Champagne Sales Plummet as California Sparkling Wines Gain Popularity

Champagne sales have hit a rough patch, experiencing their worst domestic year since 1985. In France, sales dropped by 7.2% to 118.2 million bottles, while international sales fell by 10.8% to 153.2 million bottles. Overall wine consumption is also declining, reaching its lowest since 1996, with 221 million hectoliters consumed last year, according to the Organisation of Vine and Wine's 2024 report. Despite these challenges, California's sparkling wine industry is finding opportunities to thrive.

California's sparkling wine history dates back to the 1860s, but it wasn't until the French influence arrived in the 20th century that the industry began to take shape. French producers like Moët-Chandon and Taittinger, along with American pioneers like Jack and Jamie Davies of Schramsberg Vineyards, helped establish a strong foundation for California's sparkling wine. Today, the state boasts over 10,000 wineries producing sparkling wine, up from 6,586 in 2003.

The decline in Champagne sales is partly attributed to rising prices, with a 10% increase between 2021 and 2023. This has led consumers to seek more affordable alternatives, such as California's méthode traditionnelle sparkling wines. These wines offer a similar style to Champagne but at a lower price point, making them more accessible to a broader audience.

Marika Vida, a sommelier and wine consultant, notes that consumers are increasingly turning to California sparkling wines because they offer great value. These wines are more affordable by the glass in restaurants and by the bottle in retail stores. As a result, they are becoming more popular among both casual drinkers and collectors.

Philana Bouvier, president of Demeine Estates, highlights the value that California sparkling wines provide. Her company has adjusted its marketing strategy to focus on what consumers and restaurants need. By offering reasonable by-the-glass prices, they are supporting struggling restaurants and making their wines more accessible. This approach has led to significant sales growth, with Racines wine sales up 433% year-over-year.

Sommelier Salvatore Castano observes that the rising cost of Champagne is prompting retailers and sommeliers to seek high-quality alternatives. California producers like Schramsberg, Domaine Carneros, and Roederer Estate are crafting exceptional sparkling wines using the traditional méthode Champenoise, offering great value without compromising on quality.

Melanie Schafer, general manager at Gloria Ferrer Caves & Vineyards, emphasizes the importance of balancing accessibility with exclusivity. Their Royal Cuvée Rosé, launched in late 2024, represents their commitment to innovation and quality. This new offering aims to attract both longtime fans and new consumers seeking premium sparkling wines.

While California sparkling wines offer value, some estates are also producing high-end lines priced similarly to Champagne. Domaine Carneros, for example, has seen growing interest in its super-premium lines like Le Rêve. CEO Remi Cohen notes that consumers are becoming more knowledgeable about traditional method sparklers and their versatility with food pairings.

Schramsberg Vineyards, a pioneer in California's sparkling wine industry, has been producing its super-premium J. Schram line since 1992. Despite the broader market challenges, the demand for high-quality California sparklers remains strong. Hugh Davies, president of Schramsberg Vineyards, acknowledges that while the market is not as robust as it once was, their niche offerings continue to attract dedicated consumers.

California's sparkling wine industry, though small compared to Champagne, is carving out its own space in the market. With a focus on quality, value, and innovation, California producers are poised to continue their growth, offering consumers a wide range of options to enjoy.