Retailers need ‘more coherent’ fizz offer

27th May, 2014 by Gabriel Stone

A slide in supermarket own label sales is holding back Champagne’s UK performance but provides a major driving force for Prosecco, according to Champagne Lanson’s third Annual Category Report.

Champagne-491x640Drawing on sales data from Nielsen and CGA Strategy, as well as consumer data gathered by Futuresight, the report indicated a 3% volume slide for Champagne in the UK off-trade, in contrast to 3.1% volume growth in the on-trade sector.

While noting that “branded Champagnes have seen significant growth”, the report highlighted a -16% value decline for own label and tertiary products. By contrast, it pointed to a 90% increase for Prosecco own label during the last year, which underpinned the category’s 54.6% value uplift.

According to the report, Prosecco’s growth is coming primarily at the expense of still white wines and even spirits, although it also goes some way towards explaining the slide in supermarket own label and tertiary label Champagne.

Despite the growing popularity of Prosecco, whose global volume sales outstripped Champagne for the first time last year, the research demonstrated that Champagne remains the preferred choice for gifts and more formal celebrations such as weddings. However, at larger events sparkling wine’s lower price point has seen it edge ahead.

Based on these findings, the report offered a number of recommendations, including the “need to build ‘discernment’ into the Champagne category highlighting its superior taste, hand made craftsmanship and premium quality.”

This echoes the argument made earlier this year by Andrew Hawes, managing director of Bollinger’s UK agent Mentzendorff, who called on the Champagne category to shout more loudly about the factors which distinguish it from other sparkling wines.

Lanson’s report also advised retailers to “develop their own label Champagnes into brands with their own stories to engage consumers”, as well as “adopt more rigorous category management approach to sparkling to ensure a more coherent pricing ladder with related categories.”

Paul Beavis, managing director of Lanson International, highlighted a number of lessons from the report, commenting: “We see the growth of Prosecco as a positive as it moves more consumers into ‘bubbles’. What we can learn from it is that telling Lanson’s taste and quality story is more important than ever.

“The way we live today presents many occasions to consume Champagne, from the very big to the everyday. By further understanding customer behaviour and implementing our recommended strategies for profitable growth, we believe retailers will see significant benefit,” he added.

Leave a Reply

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

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Job vacancies

Senior Customer Marketing Manager

Conviviality Group
London or Bristol, UK

Customer Marketing Manager- 12 month FTC

Conviviality Direct
London, UK

PR Account Executive

Clementine Communications Ltd
Fulham, UK

Marketing Manager

Berkmann Wine Cellars
London, N7, UK

Brand Manager

Berkmann Wine Cellars
London, N7, UK

Sales Account Manager

Jascots Wine Merchants
London, UK

Marylebone Sales Manager

Philglas & Swiggot
Marylebone, London, UK

Area Sales Manager

Bon Coeur Fine Wines
North England, UK

Procurement Assistant – Wine

Adnams PLC
Southwold, UK

Account Manager Central London

Speciality Drinks Ltd
London, UK

Brand Ambassador

Speciality Drinks Ltd
London, UK

National Business Development Manager

Speciality Drinks Ltd
London, UK

Marketing Assistant

Hatch Mansfield
Ascot, Berkshire, UK

Marketing Manager

Bancroft Wines
London, UK

The Global Sparkling Masters 2017

Deadline : 25th August 2017

The Global Malbec Masters 2017

Deadline : 25th August 2017

Global Chardonnay Masters 2017

Deadline : 1st September 2017

The Global Sauvignon Blanc Masters 2017

Deadline : 1st September 2017

Click to view more

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

The Global Organic Masters 2017

The drinks business is thrilled to announce the launch of The Global Organic Masters

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Click to view more