The French champagne maker Moet Hennessy said it would begin adding the designation 'sparkling wine' to the back of bottles destined for Russia to comply with a new law, having had to suspend deliveries to make the change.
French winegrowers jealously guard the designation 'champagne' for the output of the region of the same name, and shun other descriptions.
Moet Hennessy parent LVMH's wine and spirits division reported a 36% year-on-year growth in organic revenue to €1.51 billion from €1.17 billion in 2020.
In the first quarter of 2021, champagne volumes were up 22% compared to the first quarter of 2020, with good performances in Europe and the United States.
Product Description
But the law, signed by President Vladimir Putin on Friday (2 July), requires all non-Russian producers of sparkling wine, including the French to describe their product as such in Russia on the label on the back of the bottle, although not on the front.
Makers of Russian 'shampanskoye' may continue to use that term alone.
Moet Hennessy, which sells the Moet & Chandon, Veuve Clicquot and Dom Perignon champagnes and belongs to the LVMH group, said it had been forced to suspend deliveries to change its labels.
'The MH Champagne Maisons have always respected the legislation in force wherever they operate, and will resume deliveries as quickly as possible once these adjustments are made,' it said in an emailed statement.
In February of this year, Moet Hennessy said it would buy a 50% stake in rap star Jay-Z's Armand de Brignac champagne brand.
