to spread on the vines. These weather challenges have added to the pressure on an already struggling industry.
Alcohol Stock Prices Slide
Recently, Alcohol stock stumbled as US surgeons claimed alcoholic drinks are harmful and a major cause of cancer. He released an advisory asking for “cancer-causing” labels on alcohol. US Surgeon General Vivek Murthy warned in an advisory that drinking alcohol raises the risk of breast, colon, liver, and other cancers.
After the advisory release, Shares of Jack Daniel’s parent company, Brown-Forman, dropped 2.5% to $36.25, their lowest point since April 2017, while Molson Coors, maker of Coors Light, fell by 3.4%. Constellation Brands, the maker of Corona beer, fell by less than 1%, while Boston Beer dropped 3.8%, its largest decline since last February.
In Europe, the stock of the world’s largest spirit maker, Diageo dipped by 3.9%. Brewers were also affected as Budweiser maker Anheuser-Busch InBev dropped 2%, while Heineken and Carlsberg fell between 0.8% and 1.8%.
