With the lockdown restrictions in place, many special occasions like weddings, parties, dining out, and international travel simply didn’t take place.
These social occasions are vital opportunities for champagne to be enjoyed and used for celebratory purposes. Many winemakers had no choice but to bring down the prices of their champagne to avoid large-scale spoilage. Should you jump on the trend to purchase your fizz at a bargain price?
The Crisis At Hand
France’s eastern Champagne region has reported a loss of $2 billion in turnover. This is a loss of epic proportions for the wine industries. It has also been estimated that about 100 million bottles would remain unsold; leaving them to languish in the cellars.
France’s Champagne Committee fears that this crisis will cripple the industry. The committee, who regulates the size of every annual harvest, has done its best to control excess production.
To manage the current losses, they’ve had to launch unprecedented damage-limitation measures that include selling their grapes to distilleries at a far lower rate, and an imposed cap on further production that’ll destroy massive quantities of grapes.
The Aftermath
It has been widely discussed to repurpose the use of champagne’s grapes as hand sanitizer, which is, to be frank, an insult to nature itself. The pandemic we face globally has resulted in a large-scale demand for this product, but is this really the route to take?
This sparkling wine has never quite faced such a catastrophe and with over one hundred million bottles that are rendered unsold, where does that leave the consumer?
To Buy Or Not To Buy…
The sharp decline in sparkling wine sales rounds up to 40%. This decline has caused a massive stockpile of product that has nowhere to go. This does present a unique opportunity to stock up on fizz if you can.
At some point, the marketplace should stabilize and in a larger perspective, price increases seem inevitable. Over the past decade alone, its price has increased by 13%.
The price of its grapes sells at $4 per pound. Therefore, you can expect an increase in the value of almost 80% in just 15 years as a wine collector. Despite the pandemic at hand, we can expect a price increase for these grapes within the next four to five years.
So while you’re at it, shop now to stock up for tough times or sell your collection at a much higher rate later on. It must be said that prices won’t sharply rise from one day to the next, so your bulk purchase on champagne shouldn’t be done in panic.
From an investor’s point of view, there’s reason to stock up on quality to help enhance your portfolio. In the long run, profit is something that is attainable. This is almost as inevitable as the aging of champagne, which ultimately increases its value.
The Flipside
The very essence of sparkling wine marketing (as a celebratory drink for parties and weddings) should undergo a facelift of sorts to blend in with the new normal. Producers will need to rethink their brand strategies.
For example, they should highlight the wine as a drink for all occasions.
Additionally, there are many winemakers who produce natural champagnes with no added sugars. This gives marketers the opportunity to showcase a new side to sparkling wine. Moreover, advertisements can be restructured to highlight the more cooperative and cautious side of production.
There’s a rising demand from consumers for organic and biodynamic viticulture. This might eventually have an impact on costs and quantities. As of now, only one-fifth of the vineyards in the Champagne region are certified as sustainable.
However, a goal has been set in place by the Champagne Committee to ensure that all fields are environmentally-sound by 2030.
Conclusion
Adaptability has served champagne well throughout the years. This trait will definitely help it evolve from celebratory dessert wine to a more revised modern-day version like a brut. These unprecedented times present a unique opportunity for you to invest some of the highest quality varietals at a bargain price.
To discover the best deals out there, check out champagnes clubs.
Life without fizz might not be the same. To help preserve this wonderful drink, it needs your support. In the meantime, the industry will need to shape its new approach to match the times we find ourselves in.