For many years the producers of champagne knew only sharply rising sales curves, now this French region is afraid of the fallout of the worldwide financial crisis.

Many champagne producers fear the worldwide financial crisis may send their sales figures into free fall. After all, it is not only on Wall Street that people currently have few occasions to celebrate, in other countries, too, the high oil prices, real estate crisis and other factors could bring about a general reluctance to open that next bottle of champagne. The first six months of 2008 saw a double-digit reduction in export sales to the USA, and in the United Kingdom and Spain, as well, the markets showed significant weaknesses. And this could just be the beginning...

At the same time, the champagne houses see themselves confronted by ever higher demands by their grape suppliers. Numerous supply contracts are up for renewal and thus re-negotiation next year. It appears the champagne houses are trying to take early preemptive action before the suppliers build up too much of an expectation. (WF)