Deep discounts drive Champagne sales

21st January, 2013 by Patrick Schmitt

Deep discounting over the Christmas period in the UK and France has led to Champagne volume growth in the major multiples but also one bankrupt supplier.

Deep discounting

Asda sold almost 250,000 bottles of £10 Champagne in the last week of December

Retailers in Champagne’s two largest markets employed aggressive price cutting tactics to entice shoppers during December, while suppliers of inexpensive supermarket labels struggled to make money as they attempted to absorb the increasing cost of grapes.

The latest figures to be released in the UK show that supermarket chain Asda achieved a 25% increase in Champagne sales over December from an aggressive deal on its exclusive label Pierre Darcys.

Having slashed its price from £23.98 to just below £10 a bottle, the supermarket reported sales of almost 250,000 bottles in a single week in the run up to New Year’s Eve.

Overall Champagne sales at Asda were up 17% in 2012 compared to the previous year, increasing the retailer’s share of the Champagne market by 1.7%.

Certainly the supermarket’s Christmas Champagne deal was the most aggressive year-end offer in the UK market, with the next cheapest bottle available at Tesco, where De Vallois had its price cut from £28.99 to £14.49.

Nevertheless, Morrisons had previously offered the deepest discount, having cut the price of its Hubert Marie Champagne from £28.99 to £10 for one week only until Sunday 2 December 2012.

For suppliers however, rising grape costs in Champagne are making it increasingly difficult to provide Champagne at such low prices.

Indeed, as previously reported by the drinks business, one supplier of several exclusive Champagne labels, Pressoirs de France, has gone into administration, unable to make a profit on bottles sold for as little as €8 a bottle.

Although UK retailers were certainly aggressive in their Christmas Champagne deals, the discounts were deepest across the Channel in the French supermarkets.

Leclerc sold Champagne in a half price loyalty card deal which allowed shoppers to effectively buy a bottle for €5.45

Retailer Leclerc was even selling Champagne in a half price loyalty card deal which allowed shoppers to effectively buy a bottle for €5.45 (€10.90 would buy them a bottle of Champagne and a €5.45 voucher to spend on food in-store the following day).

The Champagne for this offer, the Laurence D label, was supplied by Nicolas Dubois of the now bankrupt Pressoirs de France.

However, Asda’s Pierre Darcys label was supplied by cooperative Union Vinicole des Coteaux de Bethon (UVCB), which is also producer of the Paul Laurent brand.

Despite the depth of the Champagne discount at Asda, sparkling wines outsold Champagne at the retailer, with Cava and Prosecco spearheading volume growth.

Together, Champagne and sparkling wine enjoyed 28% year on year sales increase at the supermarket in 2012.

One Response to “Deep discounts drive Champagne sales”

  1. Ravi Singh says:

    Affordable Champagne is very important even for the stratospheric creations as you have to
    retain the consumer, who may also scale up.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Sales Manager – Midlands and South West

Pol Roger Portfolio
Midlands and South West

UK Brand Ambassador - That Boutique-y Gin Company

That Boutique-y Gin Company
Tunbridge Wells, Kent, UK

Senior National Account Manager – Grocery (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Senior National Account Manager – Wholesale RTM (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Digital Marketing Manager

Master of Malt
Tunbridge Wells, Kent, UK

Experienced On Trade Sales Person

Borough Wine Imports
London, GB

3 x Business Development Executive

The Lakes Distillery Company Limited
Newcastle head office and nationwide, UK

Editor

Master of Malt Ltd
Tunbridge Wells(Kent)

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Brand Manager

Hallgarten Druitt
Luton, UK

Experienced On-Trade Salespeople Required

Portal Wines and Spirits
London, UK

Purchasing and Sales (Wine Trader)

JF Tobias
London, UK

The Global Merlot Masters 2017

Deadline : 17th April 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 14th April 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more