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France’s Champagne houses lose €1 billion after sales plunge

Champagne sales plunged last year as coronavirus lockdowns stymied tourism and shut bars, hotels and restaurants, its trade association said on Tuesday.

France's Champagne houses lose €1 billion after sales plunge
Photo: AFP

Sales of the sparkling white wine fell by 18 percent to 245 million bottles worldwide, said the Comite Champagne that includes producers and distributors said.

“It was a dark year, but we managed the crisis by limiting output … and the end result is better than we feared in July,” said Jean-Marie Barillere, head of a union of champagne houses.

He estimated losses at around one billion euros less than in 2019, but cautioned that the numbers had not yet been finalised.

It was the first time in 50 years that exports fared better than domestic sales, Barillere added.

“This health crisis is not like other crises,” he said, before explaining that the drop in sales was not the result of falling consumer confidence in France for example.

Rather it was the loss of traditional outlets like bars and restaurants that had hurt the most.

Maxime Toubart, head of the main body of Champagne vintners, the SGV, added that in June they had anticipated a fall of 30 percent in sales, and hailed innovative efforts such as direct online sales for limiting the damage.

The sector decided in July to substantially limit production to support prices, and was able to maintain the product's value as a result.

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FOOD & DRINK

Does Beaujolais Nouveau wine deserve its bad reputation?

Beaujolais Nouveau wine suffers from a number of negative stereotypes - but are these rumours more fiction than fact?

Does Beaujolais Nouveau wine deserve its bad reputation?

Each year – on the third Thursday of November – people across the world celebrate one thing, and it is not Thanksgiving. It is the release of the Beaujolais Nouveau, a French wine coming from the east of France, south of the wine growing region of Burgundy.

The release of the Beaujolais Nouveau vintage brings with it lots of celebration – four days of it in the Beaujolais region itself. The vintage is then shipped far and wide for people to consume, more often than not at a very affordable price of just a few euros. 

READ MORE: Beaujolais Nouveau: 13 things you need to know about France’s famous wine

Unfortunately, however, the light, red wine also has suffered from a negative reputation. Critics (or perhaps just those who have drunk too many glasses) say it gives you a hangover, tastes terrible (apparently similar to bananas to some), and above all that it is low-quality.

But to Rod Phillips, wine expert and author of “French Wine: A History”, Beaujolais Nouveau is “young, fruity, bright, cheerful.” 

Phillips went on to say that it is “not a wine to discuss or contemplate,” but “that doesn’t make it bad wine. It’s different from structured, more subtle and nuanced wines.”

For Caroline Conner, sommelier and head of Lyon Wine Tastings, Beaujolais Nouveau is “really fun” and highly encourages people to give the wine a chance, particularly from local producers. 

You can hear Caroline Conner discuss Beaujolais Nouveau in the new episode of the Talking France podcast. Download here or listen below.

Conner explained the stories of Beaujolais Nouveau wine causing hangovers has nothing to do with the way the wine is made, or even how quickly it is produced –  using grapes that were harvested just a few months before being bottled. 

“It’s not about the technique, it’s because most of it is mass produced. Any mass produced wine is probably going to give you a hangover,” the sommelier explained. 

Of course hangovers also depend on how much you drink – of any wine.

According to Rod Phillips, the stereotype that Beaujolais wine is of poor quality stretches back hundreds of years.

“The region had a setback in the Middle Ages and took a long time to recover,” explained Phillips.

In 1395, the Duke of Burgundy issued an edict – grapes from the Gamay vine were “injurious to the human creature” and wine that came from them had “terrible bitterness.” He is even thought to have said that the vine itself was an “evil and disloyal plant.”

According to Phillips, this decree was in the Duke’s interest: “He was protecting pinot noir, which was used for Burgundy’s already-famous wines.

More and more producers were growing Gamay because it had a higher yield, so made more and cheaper wine. They appealed to the Duke to ban Gamay and he obliged in terms that produced an enduring belief that Gamay was an inferior wine.”

This impacted Beaujolais wine because it is produced from that same “disloyal plant” – the Gamay grape. It was not until after the second World War that Beaujolais red wine grew in popularity outside of eastern France.

In the 1970s and 80s, the wine had a surge in popularity, with the start of the Beaujolais Nouveau phenomenon, and the mass production of the wine to be cheaply sent across the world. 

Conner described Beaujolais Nouveau as a “big party” at that time, with celebrations from London to Japan. While it has decreased in popularity in recent years, the third Thursday of November remains an important date in the French calendar.

What about the other Beaujolais wines?

Both wine experts also pointed to the fact that Beaujolais Nouveau is not the only wine to come out of the region. 

“There are a lots of different tiers of quality,” said Conner, adding that the Nouveau only accounts for about 20 percent of production. “The rest of Beaujolais wine is quite different.”

Phillips echoed these sentiments, noting an improvement in quality for other “Beaujolais Crus.”

“More recently people have discovered the 10 Beaujolais Crus (Morgon, Chénas, Brouilly, etc.) which are a real step up in quality,” he said. “There’s a sense in which Beaujolais Nouveau was a drag on the high quality wines of the region because it was associated with inexpensive, easy-drinking wines.”

And as for Beaujolais Nouveau itself, “it’s not all cheap and mass produced,” according to Conner.

If you really want to enjoy a good Beaujolais Nouveau, the sommelier recommends going “to a good caviste or a good restaurant” and drinking wine that was made by a “small producer.”

How much should you spend to get a really good bottle? Conner suggests 20 euros believing you’ll get far more value for money if you spend that amount on a Beaujolais rather than a Burgundy – which you pay a premium on because of its famous name

“You’ll find some excellent value,” she promised.

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