Over the past 12 months, the prices of champagne bottles in France rose by an average of 7.3% and in the EU by 8.3%.
These price increases are partly due to higher production costs and are driven by the value appreciation strategy of major brands. This increase, supported by a consistently strong demand for champagne, especially in exports, is partly justified by the significant rise in production and operating costs.
The costs for winegrowing businesses have changed dramatically within a year. Prices for pesticides and fertilizers have increased by an average of 10%. Within two years, the increase is estimated to be 20%. Inflation not only affected viticulture supplies but also impacted all costs associated with the operation of winegrowing businesses.
Structural costs such as fuel, depreciation of equipment, and labor increased by approximately 12%. Within two years, the increase was estimated to be 23%. These additional production costs affected the 2023 harvest.
The price per kilogram of grapes was raised by 6 to 7%. The price for grapes averages €7.3/kg. For a 0.75-liter bottle, 1.2 kg of grapes are needed. The kilo of grapes in Champagne is considered the most expensive grape variety in the world.
In addition, there are price increases for dry materials such as labels, capsules, and neck collars, as well as for glass bottles, whose price rose by 30% in 2022!
And then there's the increase in transport costs between France and Germany, which explains the very high increase in the final price for many of our champagnes in 2023.
Source: L'Union Reims, 14.11.2023
