Champagne sales surge at New Year — but labor abuses and tariffs have clouded the industry

• At least 4 migrant workers died during 2023's extreme heatwave, with 3 individuals later convicted of human trafficking for exploiting 50+ West African workers who reported being treated 'like slaves' in unsanitary conditions
• Industry employs 120,000 seasonal workers annually through widespread subcontracting that enabled abuses; Moët & Chandon invested €1.5M in worker housing improvements following scandal
• Champagne shipments fell to 271M bottles in 2024 (-4.9%), with U.S. tariffs and strikes at LVMH units over pay adding pressure to an industry representing 35% of global sparkling wine value

The Champagne industry faces significant challenges as labor scandals and market pressures threaten its reputation and sales. Recent reports expose widespread exploitation of the 120,000 seasonal grape pickers employed annually, many of whom are undocumented migrants. The "harvest of shame" in 2023 saw at least four workers die during an extreme heatwave, highlighting dangerous working conditions including excessive hours, low pay, and inadequate safety measures.

In summer 2025, three individuals were convicted of human trafficking for exploiting over 50 West African workers, who reported being treated "like slaves" in unsanitary conditions. The scandal revealed how Champagne houses use subcontractors and employment agencies, enabling them to overlook illegal practices.

The Comité Champagne, representing 16,000 winegrowers, 130 cooperatives, and 370 Champagne houses, launched a "zero tolerance" policy and "Together for the Champagne Harvest" action plan to improve worker conditions. Moët & Chandon invested €1.5 million ($1.76 million) in new accommodation for 90 additional workers, expanding capacity to 1,900 beds.

Market conditions remain challenging. While Champagne represents 10% of global sparkling wine production by volume and 35% by value, shipments fell 8.2% to 299 million bottles in 2023, with 2024 seeing further decline to 271 million bottles. The 2024 harvest yielded below-average volumes, though 2025's harvest showed improvement with high-quality vintage.

Additional pressures include declining global alcohol consumption, potential U.S. import tariffs on EU goods, and labor disputes at LVMH's Moët & Chandon and Veuve Clicquot units over canceled bonuses and pay demands. The industry must address both ethical concerns and market headwinds to maintain its premium position.