It takes three years to produce Champagne wine from grapes, so the adjustments of supply to demand lead to jumps of prices in economic booms and drops in prices in stagnation/recession times that disturb consumers and strongly affect vine growers and wine makers. The paper reports that vine growers and wine makers have learned and were able to contract in order to limit price swings when negotiating with retailers. A producer-retailer cycle is exhibited with three loops over the period 1978-2002.
DECLERCK, F. (2004). Managing a Producer-retailer Cycle: Evolution of Champagne Supply in Response to Retail Pressure on Price Over 25 Years. In: 88th Seminar of the European Association of Agricultural Economics (EAAE). European Association of Agricultural Economics (EAZE).