John Maynard Keynes loved Champagne. When asked if he had any regrets in life he admitted to only one. I regret that I did not drink more Champagne, he said.

He even applied economic analysis to Champagne. Looking for ways to increase revenue from the bar at the Cambridge theatre where his ballerina wife Lydia Lopokova often danced (Keynes subsidized the theatre, so he had an interest in its “liquidty”), he studied the cross elasticity of demand between ordinary and premium Champagnes and proposes a novel plan to increase total expenditures by altering prices.

Raising the relative price of the cheaper stuff would make the more expensive tipple seem a better deal, he said, and increase total revenues. I don’t know if the author of Essays in Persuasion was able to persuade the bar manager to go along with the experiment.

Adam Smith, Terroirist

There is no indication that Adam Smith was fond of Champagne or even gave it much thought. Perhaps this was because of the difference in time and place relative to Keynes, but I think it might be because Smith was a terroirist. He believed in the idea of terroir and wrote in the Wealth of Nations that the wine grape was particularly sensitive to local growing conditions. He noted that certain famous Bordeaux wines earned a terroir premium in the marketplace.

If Smith was in fact a terroirist he might shy away from Champagne because most of the Champagne wines in the market place are relatively terroir-free.  Yes, of course, they represent that terroir of the Champagne appelation. But the wines that come from the big houses are blends that come from hundreds of growers and several different vintages. The wines are made in the cellar (through the highly manipulative methode champegnoise) at least as much as they are made in the vineyard. They can be excellent luxury products to be sure, but consistency is generally valued more than terroirst local or vintage variation.

Grower Champagnes are different; Smith and Keynes would both love them. They combine all the luxury and sensuality that Keynes appreciated with Smith’s intellectual focus on local conditions. Grower Champagnes are made in teeny tiny quantities by individual Champagne winegrowers from estate fruit. They are cult wines sold by specialists like Terry Theise, who also champions high terroir Rieslings from Germany and Austria.

Popping a Fat Cork

Is there a market for luxury terroir wines like grower Champagne? This question led us to a Seattle door marked “Fat Cork” where owner Bryan Maletis imports an exclusive list of grower Champagnes and sells them directly to small but growing local and national network of Keynesian-Smith and Smithian-Keynes buyers.

Bryan is well placed to take on the grower Champagne business. He has deep experience in the wine business, most recently as brand manager for Champagne Laurent-Perrier at Winebow, the big distributor. His connection to the grower networks and understanding of the market and distributional issues are valuable assets.

Bryan led us through a terroir tasting of three grower Champagnes (see the list at the end of this post) and the differences in wine were readily apparent to me and my Champagne research unit, which includes Sue, Joyce, Bonnie, Barry and Richard. Joyce revealed herself to have both a fine palate and an exceptional ability to express herself when it comes to Champagne and it was interesting to watch Bryan and his wife Abigail analyze the particular qualities of the wines in their portfolio in order to select the perfect wine for Joyce.

I asked Bryan about the challenges that his business faces, expecting him to start with shipping problems. But he told me that shipping isn’t an important barrier for him at this point. He has created innovative shipping containers that allow him to safely ship wine even in the hottest weather.  So check that important box. And he simply complies with all the interstate laws as best he can, accepting the constraints and pushing on.

University of Champagne

The real problem is that sparkling wine is a small part of the wine market and grower Champagne is a small part of that. People don’t drink Champagne every day, but save it for special occasions. Bryan would like to change that. And even people who have a Keynesian view of Champagne don’t necessarily know about grower Champagne, but may stick for the most part with the heavily-promoted brand names of the major houses.

It’s a marketing problem, he said, although I think it is also an educational problem (which probably makes it even worse). People won’t seek out grower Champagnes until they understand them. Once they taste them, however, I think many will be intrigued and want to probe the Champagne terroir as terroirists do for other wines.

Am I saying that, with a little education, Keynesians can embrace Adam Smith? I guess so! At least when it comes to Champagne.

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Here are the three grower Champagnes we tasted with Bryan and Abigail. Special thanks to Sue, Bonnie & Richard and Joyce & Barry for their assistance in analyzing the market for grower Champagnes. And thanks to Richard, of course, for sharing his business model with us and popping a few fat corks.

• Perrot-Batteaux et Filles Cuvée Helix Blanc de Blancs (Bergeres-les-Vertus, Cote des Blancs)
• Pascal Redon Brut Tradition (Trepail, Montagne de Riems)
• Didier-Ducos Fils Brut (St. Martin d’Ablois, Valee de la Marne)