Mike Tommasi > wrote:

> Interesting Dale, but the problem right now is not so much
> pricing but having enough supply to meet the demand, at any
> price. Champagne is booming and even the small Champagne
> producers I know are offered incredible prices for still wine
> for the large houses, yet their own demand for finished
> Champagne is increasing each year.

When demand increases, you can react in three ways:

- increase planted area
- increase yields
- increase price

Champagne is doing all three.

But, not surprisingly (at least to the insider), Champagne has
done has done that for ages. Planted surface has doubled in the
last 40 years (from 18,000 to 36,000 hectares); yield went from
around 60 hl/ha to currently around 100 hl/ha -- and what's with
prices? Everybody knows.

M.