Bureaucrats create more champagne

On 13 March, the Institut National des Appellations d'Origine (the French agency charged with controlling the labelling of wine, cheese and a whole host of other food products) announced an expansion of the French region of Champagne. Now, 357 villages (up from 317) will have the right to make sparkling wine and label it champagne, from 87,000 acres of vines (up from 84,000 plus). This was done in order to meet growing demand for champagne.

More here and here.

Now for some Fermi estimation:

• Maximum champagne yield from the old territorial delineation was about 300m bottles a year, about 3,500 bottles an acre, as it says here.
• The new acreage will add some 10m bottles to current production at current yields.
• But annual sales were already exceeding that by some 40m bottles - 338m bottles in 2007!
• By 2020, assuming champagne demand grows at a rate of 5% per annum - not outlandish if you believe China and India are nascent luxury demanding economies - then annual demand will be more like 600m bottles.
• That's about 81,500 extra acres - a doubling in size of the champagne region...

Clearly, the price of champagne is going to go up by a lot in the future. Best drink more (good champagne) now. The Pretty Lady is nodding as I write this. Better go and get a few bottles.