By Sarah Montgomery

Champagne was discovered by Dom Pérignon, a monk who lived in the Champagne region of France in the 17th century. Upon the creation of this new concoction, he said to his peers, “Come quickly, I am tasting the stars!” Beyond being a delightfully bubbly beverage, champagne also serves as an economic indicator. Because the consumption of champagne often goes hand-in-hand with celebrations, the sales of champagne mirror the ambiance of the market. This relationship offers analysts insight into how the economy is doing. As put by Pascal Férat, the president of a Champagne-producer’s union, “When people are down in the dumps, they don’t feel like drinking [C]hampagne.” 

When people are down in the dumps, they don’t feel like drinking [C]hampagne. 

PASCAL FÉRAT

When people are spending money on champagne, it indicates that not only do people have enough money for necessities, but they have enough disposable income to splurge on luxuries—times are good. 

NPR’s Planet Money searched for the most interesting economic indicators. They found that Champagne sales are about 90% accurate in, one year later, anticipating the average American income. The theory is that while good times are ahead, bad times will soon follow. Davidson offered the peak of the Internet and Housing bubbles as examples of times when champagne sales were high in 1999 and 2007 respectively; famously, the years following those were those of a weaker economy. 

In its annual report, the Comité Champagne, a French community that represents champagne makers, notes an increase of global champagne sales while also having a 1.8% fall in shipments. An interesting place where champagne sales fell was in the U.K, historically the largest export market for the fizzy refreshment.; some suggest that Brexit is the reason. Shipments to the following countries grew: the US, Japan, China, Hong Kong, Russia, and South Africa. 

The U.S. Champagne Bureau, a representative of the Comité Champagne, echoed these findings and announced in March that an increase of sales champagne bottles occurred between now and 2017. And according to Beverage Wholesaler, “overall consumption [of champagne and sparkling wine] is up 56% in the past decade, and shows no sign of slowing.” Furthermore, more people are drinking champagne year-round. These are significant developments signaling prosperity, so perhaps the economy will falter in the near future.