French champagne industry group fumes over new Russian law

PARIS/MOSCOW, July 5 (Reuters) – France’s champagne industry group on Monday blasted a new Russian law that forces international producers so as to add a “sparkling wine” reference to their bottles of champagne, and referred to as for the halting of exports of the bubbly drink to Russia.

The law, signed by Russian President Vladimir Putin on Friday, requires all international producers of glowing wine to explain their product as such on the again of the bottle – although not on the entrance – whereas makers of Russian “shampanskoye” could proceed to make use of that time period alone.

The French champagne industry group referred to as on its members to halt all shipments to Russia in the interim and stated the title “champagne”, which refers back to the area in France the place the drink comes from, had authorized safety in 120 international locations.

“The Champagne Committee deplores the fact that this legislation does not ensure that Russian consumers have clear and transparent information about the origins and characteristics of wine,” Maxime Toubart and Jean-Marie Barillere, the group’s co-presidents, stated in a press release.

French Trade Minister Franck Riester stated he was monitoring the new Russian law intently, and was in touch with the wine industry and France’s European companions.

“We will unfailingly support our producers and French excellence,” he stated on Twitter.

Moet Hennessy, the LVMH-owned French maker of Veuve Clicquot and Dom Perignon champagnes, stated on Sunday it will start including the designation “sparkling wine” to the again of bottles destined for Russia to adjust to the law.

LVMH (LVMH.PA) shares have been down round 0.2% on Monday afternoon, underperforming the Paris bourse, which was up 0.34%.

Shares in Russian glowing wine maker Abrau-Durso (ABRD.MM) have been up greater than 3% after rising as a lot as 7.77% in early buying and selling.

Pavel Titov, the president of Abrau-Durso, instructed Radio France Internationale on Saturday his firm doesn’t have glowing wines that will be referred to as “champagne” in its portfolio and stated he hoped the difficulty could be resolved in favor of worldwide norms and requirements.

“It is very important to protect the Russian wines on our market. But the legislation must be reasonable and not contradict common sense … I have no doubts that the real champagne is made in the Champagne region of France,” he stated.

The European Commission stated the laws in Russia concerning spirits and wine would have a substantial affect on wine exports and would do all it may to precise its disagreement and concern.

“We will do everything necessary to protect our rights and take the necessary steps if this law enters into force,” European Commission spokeswoman Miriam Garcia Ferrer stated.

Asked what counter-measures the European Union may soak up response to the Russian law, she stated it was untimely to debate such a scenario.

Reporting by Sudip Kar-Gupta and Leigh Thomas in Paris, Alexander Marrow in Moscow and John Chalmers in Brussels;
Writing by Geert De Clercq
Editing by Alison Williams, Andrea Ricci, Catherine Evans and Paul Simao

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