Sparkling wine hub forms in upstate New York as pricey bubbly slumps

Are Americans toasting and celebrating less? Some economists and industry leaders say consumers have put a cork in enjoying champagne.

But some say this inflation-based trend has presented an opportunity for New York growers and wineries.

Industry expert Meaghan Frank, vice president of Dr. Konstantin Frank Wineries, says yes, champagne and sparkling wines tend to be a more challenging market right now. Amid higher inflation, globally, she says people are drinking less.

The market is truly seeing inflationary impacts as champagne and some sparkling wines are considered higher-priced, or in the luxury range. As times get tighter, it’s an area where people are cutting back to save money.

But one New York winery is excited about its sparkling wine products, which they create by using the same method as those created Champaign, France. Its vineyard is also seeing growth.

Frank says they are up by at least 22% this year, while high-priced bubblies are seeing a sales slump.

LVMH is a luxury company whose labels – and prices – are top shelf: Dom Pérignon, Krug, Ruinart, Veuve Clicquot and Mercier. The company sold 15% fewer bottles of champagne in the first half of 2024 compared to same time last year.

Frank says they are working hard to educate consumers that sparkling wine is not just for big occasions. They suggest that sparkling wine is an offering for a casual evening of enjoyment, perfect for limitless food pairings.

Sparkling wine price points can mirror those applications. Where champagne can cost $50 a bottle or more, New York sparkling wines have offerings starting at $25.

“The Finger Lakes is really well-suited to sort of become the domestic, you know, the traditional sparkling method sparkling wine hub,” Frank said. “Because we have a cool climate. Because we have some really talented producers already growing the champagne varieties. Chardonnay, Pinot Noir, Pinot Ménage, we are really well set up to sort of be the industries answer for the American champagne, if you will, not calling it champagne, but the American sparkling wine hub.”

She adds that they are continuing to work on a cultural shift to reframe the state’s sparkling wine so it’s not seen as only a celebratory beverage.