Champagne shows signs of recovery

Deep discounting, a Christmas sales rush and signs of economic recovery appear to be saving Champagne from a sustained decline in demand.

Although last year will still see a double digit decrease in global Champagne shipments, the region is relieved that figures are not falling further.

According to La Journée Vinicole, edition 208 (25 January 2010), international Champagne sales volumes are forecast to be in the range of 285 to 290 million bottles for 2009.

Annual sales for the region to the end of November are down 12% on 2008.

Although final figures for December have yet to be collated, sales in November were actually up for the first time since the start of 2009, pointing to a recovering market.

Growth was reported within the EU and outside Europe, while over the 11-month period the domestic market was just 1.2% down on the previous year.

Italy, Japan and the Netherlands saw imports of Champagne fall by almost 40% while the UK, Belgium and Spain saw drops of up to 30%.

According to the article, UK supermarket giant Tesco posted a 35% increase in sales of Champagne at the end of 2009.

Overall off-trade Champagne volume sales in Britain were up 16% in the four weeks to December compared to the same period in 2008, according to Nielsen.

In value terms the increase was slightly lower, at 14%, no doubt representing the competitive nature of festive fizz deals in the major UK retailers.

Patrick Schmitt, 28.01.10