There is something rotten in the SGV
An alternative on Hamlet soliloquy exposing the power struggles within Champagne's growers syndicate
Earlier this year, the Syndicat Général des Vigneron (SGV) celebrated its hundred twentieth anniversary. It was created at the beginning of the twentieth century at a time that grape growers were struggling to make ends meet while houses were exploding the sales. Fast forward to today, and it is clear that grape growers have transformed themselves from underdog to fat cats. Grape prices are at an all time high and the commercial appellations have been very generous the last few years, resulting in revenues exceeding € 100,000 per hectare depending on the sector. Houses on the other hand, have been experiencing more meager years. Champagne sales have been decreasing for fifteen consecutive months now, and double digit losses have been posted in the first five months of 2024. The MAT (moving annual total) is down 12.1% totaling a mere 282.5 million bottles. This is the second lowest annual sales figure since 2001, the lowest being the 244.1 million bottles sold during the lockdowns of 2020.
While a lot of wine sales have hit a slump, Champagne’s spectacular demise has been undoubtedly fueled by the many scandals emanating from the region this last year. There was the ‘fake” Chopin Champagne that hit the headlines in August, the dire working and living condition scandals resulting in 5 deaths and 2 modern slavery cases currently investigated by the Châlons-en-Champagne prosecutor, and the explosion of herbicide usage, in which growers conveniently ignored national regulations prohibiting blank spraying of glyphosate.
All scandals have been caused by greedy producers feeling all-mighty and untouchable, which may have been the SGV’s general attitude rubbing off on its members. Under Maxime Toubart, who in March was elected for a fifth consecutive term at the head of the SGV, and thus will remain the co-president of the Comité Champagne (CIVC) for another two years, the grape and wine growers syndicate has successfully pushed the limits of its power.
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