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Reading: Labor abuses, tariffs cloud the sector
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Stock Market

Labor abuses, tariffs cloud the sector

Editor
Last updated: December 31, 2025 9:41 am
Editor
Published: December 31, 2025
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Labor abuses, tariffs cloud the sector


Contents
  • ‘Blatant mistreatment’
  • Gross sales challenges

Bulgarian grape harvesters work within the vineyards of Chateau de Meursault in Meursault, within the Burgundy area of central-eastern France, on August 26, 2025. (Photograph by ARNAUD FINISTRE / AFP) (Photograph by ARNAUD FINISTRE/AFP through Getty Photos)

Arnaud Finistre | Afp | Getty Photos

It will come as no shock that gross sales of Champagne peak within the run-up to Christmas and New 12 months, with French fizz the drink of alternative for a lot of households within the festive season.

Yearly, round 120,000 seasonal staff come to work in France, harvesting grapes throughout 34,000 hectares of vines. The harvest solely lasts a few weeks, making it a frenetic time for the sector.

A darker aspect to the trade has emerged relating to that work, nevertheless, with current reviews shining a lightweight on the exploitation and mistreatment of champagne grape pickers who are sometimes international and undocumented migrants.

Throughout an excessive heatwave within the late summer time of 2023, at the least 4 migrant grape pickers, or “vendangeurs” as they’re recognized, died in what has since been dubbed the “harvest of disgrace.”

The case highlighted broader substandard working and housing situations for pickers, together with extreme working hours, low pay, an absence of security tools and protocols, corresponding to satisfactory hydration and breaks.

The scandal round working situations and welfare comes at a tough time for the broader trade — 2024’s harvest noticed decrease yields than common attributable to spring frosts and a wet interval through the summer time that solely subsided towards the top of the rising season, nearly “saving” the harvest.

The 2025 harvest fared higher and was lauded for its high-quality classic, because of clement climate situations.

Nonetheless, this yr’s gross sales, which will probably be launched in January, are prone to be additional dented by U.S. import tariffs on items from the EU, which precipitated Champagne shipments to the U.S. to stoop.

‘Blatant mistreatment’

The murkier aspect of the Champagne trade got here to gentle when at the least 4 migrant grape pickers died through the 2023 harvest, which came about throughout an excessive heatwave.

Seasonal staff harvest grapes in vineyards within the AOC (Appellation d’origine contrôlée) Champagne area on September 14, 2023 in Châtillon-sur-Marne, France.

Thierry Monasse | Getty Photos Information | Getty Photos

Then, in the summertime of 2025, three people had been placed on trial, accused of human trafficking and exploiting over 50 West African migrant staff through the 2023 harvest.

The victims reported being handled “like slaves” and “animals” and being housed in “hellish” and unsanitary situations with no clear consuming water. Such situations compromised staff’ security, well being and dignity, the labor inspectorate stated within the case.

Unscrupulous hiring practices had been additionally thrust into the highlight through the trial because the defendants had been affiliated with an employment company which supplied staff to the trade, highlighting Champagne homes’ widespread use of subcontractors and employment companies, or extra casual channels, to recruit grape pickers.

The defendants had been convicted and handed fines and jail sentences, whereas commerce unions stated the usage of “middlemen” and companies had enabled Champagne homes to show a blind eye to unlawful working practices.

In a abstract of the case which was held in Châlons-en-Champagne prison courtroom, the prosecutor commented, “we can’t settle for that behind a bottle of Champagne lies uncontrolled subcontracting and blatant mistreatment.”

Gross sales challenges

The Comité Champagne — the overarching commerce physique for France’s Champagne trade and representing over 16,000 winegrowers, 130 cooperatives and 370 Champagne homes — acknowledged that the courtroom case had broken the trade’s popularity and stated it will take a “zero tolerance” method to any future abuses.

“We needed to stand with the victims. You do not play video games with the well being and security of seasonal staff. Nor do you play video games with the picture of our appellation,” Comité co-presidents David Chatillon and Maxime Toubart informed Le Monde newspaper in July after the trial.

The Comité launched a “Collectively for the Champagne Harvest” motion plan to make sure that employee well being and security protocols and employee lodging had been improved, in addition to harvest rules.

A French Basic Confederation of Labour (CGT) union member palms out pamphlets to seasonal grape pickers, usually international staff, in a Champagne winery to tell them of their labour rights, in Igny-Comblizy, jap France, on September 19, 2024.

Francois Nascimbeni | Afp | Getty Photos

Champagne winegrowers and homes have been eager to indicate they’re dedicated to staff’ well-being. Moët & Chandon, the world’s largest producer and a part of LVMH, invested 1.5 million euros ($1.76 million) in new lodging for an additional 90 grape pickers in 2024, bringing the full capability of its lodging provision to as much as 1,900 beds.

CNBC requested the Comité Champagne whether or not welfare measures had been totally carried out by its member organizations since they had been proposed, however has not but obtained a response. CNBC additionally contacted a number of unions, together with the CGT labor union and SGV union of Champagne growers, concerning the reforms, however didn’t obtain responses.

It is little doubt a tough time for the broader trade — 2024’s harvest noticed decrease yields than common attributable to spring frosts and a wet interval through the summer time that solely subsided towards the top of the rising season — nearly “saving” the harvest. The 2025 harvest fared higher and was lauded for its high-quality classic, because of clement climate situations.

Synonymous with north-eastern France, Champagne accounts for 10% of the world’s glowing wine manufacturing by quantity, however as a lot as 35% of glowing wine’s world market worth.Nevertheless, gross sales have declined in recent times amid a fall in world demand and declining alcohol consumption.

In 2023, shipments of Champagne (that are sometimes a mixture of a number of years’ harvests) totalled 299 million bottles, down 8.2% in comparison with the earlier yr. In 2024, 271 million bottles had been shipped, in line with the Comité Champagne information. This yr’s gross sales face extra headwinds from U.S. import tariffs on items from the EU.

The trade has additionally confronted challenges from inside, with the CGT labor union at LVMH’s Moët & Chandon and Veuve Clicquot’s champagne items calling on staff to strike in December over the cancellation of year-end bonuses and calls for for higher pay.

A spokesman for Moët & Chandon informed CNBC that it will not touch upon the dispute however that negotiations over pay would happen in early 2026, noting, “we can’t remark earlier than the negotiations.”

If gross sales hold falling, the remedy of seasonal pickers will probably be only one problem going through the trade.

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