Champagne and celebrity chefs, the perfect match?

Sparkling wine has been the industry success story of the decade – one that has dominated news headlines, helped to kickstart the English sparkling wine movement and propel Prosecco’s profile into orbit.

Francis Mallmann

In the past five years, spending on sparkling wine, including Champagne, in the premium UK on-trade has increased by 149% in value and by 130% in volume, according to Liberty Wines. Champagne remains the aspirational kingpin of sparkling wines, but the category has lost significant market share since 2013, as detailed on page 32 of this feature. As the quality and quantity of competitors increases, Champagne can no longer rely on the region’s historic credentials to carry it to the top of a wine list – they need to get creative – and celebrity chefs are becoming a growing presence.

Celebrity endorsements have long presented a powerful platform for marketers to raise consumer engagement and awareness of their brand. In the case of Champagne, film stars, sports personalities and music moguls have all played their part in furthering the category’s appeal. As far back as 1868, British music hall entertainer George Leybourne was commissioned by several Champagne houses to write and perform songs about Champagne, with one of his most notable numbers being Champagne Charlie.

In the 21st century, rapper Jay-Z proved a hugely influential figure, his preference for Cristal, leading to the brand’s popularity in the world of hip-hop. His affection cooled, however, and was transferred to Armand de Brignac – a brand he later bought for a reported $200 million – following a much publicised comment made by Louis Roederer’s CEO to which the rapper took offence (“We can’t forbid people from buying it”), but his impact on the brand’s trajectory remains.

In 2012, Moët & Chandon signed a five-year deal with tennis ace Roger Federer, replacing actor Scarlett Johannson, while G.H. Mumm more recently inked a deal with athlete Usain Bolt, appointing the sprinter to the position of CEO (chief entertainment officer).

But while all of these famous figures invite appeal to a brand, it’s easy to be cynical about their association, the dollar signs fixed in view, with celebrity associations becoming increasingly problematic. Consumers’ idea of luxury has changed. Authenticity, provenance and quality is key, and, in this context, celebrity endorsements can appear hollow, lacking credibility, and a
tad solicitous.

As Matthew McConaughey declared upon taking up the position of creative director for Wild Turkey Bourbon in 2016, if there’s one thing millennials don’t respond to, it’s over-marketing.

Victoria Carfantan, director of Champagne Bollinger UK, says: “Celebrities and influencers are an incredibly strong marketing tool for some brands, and can have huge impact on reach and engagement. However, brands need to be cautious when approaching the world of ‘influencers’, as consumers are savvy and are aware they are being paid to endorse their products.”

While subtle, this shift has not been lost on big brands, or the Champenois. While ‘traditional’ celebrity ambassadors remain, a number of major houses have turned their attention from the glitterati of Hollywood towards an equally talented, albeit more understated, crop of celebrities a little closer to home – chefs.

Gastronomy

Jason Atherton

From brand ambassadors to chef ambassadors, a slew of brands, including Krug, Lanson, Pommery, Bollinger and Moët & Chandon, have, in the past year alone, aligned themselves with some of the world’s most famous culinary figures. Last year, Krug hosted a £395-a-ticket festival in Hampshire, called Into the Wild, where Argentine chef Francis Mallmann and his team used sand pits, trenches and dome-shaped frames to serve smoked, roasted and charred meats, pairing each dish with a Champagne from the Krug portfolio.

This year, Moët & Chandon confirmed a deal with chef Jason Atherton, launching tasting menus in several of his Michelin-starred London restaurants. Veuve Clicquot, meanwhile, benefits from an understated and organic association with Joël Robuchon, who insists that the house Champagne at his restaurants be Clicquot’s Yellow Label, poured from magnum no less.

Lanson has maintained an association with US chef Wolfgang Puck, who hosted a pop-up of his LA restaurant Spago in London last year, to which Lanson donated 12 magnums of 1982 from his private cellar. The producer has also agreed a tie-up with French chef Jean Imbert, who will be incorporating the brand’s organic Green Label at his two-month pop-up at Disneyland Paris.

Regardless of any renumeration gained by either party, Paul Beavis, Champagne Lanson managing director UK and international, stresses that such associations emerge because the chef has chosen a particular wine, not because they have been approached by a brand. This philosophy fits with consumers’ evolving perception of quality.

