From the parcels delimitation to the wine marketing:an integrated organization

Avril 2009

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Champagne-France

A precise area

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A unique soil and an ancestral know-how

Champagne, the combination of a unique, strictly defined territory and traditional production conditions, which are of the world’s most rigorous ones

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What is Champagne ?

A sparkling wine, produced in the region of Champagne, France, on the basis of strict methods that are prescribed by the French law and Community Regulations

• One of the world’s most prestigious wines

• A wine that is in conformity with very strict rules

• An economical asset for the region of Champagne-Ardennes

• A name, symbol of luxury and festivity, which is often the subject of misappropriation…

The production methods (1)

The product has to comply with the horizontal regulation

Champagne is a sparkling wine which must comply with the European regulations regarding sparkling wines

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CHAMPAGNE

CHAMPAGNE

Horizontal regulations

The production methods (2)

Additional regulations apply for GI products

Traditional and local production rules

Definition of the rules by producers’ organizations

Control by administrations and interprofessional organizations

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CHAMPAGNE

CHAMPAGNE

CHAMPAGNE

Horizontal regulationsAdditional regulations

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A considerable economic position

France is the first-ranked country for the production of sparkling wines and its Champagne represents 95% of this

production

322,4 million bottles sold in 2008

A turnover of 4,3 billion euros in 2008

More than 15 000 winegrowers and 300 Champagne houses, generating around 30 000 direct jobs

The restricted area

A shared mission

Administration (specific body, fraud administration and customs)

definition and control the respect of the restricted area

Interprofessional organization

Proposition to extend/restrict the aforesaid region

Internal controls

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The history of the Interprofessional organisation

Phylloxera

Anti-fraudlaw

Champagne’s Revolution

Law onAppellations of Origin

Creation of the

C.N.A.O.

ChampagneDecree

1898 1905 1911 1919 1935 1936

Since the 1900’s, producers are increasing the quality requirements for the production of Champagne and decide to create two kind of professional organizations: the UMC (Union of the Champagne Houses) and the SGV (trade union of growers).Since the 30’s, wines are tested before being allowed to be labeled as Champagne.During the second world war, the German occupation encourages the coordinated action between the Champagne houses and growers and finally the CICV was founded in 1941Since the 90’s, a follow-up of the quality is organizes in the market, including analysis and tasting of the wines.

Champagne committee

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Law of 12 april 1941: creation of CIVC

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Interprofessionnal organization

COMMISSAIRE du GOUVERNEMENTCOMMISSAIRE du GOUVERNEMENT

COMMISSION PERMANENTE

President President of the Houses of the winegrowers

COMMISSION PERMANENTE

President President of the Houses of the winegrowers

EXECUTIVE COMMITTE 6 wine merchants +

6 winegrowers

EXECUTIVE COMMITTE 6 wine merchants +

6 winegrowers

SPEZIALIZED COMMISSIONS

• Commission Technique• Commission Communication & Appellation Champagne• Commission d’Equipement du Vignoble• Commission du Suivi Aval de la Qualité• Commission Champagne, Santé et Société

SPEZIALIZED COMMISSIONS

• Commission Technique• Commission Communication & Appellation Champagne• Commission d’Equipement du Vignoble• Commission du Suivi Aval de la Qualité• Commission Champagne, Santé et Société

Economic missions- Vineyard and harvest- Market organization- Export- Economic research institute

Technical missions- Viticulture- Œnology- Environment- Sustainable development

Communication missions-Information- Reception of delegations- Champagne desks- Protection of the AOC

Operation- Human resources- Accounting- Maintenance- Information systems

Union

des Maisons

de Champagne

Union

des Maisons

de Champagne

SyndicatGénéral des

Vignerons de la Champagne

SyndicatGénéral des

Vignerons de la Champagne

CIVC Units CIVC Units

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What is the CIVC ?

The “Comité interprofessionnel du vin de Champagne” was founded by an Act of 12 April 1941 in view of safeguarding the harmonic development of the trade .

An organism charged with a mission of public interest and which carries out four main missions :

1) Maintain a balanced relationship between the two professions & organise the market management

2) Control the quality of the products and improve it

3) Promote and protect the appellation of origin"Champagne"

4) Promote a sustainable development and respect for the environment

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• 300 houses de Champagne exploiting around 10% of the vineyard et stocking up with grapes for the rest to the winegrowers

• They realize 66% of expeditions of Champagne and more than 86% of export

86,4%

13,6%

Maisons

Vignerons

The houses of Champagne

The winegrowers

• Exploiting 90% of the vineyard.

• Family farm with an average area of 2 hectares.

• 20 000 harvest informants, of which 15 000 are farmers

• 5 000 winegrowers market Champagne

• 140 coopératives gather more than the half of harvest informants and more than the half of the vineyard’s area

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The market management

Market management

Ensure a sustainable Champagne economy, through knowledge of the market and market regulation

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Determining the conditions of production in coordination with the producers, traders and administrations

Collecting all the data on the production and sales

Know the actors;Know the production;Know the transactions;Know the sales;Know the stocks

The knowledge of the market

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4 missions

Vineyard and harvest

Export TM registration

Economic research institute

The stocks control

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985 1023 1080 1081 10991020

1107 1123 1163 1215

3,0

4,0 4,1

3,7 3,83,4

3,6 3,5 3,43,8

0

200

400

600

800

1 000

1 200

1 400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

stock total y compris réserve rapport stocks/ expéditions

Millions bottles

The professional card

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Quality improvement

Quality improvement

The elder mission of the interprofessional organisation, since Phylloxera destroyed most of the vineyard

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R&D at every stage of the production process

- 50 people staff- More than 120 R&D programs- From the vine to the cork…

Control of the quality

- Control the respect of the production process (f.e. : pressing centers)- Follow-up of the quality- Anti-counterfeiting tool, etc.

The annual yield per hectare

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5 000

6 000

7 000

8 000

9 000

10 000

11 000

12 000

13 000

14 000

15 000

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Kg

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The harvest (in million of bottles)

150

200

250

300

350

400

450

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Récolte disponible Réserve

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Authorized grapes in Champagne

Pinot noir : 39%Chardonnay : 28%

Pinot meunier : 33%

The production methods

The importance of the pressing in Champagne

A specific pressing process in specific pressing centers

The pressing process is regulated by administration, on the basis of traditional know-how

CIVC is approving each pressing center

The administration is controlling the pressing process

CIVC is continuously experimenting new pressing processes, which would ensure the quality and typicity of Champagne wines

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The production methods

Many other criteria

Grape varieties,

Density of the vines in the vineyard

Specific cutting of the vine

Second fermentation in bottles,minimum ageing conditions

Specific regulations for vintage wines

Specific labeling provisions

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The quality standards

Since the 1900’s, producers are increasing the quality requirements for the production of Champagne

Since the 30’s, wines are tested before being allowed to be labeled as Champagne

Since the 90’s, a follow-up of the quality is organized in the market, including analysis and tasting of the wines

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Control of quality

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The quality standards

An adapted control system

- adapted to the type of product and its specificities

- adapted to the specific market of the products

- adapted to the notoriety of the product and the risk of misuse.

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Thank you for your attention

COMITÉ INTERPROFESSIONNEL DU VIN DE CHAMPAGNE 5, rue Henri-Martin, Boîte Postale 135 51204 Épernay Cedex France

www.champagne.fr