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If there isn't enough to go around, the producers will
prefer the places where there is growth -- developing
markets like India, says Patrick Le Brun, the Head of
the Union of Champagne Vineyard Owners.
Global sales rose from 287 m. bottles in 2002 to 321
m. in 2006, the year in which sales to India grew by
129%.
Parcels around the villages of Courcy and Montmirail
in the Marne -- home to 70 per cent of Champagne vineyards,
are on the new list, as well as Montgueux in the Aube
and Harricourt in the Haute-Marne, claims the report.
Wine producers have also enrolled geologists and historians
to determine whether the villages would be best suited
in terms of climate, soil and links to wine growing.
However, growers said that it would be hard to get
more than 350 million bottles from the land nominated
for the production of the sparkling wine. The vineyards
are unlikely to be planted until 2015, with the first
harvest in 2017.
Under French wine production rules, only 32,500 hectares
of vineyards may produce the region's three grape varieties:
Chardonnay, Pinot Noir and Pinot Meunier.
Details: http://economictimes.indiatimes.com
Editor's Note
Although there has been a continuous growth in the
sparkling wine consumption, the figure of 129% for Champagne
seems unjustified as the consumption figure, if one
looks at the sales figures of the individual importers
of Champagne. There have been a lot of promotional sales
and aggressive marketing during the last couple of years
and the figures may reflect the cumulative effect.
Besides, Spanish Cavas and Italian Prosecco and other
cheaper substitutes are waiting in the wings to cash
in on the bubbly boom. Not to overlook are the imports
of French sparkling wines like Bouvet Ladubay owned
by the UB group, which are being marketing very aggressively
at prices a mere fraction of the Champagne prices.
Not taking the eyes off from the superiority and the
established branding of Champagne, the regular increases
in prices, control of production and selling prices
will be negative factors for growth. If the recent increase
of customs duty from 100% to 150% is considered, the
duties have become even higher than before when the
ACD of 20% was leviable on these premium and expensive
wines and they cost more than ever before.
If Maharashtra government does not get off its high
horse, the sales to the hotels will be disastrous. There
is only so much that the bootleggers can handle-even
they must have their limitations!
Of course, the other emerging markets like Brazil,
Russia and China will have enough growth to offset any
miscalculation on the part of the vineyard owners and
remember-they are talking about the harvest in 2015!
In our current political scenario, No One Has Seen Tomorrow.
Needless to say, an annual aggregate growth of 30%
plus in the overall wine market is unstoppable like
our liberalised reforms ( I feel 60% is quite achievable
on our current low base). Whether Champagne can show
a 129% annual growth or even 29%, only time will tell,;
we have our reservations.
Subhash Arora
October 14, 2007
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