After two years of record sales, champagne’s current problem is that prices are constantly rising.
Sales are expected to reach around 314 million bottles in 2023, down 3.5% from the previous year, according to a projection by the Comité Champagne trade group. “Prices have gone crazy,” says Laurence Alamanos, global export director for champagne house Ayala. “It’s a little hard for our everyday consumers to follow.”
Champagne houses say rising costs of grapes, shipping and energy are a factor. But price increases have outpaced inflation, and since champagne is already a high-priced category, recent price hikes have become a bit too aggressive, resulting in a decline in volume.
All eyes are on the holidays, with champagne sales booked up to 50% in the last four months of the year. Cyril Delarue, business development director at Bollinger, says the sector’s performance was solid in November. “December is a big question mark,” he adds. “Next year will be difficult”
NOT SPANKED IN LOCKDOWN
In the decade before the COVID pandemic, champagne sales had experienced a slow and steady decline. Shipments fell 18% in 2020, but rebounded sharply over the next two years as drinkers looked for something to celebrate. There were also small harvests in the two years that coincided with the pandemic, leading to some product shortages as demand increased.
“Some brands have clearly taken advantage of this,” says Delarue. Bollinger was more logical, but he also had to react to the market to maintain his superior price compared to his competitors.
“The consumer wants more premium, high-end champagne,” says Delarue. “The knowledge of the Champagne consumer is getting better and better. “They want to know not only the brand, but also where the grapes come from, how they are made and which village they come from.”
Bollinger’s PN series, produced entirely from Pinot Noir, has been targeting fine wine collectors in recent years. Priced at $120 per bottle, each new expression comes from a different village in Bollinger’s vineyards.
“We are a little sad to see that the eventful years of the last three post-COVID years have slowed down, but we are quite pleased with the position that champagne has gained in recent years, from being just a celebratory drink,” says Alexander Michas, CEO of New York-based wine importer Vintus.
WHEN EVERY DAY IS A HOLIDAY
Champagne has historically been associated with major holidays and life events such as New Year’s Eve or weddings. But brands have educated drinkers on new moments to enjoy Champagne beyond the festive, including pairing it with food. Some champagne houses are also reducing their carbon footprint by producing lighter bottles or using recycled materials in gift box packaging.
“Consumers may drink a little less, but they will pay more attention to what they drink and will be willing to pay more for something they know is of better quality and aligns with their values. “There is,” says Michas.
“Perrier-Jouet and G.H. Pernod Ricard’s wine and champagne brand manager Kerri Owen says demand for Mumm is constantly growing. Perrier-Jouët Belle Epoque Cocoon, for example, is 93% lighter than previous bottles and made from natural materials such as paper pulp. Owen says Pernod Ricard is “trying to present champagne as a true fine wine for traditional special occasions, while also trying to serve all the little moments.”
Drinkers are also turning to Champagnes that offer a fresher style, often with less added sugar. “People are interested in knowing what’s going on inside their bodies,” says Isiah Thomas, owner of Cheurlin Champagne. The NBA Hall of Famer says their champagne adds zero sugar and keeps prices under $50.
But the best selling point may always be Champagne’s unique and festive history. “Great champagne, like great wine, is an incredible agricultural product,” says Michas. “This is something to celebrate.”