French champagne producers are feeling the effects of China’s imposition of tariffs on luxury goods from the EU, leading to a decrease in sales and a plan to slash grape harvests in 2024. Champagne sales have already dropped by more than 15% in the first half of the year, prompting producers to lower the maximum yield level for grapes harvested this year. Adverse weather conditions, including excessive rain, frosts, and heatwaves, have affected this year’s harvest, but the use of stocks from previous years may help salvage the champagne supply. The French champagne committee has also announced new changes to employment rules for seasonal workers, focusing on industry guidelines and health and safety practices, as well as efforts to attract more workers.
In addition to these challenges, Chinese tariffs on EU luxury goods are further impacting producers such as Pernod Ricard and Moet Hennessy. The ongoing trade war between the EU and China, along with economic uncertainties worldwide, including higher interest rates, inflation, and geopolitical tensions, have made consumers hesitant to spend on luxury items. Despite these challenges, the French champagne committee is hopeful that their new measures and support from the government will help maintain the excellence of the champagne appellation.
Source
Photo credit www.euronews.com