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Fizz goes flat as exports dry up
The impact of the global recession on Champagne exports has become clear, with industry insiders predicting a 35% slump in the market.
A drop in exports to Britain, Champagne’s largest market, as well as to the US has impacted sales figures pretty badly, while French drinkers are generally cutting back on wine of all varieties.
France’s Federation of Wine Exporters said yesterday that it anticipates total wine exports to decline by a minimum of 20% this year as wholesalers react to the drop in consumer demand, particularly in the on-trade, while Champagne will be particularly heavily-hit with an export drop of 35%.
Federation director Claude de Jouvencel said: “We are expecting difficult prospects for 2009, after a strong decrease in the first quarter. The fall should be about 20%. High-end wines are suffering the most.”
The prediction is backed up by depressing figures from leading Champagne makers. Louis Vuitton Moët Hennessy, the makers of Dom Pérignon, said it has seen sales drop 35% in the first quarter of the year, while Laurent-Perrier saw sales fall by a quarter in the last financial year, resulting in profits plummeting 45% to £16.4million.
Meanwhile the French agriculture ministry reported that wine exports had fallen 15% by volume and nearly 30% by value in the first quarter of this year.
Alan Lodge, 04.06.2009