Champagne Marketers Eye Renewed Growth In Second Half

The Champagne category has slipped in the U.S. the past two years, but after stabilizing in the first half of 2024, there could be renewed growth on the horizon. According to Impact Databank, total U.S. Champagne depletions declined 12.5% to 1.58 million 9-liter cases in 2023. The top 20 brands account for 94% of the market, led by Moët Hennessy’s duo of Veuve Clicquot and Moët & Chandon, which remain not only far and away the largest Champagne labels stateside, but also the top two wine brands overall by retail dollars among all wines priced at $25 and over.

While depletions slid last year, they outperformed shipments, with Champagne exports to the U.S. down 20% by volume to 2.2 million cases and 14.5% by value to €810 million ($869m). Still, the U.S. remains the largest export market for Champagne, ahead of the U.K. And per-case shipment value to the U.S. continues to rise, reaching €361 ($387) last year, up 25% since 2020, and well ahead of second-ranked Japan.

“The double-digit declines caused by destocking and weakened consumer demand last year have eased in 2024,” Laurent-Perrier US president Michelle DeFeo told SND. “After a challenging 2023, we’re back in growth mode in 2024 with on-premise as the key driver and accounts sold up across channels.” In particular, Laurent-Perrier is seeing solid results at the top end of the market with prestige cuvée Grand Siècle, which is backed by a media campaign featuring Morgan Freeman.

Piper-Heidsieck, imported by Folio Fine Wine Partners, has also emphasized the high end with its Essentiel tier, which most recently launched a Blanc de Noirs expression. “Vintage Champagnes and prestige cuvées are gaining popularity,” notes portfolio brand director Irene Habermeier. “Piper-Heidsieck faces the same headwinds taking place across the category, mostly impacted in off-premise channels. On the upside, the brand is growing in the on-premise.”

Fellow top-10 player Lanson, imported by Terlato, has raised its U.S. profile in recent years, with volume now roughly twice as large as pre-pandemic at 30,000 cases. Bollinger, handled by Vintus, has held steady the past few years despite the tough climate. The brand recently introduced two new prestige cuvées: La Grande Année 2015 ($268) and La Grande Année Rosé 2015 ($307).

The Groupe Bollinger portfolio also includes Champagne Ayala, likewise imported by Vintus. Hadrien Mouflard, managing director of Ayala, told SND that a decade ago the house was “a sleeping beauty” producing about 600,000 bottles annually. Now, it’s upped its output to 1 million bottles (83,000 cases), and is expanding capacity by about 25% with an eye toward further growth.

While the category has slipped the past two years, new players continue to enter with an eye toward future growth. Nicolas Feuillatte owner Terroirs et Vignerons de Champagne (TEVC) acquired the Henriot Champagne brand from Francois Pinault’s Artemis Domaines last year for an undisclosed sum. This month, California wine giant Jackson Family Wines began handling Henriot ($60-$230 a bottle) in the U.S., marking its entry into Champagne. The new agreement will bring Champagne Henriot (with current volume of about 10,000 cases) to “a wider audience in the U.S.,” according to Jackson Family CEO Rick Tigner.

Also, Napa Valley-based importer and marketer Demeine Estates added the Philipponnat Champagne brand to its portfolio late last year. Known for its focus on Pinot Noir, Philipponnat sells around 10,000 cases annually in the U.S., with a portfolio ranging from Royal Reserve Brut NV at $45 a 375-ml. up through prestige level Clos des Goisses at $500 a bottle.—Daniel Marsteller

Tagged : Ayala, Bollinger, Folio, Henriot, Jackson Family Wines, Lanson, Laurent-Perrier US, Moet & Chandon, Moet Hennessy, Nicolas Feuillatte, Piper-Heidsieck, Terlato, Veuve Clicquot, Vintus

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