logo
Trump's tariffs threaten to take the fizz out of Champagne's crucial US market

Trump's tariffs threaten to take the fizz out of Champagne's crucial US market

Reuters2 days ago
VERZENAY, July 18(Reuters) - Champagne producers in northeastern France need to find new markets after U.S. President Donald Trump threatened 30% tariffs on EU exports, the chairman of a French industry group said, suggesting Brazil, Southeast Asia and South Africa as options.
The U.S. is the biggest market for champagne with 10% of champagne exports by volume and 15% by value and producers say the tariffs will push up prices for consumers and threaten jobs all along the supply chain, including in the United States.
"The repercussions for all family champagne exports will be severe because it will mean lost income from bottle sales, which will also affect the grape harvest quotas we will be allowed to collect," said Stephane Vignon, whose family has been producing Champagne in Verzenay since 1946.
With 70% of champagne sales currently concentrated in just five countries, tariffs should push producers to seek new markets, said Maxime Toubart, chairman of industry group Comite Champagne (Champagne Committee).
He said France's cognac industry, which is mainly reliant on exports to China and the U.S. where it could also face duties, provides a cautionary tale for champagne producers on the need to diversify.
But replacing U.S. sales is not easy, he said.
"We can't just say we'll sell three million fewer bottles in the U.S. and put them in Japan instead. So actually, there is no alternative today to this fall in volume," he said.
Total champagne exports fell more than 10% last year but rose slightly in the first four months of 2025 ahead of a 10% tariff in April, farm office FranceAgriMer said.
"If tomorrow the 30% tariff is implemented, I think it will definitely impact the relationship," said Hugo Drappier of the Drappier Champagne house. "We've always managed to build a relationship of trust with our clients through the quality of our wines ... Let's hope that relationship isn't broken."
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

First McDonald's took French cities — now it's the new village café
First McDonald's took French cities — now it's the new village café

