Specialists predict a historic decline in the champagne sector
The crisis caused by the covid-19 pandemic has brought down several sectors of the beverage and bar industry. In this case, champagne, a drink with an ever-present rhythm, saw its sales fall by 80% in France. And also abroad, an important field for the drink as it is where half of its sales take place. Not to mention that the closure of bars, restaurants and cafés around the world had to close, ergo, fewer sales.
As a result, the champagne sector is predicting a historic decline this year, that is, a third, or 100 million unsold bottles. This drop is equivalent to a lack of revenue of 1.7 billion euros.
But what is the future of post-pandemic champagne? We know champagne as a drink to celebrate, for banquets and special occasions. Certainly the current situation has left large numbers of people unemployed and in low spirits. Therefore very few people would be interested in buying champagne as usual.
Wine producers fear that a price war is coming for all unsold bottles. This means less margin and in turn this would have consequences on the image of champagne. We know that it is a drink that is defined as a high-end product because of its price.
However, before the crisis, the champagne sector was competing with “younger” and less expensive drinks such as Prosecco, the ideal companion for summer cocktails. Several communication campaigns had been deployed to rejuvenate the image of champagne and show its different uses both in cocktails and in the kitchen.
The champagne sector generates almost 3 billion euros in exports. “France does not have much in the way of export strength. Champagne is one of them. And it must remain so.” Axel de Tarlé reiterates.
Don’t drink and drive. Enjoy responsibly.
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