CHAMPAGNE SHORTAGE TO BURST BUBBLES
AUSTRALIA’S insatiable thirst for pricey French champagne during the pandemic is about to have some costly consequences.
Low stock supply, increased freight costs and record demand has led to what one industry veteran describes as a “once in a lifetime” global shortage, with Australia – given its low market share and geographical position – set to cop a large chunk of the fallout.
Already some brands, including high-end favourite Ruinart (owned by luxury goods giant Louis Vuitton Moet Hennessy) has disappeared from shelves across the country with doubts it will return to the market before next year.
Other brands under the LVMH banner, including Veuve Clicquot and Moet, as well as Mumm (owned by Pernod Ricard), are also projected for significant price rises in coming months as French producers move to restrict supply from October. In lockdown-hit 2020, Australia recorded the highest growth in champagne sales in the Western world – up
11.2 per cent, placing it now at No.6 globally for consumption. In fact, Australia was the only country to buck the trend of falling sales, with the US, Japan and the UK all recording huge drops in imports last year.
“So while we are a small market, globally speaking, we are still a very important one,” said Shane Richardson, chief executive at Laundy Hotels. But Mr Richardson said a “perfect storm of factors” – slow exports, slow production in France and peak global demand – could see Australians facing major bubbles shortages for the foreseeable future.