by Sophie Kevany

Champagne sales to America in January 2008 fell by 33% compared to January 2007, as a result of the dollar’s fall in value against the euro, and general economic uncertainty in the country.

This follows a drop of 15% in sales volumes for the last three months of 2007 - or a million bottles less – and a 14% loss in value, compared to the same period in 2006, according to the latest figures from the Champagne Board (Comité Interprofessionnel du Vin de Champagne, CIVC).

“The impact of the American economic crisis has arrived sooner than expected in Champagne,” Ghislain de Montgolfier, president of the Union of Champagne Houses, (l’Union des maisons de champagne, UMC), told French media on 5 May.

“It is a real disaster, and the champagne houses are not sure what to do,” he said, referring to fact that since the 2008 sales contracts were discussed at the end of last year - when the euro was worth $1.40 - the dollar has now fallen to $1.60, making each bottle about 15% more expensive, and 25% more expensive than this time last year.

Producers are said to be handling the situation by reducing sales volumes to America, and importers by buying only in small quantities - palettes rather container loads.

Recently one Champagne producer, the Boizel Chanoine group - which includes seven different Champagne houses and is the second biggest Champagne producer after LVMH – also took the decision to close its Lanson Champagne office in New York, as of the beginning of this year.

“The American market is on a strong downward trend,” Boizel’s director, Bruno Paillard said at the time of the closure.

BCC announced on 6 May that its turnover for the first three months of 2008 fell by 32% on the same period in 2007. It says however this was due to an exceptional stock reduction in the first three months of 2007, which pushed turnover up by €35m.