History

Champagne and Prohibition

On 17 January 1920 the United States closed its largest luxury wine market overnight. It did not stop drinking. For the next thirteen years champagne kept arriving — through two small French islands off Newfoundland, through a line of ships anchored just outside American waters, and through barrels declared as coffee. The houses that survived did so by pretending, for over a decade, that their best customer no longer existed.

Period 1920–1933 · the Eighteenth Amendment to its repeal Scale Tens of millions of bottles, by the most-cited estimate
Illustration

Prohibition did not ban drinking. The Eighteenth Amendment and the Volstead Act that enforced it banned the manufacture, sale and transport of intoxicating liquor — not its possession, and not its consumption. A wealthy American who had filled a cellar before January 1920 could legally drink it for the next thirteen years, and many did. What was outlawed was the trade, and the trade was where Champagne lived.

The loss was severe and specific. The United States had become one of the great export markets of the belle époque, and the houses had built for it: American agents, American labels, sweeter dosages to suit American taste. That market did not decline. It was switched off on a fixed date, announced a year in advance.

What followed is one of the odder chapters in the region's commercial history — thirteen years in which champagne continued to reach New York in quantity, arriving through channels no house could acknowledge and few could entirely avoid.

Saint-Pierre and Miquelon are French. They sit some twenty-five kilometres off the southern coast of Newfoundland, a fragment of the old French Atlantic empire left over from the eighteenth century, and in 1920 their economy was cod. Within a year it was alcohol.

The logic was simple enough that it barely needed inventing. The islands were French soil, so French goods could be shipped there without leaving French jurisdiction and without any American law applying. They were also close enough to the American coast that a fast boat could make the run. Warehouses went up along the harbour at Saint-Pierre. Cases arrived from Bordeaux, from Cognac, from Épernay and Reims, were landed legally, stored legally, and then left again on vessels whose declared destinations no one examined closely.

Islanders dismantled the wooden cases before reshipment — straw and timber slowed the loading and identified the cargo — and for years afterwards the houses of Saint-Pierre were said to be roofed and fenced with the wood of liquor crates. The volume that passed through in the peak years ran to millions of litres of wine and spirits annually, on an archipelago whose population was then a few thousand people.

Nothing about this was hidden from the French side. The trade was legal where it happened. It became illegal only in the last few miles, and those miles were someone else's problem.

The last leg had its own geography. American jurisdiction extended three nautical miles from shore — later, by treaty, twelve. Beyond that line a ship could sit at anchor with a hold full of champagne and break no law at all.

So they sat. At its height the anchorage off the New Jersey and Long Island coast held dozens of vessels at a time, a floating market that the newspapers named Rum Row. Buyers came out in small fast boats, took on a few hundred cases, and ran for the shore at night. The larger schooners never approached land and never needed to.

Champagne was a small part of the tonnage and a large part of the margin. Whisky and rum moved in bulk; champagne moved for the price. A case that left Reims at a modest wholesale figure could reach a Manhattan speakeasy at a multiple of it, and the bottle's shape, weight and fragility meant that everyone in the chain had a reason to handle it carefully and charge for doing so.

Officially, nothing. A house could not ship to a country that forbade the import without becoming a party to the offence, and the great names had reputations, trademarks and lawyers. What they could do — and did — was sell to buyers in Saint-Pierre, in Havana, in Nassau, in Montreal, and ask no further questions. The transaction ended at a legal port. Where the cases went afterwards was the buyer's affair.

This is the uncomfortable middle ground of the period. Very few houses smuggled. Very few houses could have been unaware of what happened to wine sold in bulk to a fishing archipelago with three thousand inhabitants.

Meanwhile the domestic problem was worse than the American one. Prohibition arrived in a region still physically wrecked by the First World War, with vineyards cratered and cellars damaged, and it coincided with phylloxera recovery, with the Depression at the end, and with the long argument over who was entitled to the name Champagne at all — the dispute that had already produced riots in 1911 and would produce the appellation boundaries of 1927. The houses that came through the twenties intact tended to be those with reserves, with other export markets, and with the patience to wait.

Waiting was a technique the region knew. A century earlier Barbe-Nicole Clicquot had run a shipment through a naval blockade and held it in a neutral port until the market she wanted reopened. The principle in the 1920s was the same, on a longer clock: keep the wine, keep the name, and be ready on the day the door opens.

The Twenty-first Amendment was ratified on 5 December 1933, and repeal was the only occasion in American constitutional history on which an amendment has been passed solely to undo another. The country had spent thirteen years demonstrating that the law did not work, and the last years of the experiment coincided with a depression that made the tax revenue from legal liquor look considerably more attractive than the principle.

The champagne houses were ready in a way that reads as slightly indecent. Shipments had been assembled in advance in Canadian and French ports. Cargoes moved within days. The photographs from that December — crowds, bottles held overhead, glasses in hotel bars — are the reason repeal is remembered as a champagne moment rather than a whisky one, and the houses did nothing to discourage the association.

The market they returned to was not the one they had left. American taste had shifted during the dry years towards cocktails and spirits, the sweet dosages of the belle époque never fully recovered their standing, and the houses that reopened American offices in 1934 were selling to a country that had learned to drink differently. But the name had survived thirteen years of illegality with its prestige not merely intact but enhanced. Scarcity and risk had done what advertising could not.

Was champagne illegal in America during Prohibition?

Selling, making and transporting it were. Drinking it was not, and neither was owning it. The Volstead Act stopped the trade rather than the glass, which is why Americans who had stocked a cellar before January 1920 could legally work through it for the next thirteen years — and why the black market existed to supply everyone else.

What is Saint-Pierre and Miquelon, and what did it have to do with champagne?

A small French archipelago off Newfoundland, French territory then as now, roughly twenty-five kilometres from Canada and within reach of the American coast. Because it was French soil, wine and spirits could be shipped there entirely legally and warehoused without any American law applying. From there the cargo continued south. The islands went from a cod economy to a liquor entrepôt in about a year, and back again after 1933.

How did champagne houses survive Prohibition?

By selling into legal intermediate ports and asking nothing further; by leaning on other export markets, Britain and the Empire above all; and by holding stock. The period was also survivable because the American market, however large, was one market among several — the houses that failed in these years generally failed from the combination of war damage, the Depression and thin reserves rather than from Prohibition alone.

Was champagne really hidden in coffee barrels?

It is the most repeated of the concealment stories, on the reasoning that coffee defeated a customs officer's nose. Smuggling of this scale left little documentation by design, so such details are best treated as period folklore rather than established fact. The verified part is the volume and the route, not the packing.

What was Rum Row?

The line of ships anchored in international waters off the American east coast, beyond the three-mile limit — later twelve — where no American law reached them. They waited there as floating warehouses while small fast boats came out to buy. The name covered several anchorages, the busiest off New York and New Jersey.

Did repeal really happen with champagne?

Champagne was the image of it, and the houses had positioned stock in advance to make sure it could be. Whether the average American celebrating on 5 December 1933 was drinking champagne is another matter — most were not. But the photographs that fixed the moment show the bottle, and that association has outlived everyone who was there.

Champagne has been shaped more than once by a law it did not write — by the boundary fights that ended in the appellation, by the requisitions of two wars, and by thirteen American years in which the most public wine in the world had to travel in the dark. The region's habit of outlasting the arrangement it finds itself in is not a marketing story. It is the actual history.

Find Your Champagne

Seven questions about your evening, your mood, the company at the table — and a bottle chosen the way a sommelier would.

Find your Champagne moment
Length Seven questions · two minutes Outcome One bottle, one story