HOARDING CHAMPAGNE PRODUCERS HURT GLOBAL SUPPLY

An increased global demand for champagne may eventually lead to a shortage, with the British being the first to miss out. Reportedly, vineyard owners in eastern France are refusing to sell tens of millions of bottles and opting instead to keep them as a future investment. As a result, some of the more prestigious champagne houses are having trouble keeping pace with rising demand in the US and emerging markets in Asia and Russia. This could come as good news for sparkling wine producers if champagne prices go up and are harder to come by.

Global sales have risen from 287 million bottles in 2002 to 321 million in 2006. They are likely to reach 330 million this year, with exports to Russia growing by 39 per cent, to China by 50 per cent and to India by 125 per cent. But only 32,600 hectares of vineyards are authorized to produce the grapes for champagne.