Vintage 2020: Crisis and Opportunity in Champagne
The year 2020 is unprecedented, and some wine regions are paying the price: the Champagne is going through an unprecedented crisis. While the 2020 harvest began on Monday, August 17, authorized yields have been drastically limited. Representatives of the winegrowers and wineries Champagne They agreed to reduce the 2020 harvest yields to 8,000 kilos per hectare. Nevertheless, this decision presents an opportunity for the region!
COVID: The Champagne a victim against his will
Due to the COVID-19 health crisis, in 2020, the Champagne expects to sell 100 million fewer bottles than in 2019. The shortfall is estimated at €1.7 billion. This decrease can be explained by several factors:
- Exports to the United States, the United Kingdom and China have almost completely stopped.
- New US tariffs, Brexit, and the political crisis in Hong Kong are adding to the unprecedented context of the health crisis.
- While exports account for approximately three-quarters of the region's sales Champagne, These are down by 25% to 30% in 2020.
- Wine tourism has almost come to a standstill in all wine regions since foreign tourists are no longer visiting the cellars.
- The closure of restaurants, bars, and gathering places, as well as the cancellation of events, have brought consumption to a standstill. Champagne.
In short, the French and global populations don't seem to be in the mood for sparkling wine. Faced with declining consumption, stocks of Champagne are abnormally high: there are 1.4 billion bottles in stock!
However, producers know this: they will only be able to sell what the market is willing to buy.
A very good 2020 vintage in Champagne
The region Champagne limits its production in order not to overload its stocks and prevent the risk of a drastic drop in prices.
However, the grape harvest is promising! The harvest is early thanks to the warm summer days and cool nights. The grape pickers will have no trouble selecting quality bunches of grapes.
During this period, between 100,000 and 120,000 people work in the vineyards of Champagne. Fortunately, the movement of foreign seasonal workers is not restricted. They represent about a third of the workforce.
However, the situation can change from day to day, and the grape harvest is taking place under unprecedented conditions. Health protocols are in place at every stage of the picking process. From transport and grape reception to the vats, the kitchen, and accommodations, everything is being done to guarantee maximum safety.
The region had no trouble finding workers. With the early grape harvest, students were still available. Furthermore, after weeks of lockdown, the desire to be outdoors seems to be benefiting producers.
The production potential is 12 to 16 tonnes per hectare. With the decrease in annual yield, a significant quantity of grapes will remain on the vine. In a way, this will allow for the selection of only the finest bunches for a 2020 vintage that promises to be absolutely exceptional!
Quantity or quality, a difficult choice
In Champagne, A single yield is imposed on all winegrowers. At 8 tons per hectare, the négociants, who buy 80% of the production, are guaranteed a break-even year. However, for independent winegrowers, this quantity will not be enough to earn a decent income and remain viable. The interests of the négociants are protected, but the Federation of Independent Winegrowers and its 400 members know that some producers will face significant financial difficulties.
The yield is reduced and could be further reduced depending on sales of champagne In 2020, of the 8 tons of grapes harvested, 1 ton will be used depending on market demand in 2022. The winegrowers are therefore guaranteed payment for 7,000 kilos in the worst-case scenario and 8,000 kilos in the best-case scenario, depending on how the economic situation evolves. This decision is unprecedented!
At the winegrowers' and houses of Champagne, So now is not the time for celebration. Champagne The region is already preparing to be the wine region most affected by the health crisis. Hope lies in the very promising quality of the 2020 vintage. To support the region's producers, we need to rediscover the desire to raise a glass of this delicious wine.