Competitiveness of Cool Climate Regions in
Global Wine Markets
A comparison between Champagne and the
United Kingdom
Stephen Skelton MW
Comparison between Champagne and UK
Differences
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•
•
•
•
•
•
Location
Climate – maximum temperatures & days over 30°C
Cost of land
Planting densities & pruning systems
Yields
Sugar and acidity levels
Price of grapes
Regulations
Wine quality?
France or England?
Comparison between Champagne and UK
Geography
Epernay is 207 km
(128.5 miles)
further south than
Plumpton
The Aube region is
328-km (204-miles)
further south than
Plumpton
Epernay is 214 km (133 miles)
from the sea.
Comparison between Champagne and UK
Geography
Champagne stretches for 154
km (98 miles) north to south.
Area in production is
approximately 33,762 ha
16,000 growers own 90% of
all vineyards
320 Champagne ‘maisons’
produce 66% of production
and 90% of all exports
Champagne by grape variety
Pinot noir 38%
Meunier
32%
Chardonnay 30%
Comparison between Champagne and UK
Production
Kent
327-ha West Sussex
East Sussex 234-ha
Hampshire
229-ha
Surrey
129-ha
Essex
108-ha
Devon
76-ha
Gloucestershire
50-ha
297-ha
Dorset
58-ha
Oxfordshire
36-ha
Suffolk
36-ha
Channel Islands
30-ha
• Average annual productionCornwall
(2013-15) of all28-ha
wines is 5.28 m x 75 cl bottles.
Approximately 2/3 sparkling,
1/3 still
Herefordshire
27-ha
• UK has around 470 commercial
vineyards
135 wineries. Production of
UK Total
area and1,956-ha
sparkling wine is currently around 3.50 m x 75 cl bottles.
Comparison between Champagne and UK
UK has approximately 1,100-ha of
Champagne varieties:
• Amount of UK sparkling wine currently
available for sale is approximately 1.5 –
2.0 m bottles.
• Amount of UK sparkling available for sale
is likely to rise to 5 m by 2020 and 8 m by
2025. Volumes depend on lees ageing
times & non-vintage production.
Chardonnay 475-ha (43%)
Pinot noir
475-ha (43%)
Meunier
120-ha (11%)
Pinot noir Précoce 30-ha (3%)
Hectares of Chardonnay, Pinot noir, Meunier and Pinot noir Précoce in UK vineyards 1990 - 2016
Variety
1990
1999
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Chardonnay
20
34
36
49
91
120
180
202
249
285
304
327
375
425
475
Pinot noir
32
44
49
62
85
121
185
218
248
258
278
305
360
425
475
Meunier
6
8
10
14
23
27
32
49
53
56
58
69
76
100
120
Pinot noir Précoce
0
0
0
0
0
8
15
17
18
20
20
20
22
28
30
Total of above
57
87
95
126
198
277
412
486
568
619
660
721
833
978
1,100
% of total area
6%
10%
12%
16%
21%
28%
37%
40%
43%
45%
46%
48%
53%
54%
56%
Other varieties
872
785
666
668
725
715
694
729
756
765
777
782
732
835
856
Total UK area
929
872
761
793
923
992
1,106
1,215
1,324
1,384
1,437
1,503
1,565
1,813
1,956
Source: Wine Standards Branch of the Food Standards Agency, UK Vineyards Guide 2016
2014-2016 Estimated
Comparison between Champagne and UK
average temperatures
East
Month Malling Epernay
Jan
3.9
2.1
Feb
4.3
3.2
Mar
6.3
6.7
Apr
8.8
9.7
May
12.0
13.3
Jun
15.3
16.5
Jul
17.2
18.3
Aug
16.9
18.0
Sep
14.6
15.5
Oct
11.0
10.7
Nov
7.1
6.2
Dec
4.8
3.3
Average temperature around 1.5°C more in Champagne than the south of the UK
Comparison between Champagne and UK
maximum temperatures
East
Month Malling
Épernay
Jan
6.8
5.1
Feb
7.2
6.7
Mar
10.0
11.8
Apr
12.7
15.1
May
16.4
19.1
Jun
19.9
22.3
Jul
21.8
24.1
Aug
21.5
23.8
Sep
19.0
20.9
Oct
14.8
15.3
Nov
10.3
9.4
Dec
7.6
6.1
Champagne has 15 days per year of 30°C or more. The UK has 1½ days per year.
Maximum temperature around 2.5°C more in Champagne than the south of the UK.
