The year of stabilization of the champagne market. This is the observation made by Charles-Armand de Bélenet, CEO of Champagne Bollinger. “Last year we had an exceptional year for Champagne, since after the Covid crisis we reached historically high levels and rather we are entering a period of stabilization,” he recalled in BFM Business.
But this basic trend has been attenuated by another fundamental movement in recent months, according to the representative of the prestigious house: “There have been increases in production costs and production costs linked to inflation, which has caused an increase in prices and has an impact today on the champagne market, especially in large distribution.
The American market in decline but Europe maintains activity
However, Charles-Armand de Bélenet denies having passed on all these cost increases despite significantly higher prices. “We reflect only part of the increase in costs,” he insists. The increase in the price of glass was 30%, the price of grapes increases by 10% every year. We reflect part of these costs and, automatically, it has an impact on demand and is stabilizing the champagne market.” Furthermore, this increase in the sales price “has no impact” on the sales of the Champagne Bollinger house, according to its general director “We are stable in volume and there is a slight increase in value,” he explains.
According to Charles-Armand de Belenet, champagne production capacity is close to the “natural ceiling”. “We have a production capacity limited by the Champagne designation of origin area that is controlled,” he emphasizes. We can’t produce much more than 310-320 million bottles. Last year we reached this historic level and today we will sell around 300 million bottles. of champagne, which corresponds to something quite healthy compared to what nature can offer us.
Source: BFM TV
