Taking the fizz out of the recession
23 December 2009
Worldwide sales of champagne took a tumble in 2009, dropping by over 42% in the first six months of the year.
Categories:
Enterprise
By Helen Mayson
The economic climate has taken its toll on the major champagne houses, who reported a sharp drop in sales at the start of the year. Champagne shipments to Britain were down 30% on the year by September, while in other regions the sparkling stuff fared even worse, with the biggest reduction in sales outside the European Union, most markedly in the US and Japan.
"The 2009 results reinforce what we have always said – that champagne is a bellwether for economic activity and economic confidence," said Stephen Charles, head of the unique chair in Champagne management at Reims Management School in France.
Charles criticised the decision of many champagne houses to market champagne on price, which reduces the exclusive nature of the drink. "Rather than selling cheap, they need to develop new marketing methods and develop their existing image," he said.
Despite these warnings, Sainsbury's has reported that its decision to sell Lanson champagne for just £14, at a small loss per bottle, has made it the third most popular item in the run up to the festive period.
