Champagne producers are facing challenges due to China’s tariffs on luxury goods from the EU, leading to a decrease in sales and the suggestion of reducing grape harvest in 2024. Sales of champagne have already dropped by over 15% in the first half of the year, prompting the French champagne committee to set a lower maximum yield for harvested grapes. Adverse weather conditions have also affected this year’s harvest, with issues such as mildew fungus and storms impacting crops. However, champagne supply can still be maintained using stocks from previous years.
In response to these challenges, the French champagne committee has introduced new employment rules for seasonal workers, aiming to improve industry guidelines, health and safety practices, and attract more workers. The co-presidents of the Comite Champagne emphasized the importance of these measures and called for support to ensure the excellence of the appellation.
The impact of Chinese tariffs on luxury goods is also affecting producers of brandy, wine, cognac, watches, handbags, and other items from the EU. Companies like Pernod Ricard and Moet Hennessy are facing difficulties amid economic uncertainty, rising inflation, higher interest rates, and geopolitical tensions, causing consumers to be more hesitant to spend on luxury goods. The ongoing trade war between the EU and China is adding further pressure on the luxury goods industry, highlighting the challenges faced by producers in the current economic environment.
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