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UK Champagne sales surpass rest of Europe
Champagne sales in the UK off-trade have outperformed those in the rest of Europe during 2024, particularly in value terms, reports Giles Fallowfield.
While total volume Champagne sales have been falling in the UK – they dropped 13.5% in the first nine months of 2024 – at the same time value rose by 8.1%, according to AC Nielsen MAT figures.
And as we enter the crucial final trading period – around 40% of total Champagne sales are made in the last eight weeks of the year and around 25% in the final three weeks – volume was only down 1.2% and value 0.5% in the ten months to 1st November (Nielsen).
These figures suggest the UK is performing much more strongly than the rest of Europe, where shipments overall fell 18% (Jan-Sept) and in France where they dropped 10.1% in the first nine months.
Champenois strategy
Retail prices may have risen generally but if the Champenois strategy is mainly about adding value in the face of steeply rising costs then this clearly looks like a more efficient trading model.
The UK market has been changing in other ways too. In the first ten months of 2024 private label sales were up by 8.4% in volume and 8.3% in value.
The previous decline in own-label partly relates to tight grape supplies and higher grape prices dating back to the shortages from the low official yield of 8,000kgs/ha set in 2020 as Covid hit confidence, followed by the small frost and disease hit 2021 harvest.
However, stocks were rebuilt in 2022 when yields were set at 12,000kgs/ha, the highest level for a decade and 2023 when the available yield was only slightly lower at 11,400kgs/ha.
Augurs well
Something that augurs well for the remainder of 2024 is the fact that there are now good inventories of vintage and rosé Champagne available. There was a shortage last year in this sector of the market which accounts for around 23% of total Champagne by value in the UK.
In the on trade, London is faring better than the regions and while hotels remain the backbone of consumption, anecdotal evidence suggests that higher room rates are leaving customers with less to spend on champagne in their bars and restaurants.
While there has been talk of a booming sparkling wine market, Champagne has also been outperforming Cava and Prosecco. Italian sparkling wine was down 1.8% in value but up 3.4% in volume in the first ten months of 2024 with Spain (Cava) losing 13.8% in value.
French sparkling wine, in other words Crémant, was up 9.1% to 1st November while English Sparkling was down 3% in volume but up 0.4% in value. As one UK agent commented, “Champagne remains the fizz of choice when it comes to romance and celebration”.
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