You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Monday 6 July 2015

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 *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

How to drink like a billionaire

With access to tropical islands, private yachts and the best food and drink more...

Mumm releases Santana sparkler

Legendary guitarist Carlos Santana has teamed up with Mumm Napa to release a more...

Wimbledon serves up English wine

Organisers of this year’s Wimbledon have decided to offer tennis fans English more...

PR Manager

Competitive

Diageo closes in on £200m Gleneagles deal

Drinks giant Diageo is reportedly “close” to agreeing a sale of its luxury more...

Mumm releases vintage collection

Champagne Mumm has released a new “Collection du Chef de Caves”, featuring more...

Armand de Brignac launches its most expensive Champagne ever

Jay-Z’s Champagne brand Armand de Brignac has launched its most expensive more...

Auction house snaps up online wine specialist

Online auction firm Bid for Wine has been sold to The Fine Art Auction Group in more...

Asda warns suppliers of Champagne scam

Asda is warning suppliers to be on guard after several companies received more...

Champagne needs to 'create a new occasion'

Champagne needs to "create a new occasion" and better communicate its brand if more...

Global Wine Buyer

London, United Kingdom

Competitive

Sud de France launches Wine Hub

An "innovative" tool designed to support wine producers and importers operating more...

Lidl hints at plans for online wine shop

UK supermarket Lidl has not ruled out launching an online wine shop, reporting more...

Vinadeis unveils Languedoc 'black diamonds'

One of France’s largest wine producers has launched a high-end Languedoc more...

Hatch Mansfield – Brand Manager

London, United Kingdom

Competitive salary

Pimm's and English wine sales leap

UK supermarket Waitrose has noted a surge in sales for Pimm's, strawberries and more...

Hardys invests £4m in summer of cricket

Hardys has unveiled a new £4 million consumer marketing campaign to tie in more...

UK importer confident of Champagne comeback

One leading UK Champagne importer is optimistic for the future of the category more...

Warehouse Supervisor

London, United Kingdom

£27,000-£30,000 depending on experience

China recognises 'Bordeaux'

China has said it now recognises the term “Bordeaux” as a brand after what more...

Top 10 wines in the UK press

An English fizz fit for Wimbledon, a "chunky, berry-stuffed" Negroamaro and a more...

Tesco sales take a tumble despite price cuts

Tesco's like-for-like sales fell by 1.3% in the three months to 30 May, an more...

Social Media Editor

Competitive

The Tour de l'Oc in pictures

A pictorial report of the highs and lows of the Tour de l'Oc cycling challenge more...

William Grant in World Cup deal

William Grant & Sons has been awarded exclusive spirits and champagne pouring more...