Moet et Chandon is facing serious supply issues, the director of the Champagne house has revealed.
Moet Hennessy, the wine and spirits division of LVMH, has unveiled another successful quarter – with 2007 revenue growth to date up 13%, profits in Asia up 24% and rose champagne sales up 42%.
But in terms of supply of grapes, 'Yields are at a maximum and we will soon have our backs to the wall,' Frédéric Cumenal told French newspaper Les Echos.
He said limited space for growing vines was a problem, as well as small growers storing up to 100m bottles of Champagne in their cellars to limit tax bills and provide a source of income for their retirement.
Patrick Le Brun, president of the syndicate that represents small growers in the region, told decanter.com, 'We have an agricultural and not an industrial production. The big houses need to be more realistic about the ability to keep increasing grape supply over the coming years – there's only so much nature can give.'
He agreed that some growers were keeping bottles in their cellars, 'but the figure of 100m is far too high, and may be at most half of that. Everyone can do their part to ease these supply issues. Firstly, we need to change the fiscal regulations – to lower the taxes paid on stocks of champagne and improve the retirement provisions offered to grape growers. The negociants also have to be more realistic about what they ask for.'
A new rule has been introduced in the region for the 2007 harvest. Growers must save any excess must in years of good supply to put onto the open market in years of limited supply, which should help ease problems.
A spokesperson at the Champagne Bureau said, 'Champagne is an AOC limited by its geographic boundaries – it's simple mathematics that tells us if demand continues to grow, we will have difficulties with supply.'
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Planting new vineyards on land previously not considered AOC-worthy and further increasing yields - Champagne is not exactly embarking on a risk-free strategy. I assume that the "new rule" mentioned is an increase in the yield allowed. As far as I'm aware, it's not possible to save GRAPES from one year to the next, and I'm somewhat surprised to read such a claim in a wine journal. The Champenoise are usually unwilling even to let their grapes wait a few hours for transport all the way to the winery, so most producers have a number of press houses throughout the region, in closer proximity to the vineyards. The grapes are rushed there to be pressed as soon as possible, and are then transported to the winery, in the form of grape must. If you wish to store anything to even out the supply, it would either have to be vin clair (the base wine for champagne, also known as reserve wine when it has been aged) or the finished product. Both call for suitable storage space and will bind capital.
Tomas Eriksson, Stockholm, Sweden
It's strange to me that Champagne houses by and large have not begun exploiting the best new potential sources of high-quality raw material--albeit not for Champagne, but for good bubbly. That's most likely other cool-climate regions capable of producing material amenable to the classic method, inside and outside France. Much expansion for new bubbly has gone into places proven to grow good Chardonnay for table wine--not at all the base material needed.
My understanding of what's needed is Chardonnay and Pinots noir [and, perhaps, meunier] that are transparent to the local geology and that have very limited varietal character. There's little interest in California in planting vineyards for this purpose. Of course, other grapes can also be used.
Cool-climate vineyards of proper geologic structure haven't been exploited for anything but low-to-middling quality juice because Champagne makers are threatened by the idea that non-Champagne French bubbly might be better than some Champagnes, and a a related xenophobia, typically looking down their noses at anything that is not theirs.. It's time to get past these emotional blocks to getting better wines for the future. They don't start overnight, and years of lead-time are needed.
Where do the readers think that better raw material might be produced, especially when we're now convinced that the globe is warming? Southwestern Pacific islands (New Zealand, Tasmania); South America's high-altitude lands; the Northern tier of US states, including Alaska perhaps, the British Isles, areas of Europe north of the present warm regions, China, Siberia, Japan's north? Perhaps mountainous areas where climates are warm near sea-level? Areas affected by cold currents in the ocean? I'd like to know what you think. Perhaps there are some worthy experiments already under way or even in production that some of us know about. For instance, the northern Lake Michigan shore where strongly lake-affected climate in limy areas are making some nice stuff already. One thinks of places also like Michigan's Northern Peninsula, places like the Garden Peninsula, west of Escanaba.
John Trombley, Piqua, OH, USA
Irony can often be found comparing news pieces in any given week: this weeks news features pieces on both 5pound supermarket loss-leaders and overall grape shortage! The industry will provide Champagne at whatever price points/quality the trade (and ultimately consumers) demands of course, with each producer having the choice to concentrate on volume or quality. Lately we've seen polar opposites in the 5pound advent along with the luxury luxury labels! This may carry on for some time, but erudite and informed Champagne consumers know the best and best value wines are somewhere in between; under the radar, its ever been thus.
Regan Hawkins, New Zealand
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Planting new vineyards on land previously not considered AOC-worthy and further increasing yields - Champagne is not exactly embarking on a risk-free strategy. I assume that the "new rule" mentioned is an increase in the yield allowed. As far as I'm aware, it's not possible to save GRAPES from one year to the next, and I'm somewhat surprised to read such a claim in a wine journal. The Champenoise are usually unwilling even to let their grapes wait a few hours for transport all the way to the winery, so most producers have a number of press houses throughout the region, in closer proximity to the vineyards. The grapes are rushed there to be pressed as soon as possible, and are then transported to the winery, in the form of grape must. If you wish to store anything to even out the supply, it would either have to be vin clair (the base wine for champagne, also known as reserve wine when it has been aged) or the finished product. Both call for suitable storage space and will bind capital.
