Despite the quality of its vineyard holdings in Champagne, and the good standard of COGEVI’s output under the Collet brand, this particular part of the group has run into financial troubles, and it is believed that it has requested a bailout from the Alliance Champagne board. Earlier this month it was announced by cooperative group Alliance Champagne – which is one of Champagne’s biggest producers and landowners – that part of its three-pronged business was breaking away, taking with it around one third of the group’s combined vineyard holding and therefore potential grape supply.

That’s because, until this year, prices have been increasing for grapes, (despite a volume decline in overall shipments), and, due to the Champagne ageing process, everything being sold now has been made from grapes bought at least two years ago. Since then the CVC has grown rapidly and it is now made up of 80 smaller co-ops, which between them have nearly 5,000 grower members who send to the Chouilly co-op for processing, the crop from the equivalent of 2,200ha of vineyard spread right across the appellation. In terms of how much COGEVI has been supplying to Alliance for its branded Champagne needs, this is said to represent grapes from across around 100ha (from COGEVI’s 810ha total). One of Champagne’s biggest groups is breaking up, but is this a sign of wider problems in the sector or a case of excessive spending within one business? We look at the situation. COGEVI produce Champagne Collet In other words, while Champagne Collet has a strong reputation for quality, it does not have the awareness or margins of a Grand Marque such as Pol Roger, Bollinger, or Veuve Clicquot, making funding big capital investments, particularly in a contracting market for Champagne, a challenge for COGEVI.

Mumm, RSRV Cuvée 4.5

But there’s a bigger problem for Champagne makers, whether they are growers who bottle under their own label, cooperatives who make their own brands, or houses who buy grapes to produce globally distributed marques. As db has been assured, this separation will have no immediate effect on Alliance Champagne, which has, as its flagship brand, Jacquart, as well as a further label, Montaudon – which tends to be used for selling large volumes of fizz in the major multiple retailers. What about the situation when viewed from Alliance’s perspective? Well, while COGEVI’s withdrawal represents a potential loss of 30% of the Alliance supply base, as it has been said to db, if Champagne volume sales are down by 20% in 2020, then the amount needed to make up for COGEVI’s departure is not so great at just 10% in volume terms. On the other hand, should Covid-19 be brought under control, then consumers will have a two reasons to drink Champagne: they will be celebrating Christmas and an end to the pandemic. Inside COGEVI’s Cité du Champagne Alliance Champagne: a potted history So, for Champagne producers, the dilemma comes with selling high-cost wines at a time of oversupply and low consumer confidence.

Indeed, COGEVI, as a newly independent entity, may choose to use its prime vineyards to expand its own branded Champagne production or supply Grandes Marques in need of high quality grapes. Jacquart & Associés Distribution (JAD) is a wholly-owned subsidiary of Alliance Champagne which was set up by the three remaining co-ops both to handle the distribution and marketing of the Jacquart brand, wine made under the Champagne Ritz licence and all the BoB production for COVAMA, COGEVI and Union Auboise. Furthermore, db has been led to believe that COGEVI managing director, Olivier Charriaud, has already left the organisation, along with the financial director.

So why have these senior figures left COGEVI? While this is speculation, it appears that COGEVI may have spent too much money, with db sources citing a number of major investments, with a couple of capital-intensive ones mentioned in particular.

However, one insider has made it clear that the reason for the break up is connected with past over-spending, rather than any issue with incomes during the present downturn in Champagne consumption. Furthermore, producers have a contractual obligation to buy grapes at a pre-agreed price, meaning that even during our current coronavirus-affected times, producers won’t be paying a reduced fee for their grape supply. (Any reported grape price reduction tends to represent just the small amount sold on the free market). However, it’s not that simple. While it is likely that COGEVI will continue to supply Alliance’s needs for its brands, should it choose not to do this, Alliance would lose access to some prime vineyards in the Montagne de Reims and the Côte de Blancs.

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They actually own an area of vineyard far greater than this, but their total crop is shared between three major destinations: local co-ops, contracts with the négociants and the CVC. The CVC in turn divides its volume of roughly 22m bottles between the Nicolas Feuillatte brand and Buyers’ Own Brand (BoB) business. Meanwhile, the unbranded sector of Champagne, often supplied by cooperatives, is declining in terms of sales and profitability, which may mean that another source of COGEVI business is in decline. Indeed, the leaving-party represents 800 growers spread across 810 planted hectares, including some prized premier and grand cru plots, with vineyards and facilities capable of producing around six million bottles.

An excellent wine from Lanson. Mid-gold colour. The nose is intense and complex, with raspberry, green apple and some biscuity notes. On the palate it is long and creamy, with bright fruit and subtle hints of more developed, savoury notes. It has a beautiful, slightly chalky texture, a powerful mousse, and a long, creamy, and beautifully integrated finish. Delicious! (Siobhan Turner MW) Champagne de Venoge, Cordon Bleu Brut NV And finally, exacerbating the situation is something that’s become a more recent issue for the region, and particularly the cooperatives, and that is a shift from a shortage of grapes, to, potentially, an oversupply, as annual production in recent harvests has exceeded current demand. Furthermore, it has been said that where necessary, Alliance will retain its grape supply contracts with COGEVI grower members. As mentioned earlier, COGEVI only supply around 100ha worth of grapes to Alliance for its branded Champagne production, representing around 20% of COGEVI’s turnover, but, bearing in mind the current situation, sources suggest that COGEVI don’t want to lose Alliance as a customer – and hence the likelihood that COGEVI will remain a supplier to Alliance. Together, Jacquart and Montaudon account for around 5m bottles in annual sales for Alliance, or one fifth of the group’s output – it produces 25m bottles each year.

Champagne Barons de Rothschild, Concordia Brut

This champagne of character, true identity of the Maison Collet harmoniously combines the three grape varieties Champagne: Chardonnay, Pinot Noir and Pinot Meunier. These are the construction of a new, large production centre in Oger and an impressive wine museum in Aÿ, called ‘La Cité du Champagne’, which are in addition to what is reputed to have been extensive spending on marketing its Collet brand, which totals around 500,000 bottles in annual sales, less than 10% of the cooperative’s 6m bottle output. These come under the acronyms COVAMA, COGEVI and UAPVC, and you can read about the history of the Alliance leviathan below, including the Champagnes produced by the group and its component cooperatives. Established in 1837 in Épernay by Henri-Marc de Venoge, emigrating from his native Swiss canton Vaud, the maison adopted its emblem ‘Cordon Bleu’ in homage to the little Venoge river in Switzerland, which empties into Lake Geneva. This is a stylish wine, exhibiting a pale lemon colour and a narrow cordon with crunchy yellow and red fruits and buttered toast accents. Brut (c.6 g/l dosage), medium-bodied, the wine has bracing acidity and creamy mousse texture to support the flavours. A lingering finish suggests a poly-valent wine, suitable for the Henley Regatta or Wimbledon events with, or without, strawberries and cream, and will be equally delicious with salmon mousse napped with cucumber-cream sauce. (Patricia Stefanowicz MW) Champagne Castelnau, Extra Brut NV Furthermore, the primary sector of decline in Champagne has been among less well-known brands, including those closely tied to the declining French market, as well as those classified as supermarket own-label or exclusive brands, which, in the majority of cases, are supplied by the cooperatives.