Champagne makers to draw on reserves after heatwaves shrink harvest

By Sybille de La Hamaide

PARIS, Sept 9 (Reuters) - Champagne producers will draw on reserve wines after spring frosts and summer heatwaves cut this year's grape harvest, even as growers said the quality of the wine could be among the best in years.

The extreme weather that swept across France, the world's second-largest wine producer, pushed grape picking to some of the earliest dates on record in some regions, including Champagne, home to brands such as Moet & Chandon and Bollinger.

The harvest advanced so quickly that some growers cut short their summer holidays and pickers were called back ahead of schedule, said Maxime Toubart, co-president of Comite Champagne (CIVC), the industry's governing body.

"We were not quite ready," Toubart told reporters.

'EXCEPTIONAL' QUALITY

The industry has trimmed production targets for several years as global alcohol consumption declines and economic uncertainty weighs on demand. Producers have also been watching the potential impact of U.S. tariff policies.

France's agriculture ministry said on Monday that wine production in the Champagne region was expected to fall by about half from the previous year.

That estimate can differ significantly from producer calculations because Champagne houses can draw on reserve wines held back from stronger harvests to help smooth out weaker ones.

Most Champagne is made by blending wines from several harvests, giving producers greater flexibility to cope with poor vintages.

While producers are expected to use reserves this year to compensate for the shortfall, some may choose to preserve part of those stocks for future blends.

"Some producers may prefer to keep reserve wine for future blends, or bottle a little less," Toubart said.

Despite the smaller harvest, producers described this year's wine quality as "exceptional", helped by ripe grapes and the absence of mildew. However, the high alcohol levels resulting from the hot weather are expected to pose challenges in winemaking.

"The fact that the quality is there makes the lackluster yield a bit easier to swallow," Sebastien Debuisson, technical director of CIVC, said.

(Reporting by Sybille de La Hamaide. Editing by Mark Potter)