Why does champagne cost more than wine?
The price difference between Champagne and wine
First of all, remember that champagne is a type of wine. However, it is a wine with a complex production process. So the first reason is the cost of producing champagne, which is higher than that of still wine: manual harvesting, winemaking techniques (which involve a great deal of processing), the price of the grapes – the price is then set by the CIVC (the major Champagne houses buy most of the grapes they need, which are amongst the most expensive grape varieties in the world) – and the ageing period (a minimum of 18 months, but usually longer) partly explain the cost of a bottle of Champagne.
However, most sparkling wines made using the same method cost two to three times less. There are therefore other reasons for the higher cost of Champagne, linked to its reputation and global renown, and to the marketing, promotional and advertising expenditure that helps to create and maintain this reputation
This is particularly true of the major brands. Since the 19th century, one of the key objectives of the great Champagne houses has been to shape the image of their wines: Champagne is a festive drink par excellence, a drink associated with collective and personal rituals, and an expression of savoir-faire – luxurious and refined, ‘à la française’. The result is two centuries of success and a supply that struggles to meet demand, as Champagne comes from a defined territory (just over 30,000 hectares).
The impact of this image and this market mechanism on costs cannot be ignored in the case of Champagne.