Times

time3 hours ago

  • Times

First McDonald's took French cities — now it's the new village café

Home to barely 3,000 people, the village of Saint-Geniès-de-Malgoirès in the south of France has a fine 17th-century church and narrow picturesque streets lined with stone buildings. Since this spring, it can also boast its own branch of McDonald's. In the country that invented haute cuisine, it is part of a drive by the American fast-food giant, which already has 1,560 French branches, to expand beyond its traditional sites in cities and out-of-town commercial centres. Fifty new outlets are due to open this year and, for the first time, many are expected to be in small rural communities. 'McDonald's has become a bit like the village café,' says Jérôme Fourquet, director of the opinion and business strategy department of Ifop, a leading French pollster. For the leaders of such communities, the chain's arrival means much needed jobs. In Saint-Geniès-de-Malgoirès, it has become the biggest employer. 'They plan to hire 40 people,' Jean-François Durand-Coutelle, the mayor, told local media several months before the opening. 'As per my request, local people will be given priority, especially the young and those trying to supplement their pensions.' For many in the restaurant business, however, McDonald's foray into la France profonde is yet another blow to the country's proud culinary tradition. 'We are losing our soul. The local authorities should stop this,' fumed Alain Fontaine, president of the French Association of Master Restaurateurs. 'Tourists will arrive in a 13th or 14th-century village, see the renovated fountain and church and magnificent walls, and then right in the middle of the square there will be a McDonald's — the same McDonald's they can find in Coventry, Northampton, New York or Milan. What's that all about?' • Foodie breaks in France French eating habits have changed dramatically since the first 'McDo', as it is known by fans and foes, opened in the Paris suburb of Créteil in 1972 — two years before the chain established a bridgehead on the other side of the Channel in Woolwich. It has long since been joined by other well-known fast food brands such as KFC, Burger King and Pizza Hut. These days there are also countless other burger, chicken and kebab joints, as well as several chains selling 'French tacos', filled flour tortilla wraps that have little in common with their Mexican namesake. The French still spend more time at the table than anyone else in the world — 133 minutes per day, compared with 79 in Britain and just 62 in America — but they are more likely to be eating a cheeseburger and fries than a plate of magret de canard or beef bourguignon. For the first time in 2023, sales of fast food overtook that of traditional restaurant fare and now account for 55 per cent of the restaurant market. The young are its keenest consumers: 67 per cent of 18 to 34-year-olds say they eat fast food at least two or three times a month, according to a study on French eating habits published last month by the Fondation Jean-Jaurès, a think tank. Of dishes served in restaurants, 70 per cent contain chips. Alain Fontaine, 67, who also heads the Association of Bistros and Cafés, has witnessed the transformation of the French culinary landscape during his five decades in the restaurant business. His career actually began in Long Eaton, Derbyshire, to which he decamped as a football-obsessed 20-year-old who dreamt of playing for Brian Clough's wildly successful Nottingham Forest. Despite a few trials, he never made it into the team and found himself working at the Novotel. Haute cuisine it was not. 'This was the beginning of the era of the microwave,' he recalled. 'And the Irish chef spent most of the day in the bar.' For the past 23 years, Fontaine has run Le Mesturet (established 1883), near l'Opéra in Paris, which serves classics such as frogs' legs, foie gras de canard mi-cuit and blanquette de veau, all prepared and cooked on the premises. In the meantime, the surrounding streets have filled with Japanese restaurants: there are 765 of them across Paris, putting them in second place among foreign cuisines behind Italian restaurants, of which there are 1,876. The nearby Golf-Drouot, a celebrated venue where Johnny Hallyday and fellow legends of French music played in the 1960s and 1970s, is now a Five Guys. The latest challenge faced by French restaurateurs, Fontaine argues, is the growth of mid-market restaurant chains or groups that have long been common in Britain but have hitherto been a rarity in France. They are often founded not by restaurateurs but by entrepreneurs or financial groups, whose deep pockets mean they can afford the best sites and, thanks to their size, can drive down the price of the food they buy. 'We independent restaurants are in the same situation as grocers were 40 years ago when they were first faced with the supermarkets,' he said. 'Now we are the ones are going to disappear.' But Eloi Spinnler, 30, a prominent chef with 280,000 Instagram followers, wonders what the fuss is about. 'There have always been chains in France,' he said, citing old family favourites such as Léon de Bruxelles, Courtepaille and Buffalo Grill. 'The only thing that has changed is the new chains that have done well want people to eat well,' he added. 'Working well on social media is also very important.' Both aims apply to his own group, Bonaloi, which is due to open Envie, its third restaurant in Paris, in September. Back in Saint-Geniès-de-Malgoirès, the community seems delighted with their new McDonald's. Among the handful eating there on Friday was Noemi Diaz, who had driven for a few minutes from nearby Moussac for a late lunch with her husband and three-year-old son, who had disappeared to the restaurant's play area. 'The prices are good and my son loves the games,' she said. Despite Fontaine's concerns, the outlet lies not in the village's picturesque heart, but instead next to a petrol station in a commercial centre on its outskirts. This is deliberate, according to Yannick Augrandenis, a company spokesman: customers expect copious parking, while proximity to the road network means they can attract diners from the surrounding area. In the past, McDonald's was targeted by those opposed to globalisation — most notably by José Bové, a sheep farmer who became known around the world after he and a group of friends attacked one of its branches in Millau, 75 miles to the west, in 1999 in protest at a 100 per cent tariff slapped by America on roquefort cheese and other European products in a trade war. Although American tariffs are back on the table again, thanks to President Trump, the French see McDonald's differently these days, not least because three quarters of the food that goes into the two million meals its branches serve each day is sourced within the country. 'In nine out of ten cases we open new restaurants, we are welcomed,' Augrandenis said. 'In some cases it is even local landowners or local authorities who approach us.' Even if there is sometimes hostility, it quickly blows over. Any hostility that there might have been from Laurent Galonier, who runs Le Rendez Vous, a bar restaurant in Saint-Geniès-de-Malgoirès, is long gone. 'It has had no impact whatsoever on my business,' he said, as a group of regulars sipped pastis at the bar. 'It's also a positive thing,' he said. 'I used to have to drive to the McDonald's in Nîmes and by the time I got it home it was all cold. Now it only takes me a few minutes.'

First they took French cities — now McDonald's is the new village café
First they took French cities — now McDonald's is the new village café

Times

time9 hours ago

  • Times

First they took French cities — now McDonald's is the new village café

Home to barely 3,000 people, the village of Saint-Geniès-de-Malgoirès in the south of France has a fine 17th-century church and narrow picturesque streets lined with stone buildings. Since this spring, it can also boast its own branch of McDonald's. In the country that invented haute cuisine, it is part of a drive by the American fast-food giant, which already has 1,560 French branches, to expand beyond its traditional sites in cities and out-of-town commercial centres. Fifty new outlets are due to open this year and, for the first time, many are expected to be in small rural communities. 'McDonald's has become a bit like the village café,' says Jérôme Fourquet, director of the opinion and business strategy department of Ifop, a leading French pollster.

Xi, not Trump, has the most power over Putin. Will he use it?
Xi, not Trump, has the most power over Putin. Will he use it?

Times

time12 hours ago

  • Times

Xi, not Trump, has the most power over Putin. Will he use it?

P resident Trump seems finally to have lost patience with President Putin. On Monday he said that he was 'very disappointed' with the Russian leader and gave him 50 days to declare a ceasefire. But while Putin measures his response to the rhetoric from Washington (and he has given no indication of concern so far) Trump's actions have brought a third figure into the psychodrama — President Xi of China. And Xi is the one with most to gain. The Kremlin had feared Trump would be more forceful and a relieved Moscow stock exchange jumped sharply. Along with a desire to encourage Europeans to buy US-made weapons to support Ukraine (France, Italy and the Czech Republic have already declined), Trump's main initiative was to give Putin 50 days to end the fighting or he would turn to his favourite geopolitical instrument: tariffs.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store