If it seems as if you haven’t had much to smile about recently, you are not alone. Difficulties that we are facing around the world have caused a variety of problems, including one that was unexpected.
According to a luxury goods company, LVMH, there has been a drop in sales of champagne this year. It is an unexpected phenomenon that is occurring because many people don’t have a reason to celebrate.
The lack of joy has been noted by the company’s chief financial officer, Jean-Jacques Guiony. Champagne tends to be a drink that we enjoy whatever we have something to smile about. They said it is often linked to “celebration, happiness, et cetera.”
“Maybe the current global situation, be it geopolitical or macroeconomic, does not lead people to cheer up and to open bottles of Champagne. I don’t really know.”
Some of the brands associated with LVMH include Dom Perignon, Ruinart, and Krug. Overall, a 15% drop in sales was seen in the first half of the year compared to the first half of 2023 according to a Business Insider report.
In the first half of 2024, they generated about €1.4 billion in revenue for the champagne and wine associated with their brands. This was down 12% from 2023.
Much of the drop in sales is associated with the European market but that may also be associated with frost and wet weather that affect the production of grapes.