Recent news headlines have mentioned shortages of various sorts for some time but now a new, unlikely, good seems to be running out of stock: Moet Hennessy is starting to run out of stock for some of its most popular champagnes. Clearly something that seems at odds with the many recession fears people seem to have. LVMH so far doesn’t seem to feel the economic pinch just yet. Third quarter sales of EUR 19.8bn were up a staggering 19% over the same period last year.
In an interview with Bloomberg, Philippe Schaus, CEO of Moet Hennessy said the “are running out of stock” for their most popular champagne brands. He even went so far as to say that the current period is internally described as the “roaring 20s.” Part of the problem is still a result of the COVID-19 pandemic. In 2020, the CIVC (Comité Interprofessionnel du vin de Champagne) which determines the limits of champagne production every year, cut the limit by 25% as lockdowns and stay at home orders were in full swing. Demand, however, continued to soar and soon the result was a supply/demand imbalance. Supply also cannot be increased very quickly because by law, champagne must remain 15 months or more on its lees. Unfavorable weather in 2021 didn’t make the situation for champagne makers such as Moet Hennessy better.
With the festive season coming up, it is unlikely that the situation for Moet Hennessy and others will improve any time soon. As a result, we may soon see prices for bottles in shortage increase rapidly. So if you still need to buy bottles as Christmas gifts or just replenish your own stock, you should do so sooner than later. For 2023, Moet Hennessy’s CEO Schaus did however expect some improvement in the situation as there is more supply for next year coming online.
Cover Image courtesy of Moet Hennessy
