Champagne Rebounds, With Some Marketers Seeing Frugality Fatigue
June 2, 2011Champagne shipments came back strong in 2010 after a dismal 2008 and an even worse 2009. Shipments jumped 8.9% to 26.63 million cases worldwide in 2010, according to Impact Databank. That’s still 1.6 million cases shy of Champagne’s peak year in 2007, but it represents a turnaround from the downward pressures of the past two years. Total value increased by 8.6% to EUR4.15 billion ($6b), according to Impact Databank.
The top 10 Champagne brands worldwide all registered volume growth in 2010. That’s a major improvement from 2009, when every top-10 brand declined. Moet & Chandon remains by far the global leader at 2.73 million cases last year, a 13% gain. Veuve Clicquot advanced 10.5% to 1.32 million cases, followed by Nicolas Feuillatte with a 15.5% increase to 675,000 cases. Mumm registered a 6.1% gain to 635,000 cases, while Laurent-Perrier rounded out the top five with a 10.3% jump to 535,000 cases.
But competition remains fierce. Pascal Boyé, director of sales and marketing for North and South America for Champagne Nicolas Feuillatte, says people haven’t yet returned to their pre-recession habits. “The consumer is different than three or four years ago,” Boyé continues. “They’re far more price conscious, they’re smarter, and they’re looking for value.” But some marketers are seeing positive signs. Michelle DeFeo, executive vice president, Laurent-Perrier U.S., says: “Consumers are showing signs of ‘frugality fatigue,’ and are increasingly willing to spend on luxury goods such as Champagne.”
Shipments of Champagne to the United States jumped 34.9% to 1.41 million cases in 2010. Major export markets in Europe also rebounded last year, although not at the same pace. The United Kingdom, Champagne’s largest export market, recorded a 16.3% increase to just under 3 million cases in 2010. Germany grew 21.6% to 1.11 million cases, with value growth at 9.8%.
| US – Top Five Champagne Brands (thousands of nine-liter case depletions) |
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| Percent Change1 | |||||||
|---|---|---|---|---|---|---|---|
| Rank | Brand | Company | 2008 | 2009 | 2010 | 2008-2009 | 2009-2010 |
| 1 | Moet & Chandon2 | Moet-Hennessy USA (LVMH) | 415 | 385 | 405 | -6.7% | 5.0% |
| 2 | Veuve Clicquot | Moet-Hennessy USA (LVMH) | 360 | 345 | 365 | -4.2% | 6.3% |
| 3 | Perrier-Jouet | Pernod Ricard USA | 80 | 62 | 68 | -22.5% | 9.7% |
| 4 | Piper Heidsieck | Remy Cointreau USA4 | 65 | 50 | 50 | -23.1% | 0.0% |
| 5 | Nicolas Feuillatte | Ste Michelle Wine Estates | 45 | 40 | 39 | -10.7% | -2.9% |
| Total Top Five3 | 965 | 880 | 930 | -8.4% | 5.2% | ||
| 1based on unrounded data 2excludes Dom Perignon 3addition of columns may not agree due to rounding 4recently sold to EPI Source: IMPACT DATABANK |
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Tagged : Champagne, Laurent-Perrier, Moet & Chandon, Mumm, Nicolas Feuillatte, Veuve Clicquot