“Maybe 10 years ago it was more flashy,”says Beavis. “However, nowadays consumers want to make their choice based on an informed decision, where a combination of quality, taste and image all play a part. In hotels and restaurants the chef is the star and we, as a brand, play our part in that experience.

But the values have to be aligned, and it comes back to the understanding of what the values of both your brands are. It’s about understanding what that chef or restaurant is trying to do and working together to make the experience as enticing as possible. It is less about how big your promotion is. It’s about how the sommelier and/or chef feels about your brand so that they can talk about your Champagne in a genuine way.”

Last month, Champagne Pommery named chef and food writer Sophie Michell as chef ambassador for its English and French sparkling wine brands. Michell, who has held positions at the Michelin-starred Le Gavroche, The Greenhouse, The Lanesborough and The Embassy, is the only female chef to have become an ambassador to a Champagne house, which chimes with Pommery’s foundations: the house was founded by Louise Pommery, a pioneer of social reform, pension plans for staff, childcare and education, in 1836.

“Sophie’s passion helped her to break through barriers as a young female executive chef,” Sara Hicks, director at Champagne Pommery, says. “We see her as a role model for successful women, as well as a genius in the kitchen.”

Gastronomy has, of course, always been integral to the marketing strategy of Champagne, but the way in which that message is communicated has changed, with consumers demanding more of an experience and a more authentic interaction with a brand.

Chef Phil Howard

“Over the years, the main changes to our marketing strategy have not been in the message itself, but in the way we communicate and reach out to the consumer,” adds Hicks.

“The role of social media has never been more important than it is today, and when used well can be really effective in reaching one’s target markets. The role of ‘influencers’ has been an interesting development in the marketing world too, so it’s important for us to adapt and work with lines of communication that best engage with the consumer.”

Bollinger, for example, has stepped up its focus on experiential marketing this year. Having worked with Raymond Blanc and Phil Howard to support its sponsorship as the official Champagne of Royal Ascot last year, this year it has extended its partnership with Howard for the launch of its 2004 R.D. cuvée.

The chef has created a bespoke dish (roast zander with lentils, baked celeriac and smoked eel) to pair with the Champagne that will be available at his London restaurant, Elystan Street, for a limited time, alongside a by-the-glass offer of the new R.D. cuvée.

“The partnership was born out of a genuine relationship,” stresses Carfantan. “Phil’s cuisine is outstanding, and I felt it was the perfect complement to Bollinger R.D. 2004.”

Made in the on-trade

Sophie Michell

The appeal of a chef ambassador is twofold; not only are they credible advocates for the quality and taste profile of a wine, but powerful gatekeepers to the on-trade.

“Traditionally, wine brands are built in the on-trade; this is the natural environment to let the product shine and customers have the expert guidance of sommeliers on hand to help them tackle the wine list,” says Carfantan. “However, food and wine pairing takes things to the next level, and there is integrity when aligning with a professional chef; there is no more credible ambassador to speak about the harmony of food and wine marrying around a certain dish. It is the ultimate in experiential marketing for today’s consumer.”

Overall, sales of Champagne in the on- and off-trade are growing, but not thriving in the UK. According to Nielsen, the volume of Champagne sold in the UK off-trade to the end of December suffered a 20% decline in volume and an 11% fall in value, bringing the number of bottles sold through UK retailers down from 16.7m in 2016 to 13.3m in 2017. The picture is slightly more positive in the on-trade, but only when assessing the premium end of the market. Data company CGA Strategy reported a three-year decline, with volumes falling from a peak of £440m in 2015, to £373.3m in 2017. Volumes, meanwhile, have fallen from 54,737 hectolitres in 2014 to 40,638 in 2017.

“Three years ago the Champagne category was benefitting from the premiumisation trend, and the growing tendency for consumers to drink Champagne as a treat,” says Jonathan Jones, director of client services at CGA.

“The category was seeing volume growth of 5% year-on-year. However, fast-forward three years and volumes are now declining at 12% year-on-year, and showing little sign of recovery. In this same period, Champagne’s share of total UK on-trade Champagne and sparkling wine volumes has fallen from 45% to just 20%, while Prosecco has capitalised on the same changing consumer demands but at a more accessible price point. With the price of Champagne being three times that of other sparkling wines, it still holds more than 40% of the value sales, and still provides a trade-up opportunity for operators and licencees.”

