By Gary Hewitt, Sommelier( ISG, CMS), CWE

BOOM, BUST, BOOM

The rise and fall of Champagne sales follows the ups and downs of economic fortune. In boom times we enthusiastically indulge and in bust times we despondently abstain.

Boom! Champagne’ s modern boomand-bust cycle began with the onset of La Belle Époch in the economic heyday of the 1890s. The Golden Age of Champagne was born on the rising wealth of the Industrial Revolution’ s nouveau riche, a new class characterized by conspicuous consumption and demand for luxury, Art Deco, the art of Toulouse- Lautrec, the music of Offenbach and the sparkle of Champagne. By 1910, Champagne sales reached record levels.

Bust! Then came a series of unfortunate events. Poor harvests encouraged the production of fraudulent wines made outside the region. To protect Champagne producers, the French government legislated boundaries for the region. However, the inclusion of the“ inferior” Aube region caused riots in the streets of Épernay; then a government flip-flop to classify the Aube vineyards as second-rate caused riots in the Aube. Battle lines were drawn, Marne producers aligned against those from the Aube; 40,000 soldiers were dispatched to avert civil war!

The downward plunge of Champagne’ s fortunes gained momentum when, in early September 1914, Reims and Épernay fell to the Germans, only to be retaken by the French. Again, battle lines were drawn and a 4-year siege played out among trenches surrounding the Montagne de Reims. The shelling of Reims started with the systematic destruction of the Reims cathedral and lasted more than 1,000 days. In Vintage: The Story of Wine, author

Hugh Johnson expounds:

“ Astonishingly, the champagne industry went on, even in this beleaguered barracks. More astonishingly still, the growers continued to tend their vines even among the trenches that criss-crossed the northern slopes of the‘ mountain’ overlooking the city. They crawled like infantrymen through the white mud of winter to prune, and in the golden days of October they ran out to harvest with their usual songs”( p. 441).

Meanwhile, on October 17, while Champagne remained a battleground, the Russian Revolution overthrew the Czarist regime, a regime that consumed more than 10 per cent of Champagne exports, and immediately halted shipments and refused to pay outstanding bills— ouch!

Boom! The Roaring 20s: with the war over, prosperity returned, as did reasons for celebration. Despite Prohibition, bootleggers increased Champagne sales in the U. S. market. Times were good.

: by 1933 the cellars of Reims and Épernay contained 33 years of stock, and when 1934 brought a big harvest, many houses refused to purchase grapes, grape prices plunged, and growers suffered. WWII soon followed and German troops occupied Champagne from May 1940 until August 1944. The crafty Champenois prepared cellars for the occupation by successfully hiding many great wines behind false walls and, while under occupation, convinced

My only regret in life is that I did not drink more Champagne.— John Meynard Keynes

the Third Reich to establish the CIVC( Comité Interprofessionnel du Vin de Champagne) to administer the Champagne region. The CIVC exists today as one of the most powerful inter-professional wine organizations in France.

Post-WWII recovery was slow and sales rose and fell over a period of disputes and internal French crises only to be followed by the oil-crisis bust of 1974, and the surging-markets boom of 1989. Then, in 1993, Champagne dipped to an historic low. Internal bickering, restructuring of grape pricing, the Gulf War and economic hardship put 30 Champagne houses on the brink of financial ruin with another 30 reporting financial losses and record amounts owing to banks. Bleak times indeed, but salvation was on the horizon: the year 2000, the turn of the millennium— a time to celebrate.

Although millenium sales did not meet expectations and retailers needed the next year to reduce stocks, Champagne sales once again surged. Rap stars promoted sales to new consumers, certain brands’ stock soared, and life was rosy.

But then … bust. The sub-prime mortgage crisis of 2008: do you get the picture? And yes, Champagne sales are currently rising; the great houses have maintained their prices and an aura of positivity is growing. Doubtless, the Champenois, masters of cyclical markets, will continue to ride the ups and downs, and by all indications we will be along for the roller coaster ride, celebrating when times are good and longing for the return of good times when times are tough. � www. banvilleandjones. com 31