Comparison between Champagne and UK
Land prices – Vine density – Establishment costs
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Land prices
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Vine density
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Champagne – €1.0 - €2.5 m (£0.8 - £2.0 m) per hectare (planted)
UK – Bare land £30,000-ha. Planted £75,000-ha
Champagne – 8,000 vines –ha (1.1 x 1.2 m)
UK – 4,200-3,800 vines-ha (2.00 x 1.20 m & 2.20 x 1.20 m)
Establishment costs
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Champagne - ???????
UK - £22,000 - £30,000 per ha
Comparison between Champagne and UK
Sugar and acid levels in Champagne
Chardonnay
Pinot Noir
Average sugar and acidity levels in UK
Alcohol 8.0% to 10.0% Acidity 11.0 – 15.0 g/l
Alcohol 8.5% to 10.5% Acidity 10.0 – 12.5 g/l
Comparison between Champagne and UK
Yields
Yields in Champagne
Year
Kilos per Ha
Hectolitres
1996
10,356
64.73
1997
9,402
58.76
1998
12,926
80.79
1999
12,989
81.18
2000
12,580
78.63
2001
10,990
68.69
2002
11,972
74.83
2003
8,256
51.60
2004
13,990
87.44
2005
12,992
81.20
2006
12,997
81.23
2007
14,243
89.02
2008
14,228
88.93
2009
12,280
76.75
2010
10,903
68.14
2011
0.00
2012
0.00
2013
0.00
2014
0.00
2015
0.00
Average yields in Champagne
Average yields in UK 2006-2015
75.00 hl-ha
21.58 hl-ha
Comparison between Champagne and UK
Yields
Yields per vine
Champagne
14,500 kg-ha and 8,000 vines-ha = 1.81 kg-vine
20,000 kg-ha and 8,000 vines-ha = 2.50 kg-vine
UK
Average of good producers
5.0 tonnes-ha (2.0 tonnes-acre) = 1.25 kg-vine
Top quartile of good producers
9.0 tonnes-ha (3.64 tonnes-acre) = 2.15 kg-vine
UK must increase yields to improve producer’s financial sustainability
• Site selection - altitude, exposure, chalk?
• Rootstocks – low-medium vigour such as 41B, 420A, 3309C, 101/14,
RGM, 161/49?
• Row spacing – 1.75 m row width
• Vine density – 0.80 – 1.00 m intervine distance = 7,142 – 5,714 v-ha
Comparison between Champagne and UK
Changes in Champagne over last 30 years
• Use of herbicides is reduced increasing cost of growing grapes
• Fewer days below freezing which might be reducing yields
• Earlier harvests with higher sugars and lower acid levels
• Higher CO2 levels advancing grape maturity
• Chardonnay ripening far faster than previously
• Wines require little of no enrichment (chaptalizing)
• Less harvesting time. 8-10 days rather than 21 days
• Larger number of pickers required and increased picking costs
Comparison between Champagne and UK
Prices of grapes
Average price of grapes in Champagne
€ per kilogramme
Average price of Chardonnay and Pinot noir
2006 €4.81
in the UK
2007 €5.11
2008 €5.40
£1,500 - £2,500 per tonne
2009 €5.25
£1.50 - £2.50 per kg
2010 €5.36
2011 €5.60
2012 €5.73
2013 €5.80
2014 €5.89
2015 €5.89 (£4.65)
Price of grapes in Champagne has been forced up by larger producers paying
more in an attempt to reduce number of very cheap wines on the market.
Comparison between Champagne and UK
Costs of production
Lidl – May 2016
Cost of production per 75 cl bottle
Grapes €5.89 x 1.20 kg
= €7.07
Pressing, fermentation, bottling = €1.20
Riddling, disgorging, labelling etc = €1.20
Total cost
= €9.47
Price of Champagne
Sur latte €7.30 - €7.50
Managing Director of the Centre Vinicole
Champagne Nicolas Feuillatte,
March 2016, Drinks Business
Riddling, disgorging, packaging,
transport, and – profit.
Lidl £9.99 less VAT & Excise Duty
= £5.65 or €7.18 per bottle
Comparison between Champagne and UK
Prices of wine
Price of UK sparkling wine
Waitrose Cellar lists
27 UK sparkling wines at £16.99 £40.00 per bottle.
Average price = £25.99
Average DPD price to producers
£12.00 less :
Excise Duty £2.67
Grapes
£2.40
Production costs £5.00
Balance
£1.93
Less establishment costs, stock
finance, storage charges = PROFIT
France or England?