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Seth Rotherham
  • Drama Over French Laws Restricting Discounted Champagne

    14 Feb 2020 by Seth Rotherham in Alcohol, France, Lifestyle, Partners, Rupert Wines, Vibe
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    Our average reader would no doubt be aware that only sparkling wine from the Champagne region of France, can call itself Champagne.

    Everyone else has to call it ‘sparkling wines’, or those who make it in the same way as Champagne, can call it ‘MCC.’

    This stands for Methode Cap Classique, which must use only the finest grapes and requires a second fermentation in the bottle to create the sought after bubbles.

    That aside, it should also be known that the French are pretty progressive with their laws. Like the one during the recession that reduced taxes on dining out because, you know, just because the world is collapsing doesn’t mean they should be denied a meal and a bottle of wine!

    So anyway, there was another law introduced in France just last year that limits the size (and volume) of the discounts supermarkets can give on Champagne. One of the great perks of grocery shopping in Provence, I can tell you.

    The current promotions cap is 25% (of stock can be discounted), and no discount can be more than 34% – to avoid two-for-one specials. God forbid.

    Not so smart this time, it seems.

    From The Drinks Business:

    While the law was introduced to protect the livelihoods of French farmers by ensuring them a fair price for their products from the biggest buyers in the country – which are the major supermarket groups such as Carrefour, Leclerc and Auchan – the Loi EGalim has actually had a negative impact, as the lack of deals has reduced the volume of sales for key national products such as Champagne, particularly in the run up to Christmas.

    No ways! So you’re saying the restrictions on Champagne discounts resulted in less sales? It sure did – to the tune of some 4,5 million bottles of Champagne for 2019.

    They reckon the disaster will result in an imminent softening of the laws, removing the limits of peak Champagne-purchasing times of year, such as Christmas, Easter and my birthday.

    The discount limit of 34% is expected to remain, but not the 25% of stock volume limit.

    Paul-François Vranken, chairman of Champagne’s second biggest group, Vranken-Pommery Monopole, did admit that there had been a positive outcome from the act.

    He explained, “While I don’t agree with the fact that the economy can be constrained by a law, I do believe that the effects of the law are positive [for Champagne], because it has brought back the value of the product in the consumer’s mind.

    “The consumer didn’t have the right value of the product with all the buy-one-get-one-free promotions that were running in France, so [the 34% limit on the price reduction] brings back the real value of Champagne,” he said.

    However, he also said that it was “very important” to remove the “25% volume-maximum” because “you must allow the consumer the pleasure of a good deal, and if you don’t, then they might not buy the product, and choose something else.”

    L’Ormarins Brut MCC

    Indeed – and luckily for us here in South Africa, we’re able to get the same quality, for far less. With L’Ormarins Brut taking the Sunday Times’ top spot a few years back, it’s nice to know you can get the best for around R150.

    And on the subject of discounts, it’s a little known fact that you get 10% off all Rupert Wines if you join their wine club. That’s right – everybody I know does it. It’s surprising that you don’t.

    I suppose you don’t subscribe to the FT Weekend either? Stop, it, that’s enough.

    We’ve hooked up a special 2ov discount on FT Weekend for discerning readers.

    SPECIAL OFFER

    • 12 Month Subscription
      R3 150
      50 copies @ R63 (30% discount off subscription cover price of R90)
    • 6 Month subscription
      R1 575
      25 copies @ R63 (30% discount off subscription cover price of R90)

    Email Bradlee Louw at louwb@timesmedia.co.za, with the subject “Hook me up with 2oceansvibe’s FT Weekend special”, and he will do the rest.

    Have a grand weekend.

    [source:drinksbusiness]

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