Champagne sales surge at New Year — but labor abuses and tariffs have clouded the industry

It’ll come as no surprise that sales of Champagne peak in the run-up to Christmas and New Year, with French fizz the drink of choice for many households in the festive season.

Every year, around 120,000 seasonal workers come to work in France, harvesting grapes across 34,000 hectares of vines. The harvest only lasts a couple of weeks, making it a frenetic time for the sector.

A darker side to the industry has emerged when it comes to that work, however, with recent reports shining a light on the exploitation and mistreatment of champagne grape pickers who are often foreign and undocumented migrants.

During an extreme heatwave in the late summer of 2023, at least four migrant grape pickers, or “vendangeurs” as they’re known, died in what has since been dubbed the “harvest of shame.”

The case highlighted broader substandard working and housing conditions for pickers, including excessive working hours, low pay, a lack of safety equipment and protocols, such as adequate hydration and breaks.

The scandal around working conditions and welfare comes at a difficult time for the wider industry — 2024’s harvest saw lower yields than average due to spring frosts and a rainy period during the summer that only subsided toward the end of the growing season, just about “saving” the harvest.

The 2025 harvest fared better and was lauded for its high-quality vintage, thanks to clement weather conditions.

Nonetheless, this year’s sales, which will be released in January, are likely to be further dented by U.S. import tariffs on goods from the EU, which caused Champagne shipments to the U.S. to slump.

The murkier side of the Champagne industry came to light when at least four migrant grape pickers died during the 2023 harvest, which took place during an extreme heatwave.

Then, in the summer of 2025, three individuals were put on trial, accused of human trafficking and exploiting over 50 West African migrant workers during the 2023 harvest.

The victims reported being treated “like slaves” and “animals” and being housed in “hellish” and unsanitary conditions with no clean drinking water. Such conditions compromised workers’ safety, health and dignity, the labor inspectorate said in the case.

Unscrupulous hiring practices were also thrust into the spotlight during the trial as the defendants were affiliated with an employment agency which provided workers to the industry, highlighting Champagne houses’ widespread use of subcontractors and employment agencies, or more informal channels, to recruit grape pickers.

The defendants were convicted and handed fines and prison sentences, while trade unions said the use of “middlemen” and agencies had enabled Champagne houses to turn a blind eye to illegal working practices.

In a summary of the case which was held in Châlons-en-Champagne criminal court, the prosecutor commented, “we cannot accept that behind a bottle of Champagne lies uncontrolled subcontracting and blatant mistreatment.”

The Comité Champagne — the overarching trade body for France’s Champagne industry and representing over 16,000 winegrowers, 130 cooperatives and 370 Champagne houses — acknowledged that the court case had damaged the industry’s reputation and said it would take a “zero tolerance” approach to any future abuses.

“We had to stand with the victims. You don’t play games with the health and safety of seasonal workers. Nor do you play games with the image of our appellation,” Comité co-presidents David Chatillon and Maxime Toubart told Le Monde newspaper in July after the trial.

The Comité launched a “Together for the Champagne Harvest” action plan to ensure that worker health and safety protocols and worker accommodations were improved, as well as harvest regulations.

Champagne winegrowers and houses have been keen to show they are committed to workers’ well-being. Moët & Chandon, the world’s largest producer and part of LVMH, invested 1.5 million euros ($1.76 million) in new accommodation for an extra 90 grape pickers in 2024, bringing the total capacity of its accommodation provision to up to 1,900 beds.

CNBC asked the Comité Champagne whether welfare measures had been fully implemented by its member organizations since they were proposed, but has not yet received a response. CNBC also contacted several unions, including the CGT labor union and SGV union of Champagne growers, about the reforms, but did not receive responses.

It’s no doubt a difficult time for the wider industry — 2024’s harvest saw lower yields than average due to spring frosts and a rainy period during the summer that only subsided toward the end of the growing season — just about “saving” the harvest. The 2025 harvest fared better and was lauded for its high-quality vintage, thanks to clement weather conditions.

Synonymous with north-eastern France, Champagne accounts for 10% of the world’s sparkling wine production by volume, but as much as 35% of sparkling wine’s global market value.However, sales have declined in recent years amid a fall in global demand and declining alcohol consumption.

In 2023, shipments of Champagne (which are typically a mix of several years’ harvests) totalled 299 million bottles, down 8.2% compared to the previous year. In 2024, 271 million bottles were shipped, according to the Comité Champagne data. This year’s sales face additional headwinds from U.S. import tariffs on goods from the EU.

The industry has also faced challenges from within, with the CGT labor union at LVMH’s Moët & Chandon and Veuve Clicquot’s champagne units calling on workers to strike in December over the cancellation of year-end bonuses and demands for better pay.

A spokesman for Moët & Chandon told CNBC that it would not comment on the dispute but that negotiations over pay would take place in early 2026, noting, “we cannot comment before the negotiations.”

If sales keep falling, the treatment of seasonal pickers will be just one challenge facing the industry.