Slowdown in growth

Spiros Malandrakis, senior analyst at Euromonitor, paints a similar picture, believing Champagne’s performance in the on-trade will “get worse before it gets better”, as Brexit negotiations progress.

“I would expect at best a slowdown in the growth of both the on- and off-trade,” he says. “Obviously, the on-trade is more susceptible, but my expectation is more on the negative side. The UK is one of the key markets for Champagne globally. Whatever happens in the UK has a global impact on Champagne sales.

Currency exchange issues over the past year have already put pressure on Champagne sales, because it has to be imported. On top of that we have the Brexit saga, which is about to get worse. Last year was also been a really bad year for production, with some producers discussing price increases of 10%-30%, so it’s a triple whammy. Distributors and retailers tend to be open-minded to absorbing some increases. I don’t think it will all be passed onto consumers, but producers are feeling the pressure.”

Wolfgang Puck

Increasing competition has caused Champagne to feel the pinch. Since 2013, Champagne’s share of the UK on-trade has shrunk, according to Liberty Wines. However, it’s not all doom and gloom. Importantly, Liberty’s Premium On-Trade Wine Report 2018 divides the on-trade into ‘premium’ outlets, based on factors including cost and commercial reputation, and ‘outside premium’, with the former outperforming the latter.

In the ‘premium’ on-trade, sales of Champagne are growing. Value growth has been more than double the volume increase each year (+3% by volume, +8% by value in 2017), reflecting demand for more premium marques. It is outside of the premium on-trade that Champagne sales are declining (-18% by volume, -15% by value), the report states, confirming that the premium on-trade remains the key for Champagne growth.

“Premium on-trade sparkling wine drinkers have become more adventurous, and now expect to see other sparkling wines on wine lists, notably English and Welsh,” the report states. “This growing demand has meant sales of English and Welsh wines have more than doubled between 2013 and 2017.

Outside premium, Prosecco has decimated Champagne’s volume and value market share and also hampered the growth of other sparkling wines. This suggests that the prospect of building sales of higher-priced Champagne in the premium on-trade still exists, together with premium Prosecco.”

In the ‘premium’ on-trade Champagne’s value share of the sparkling wine market has fallen from 71% in 2013 to 62% (-9%) in 2017, while volume share has dropped from 69% to 38% (-31%). ‘Outside’ premium, value share dropped from 71% to 40% (-31%), while volume share has shrunk from 46% to 20% (-25%), while Prosecco has increased its share in both sectors.

Overall, the average bottle price for Champagne has grown in the premium on-trade by 26% between 2013 and 2017. Outside of premium, “as cheaper sparkling wines and discounted Prosecco have taken hold, average bottle prices of all sparkling wines are declining across the board”, the report states, with the exception of Champagne, which, on price, has performed positively in both sectors.

As David Gleave MW, managing director of Liberty Wines, adds: “We have seen a shift in the Champagne market. It used to be that ‘Champagne’ was the brand people requested, so cheaper examples were listed alongside more expensive ones. Now, increasingly knowledgeable and discriminating consumers are asking for Grand Marque premium producers by name. They are the brand, rather than the Champagne as a whole.”

Higher end

Bollinger teams up with chef Phil Howard on a pairing for its Bollinger R.D 2004

This upward march is borne out by wine and spirits supplier Enotria & Coe, which reported that its sales of Champagne in the on-trade have been positive, particularly at the higher end. This year, it took on a new grower Champagne brand, Alfred Gratien, in response to demand for something “exclusive” with “provenance and a story”, says Harriet Kininmonth, head of wine buying.

“We have seen some good growth this year, with volumes up by 13% and value up by 21%,” she reports. “Delving into that, certainly the major brands that are performing well – LVMH and Taittinger – and almost all of our vintage and prestige cuvées are in growth, which we see as a positive result of the premium trend and prestige value sales.”

Champagne is a master at playing to its strengths, and is equipped to weather any storm, but the UK on-trade can be a fickle and fad-driven channel, made more turbulent by Brexit and a tiny 2017 harvest. In these choppy waters, Champagne is as vulnerable as any other setting sail for UK shores – but for now at least, everyone is in the same boat.