Discounts threaten Champagne market

Supermarket discounts are a bigger threat to Champagne sales than the booming Prosecco market, retailers at the Harpers Champagne Summit agreed.

The Champagne category has been hit by big declines in the on-trade and has seen only modest growth in the off-trade. Speakers condemned the role that promotional activity was playing but agreed there were ways of re-engaging with consumers.
There was also general criticism of "unjustified" price increases passed on by suppliers.

Xavier Rousset, head sommelier and partner at Texture in London, said he had been dismayed on supermarket deals offering Bollinger for £17 at Christmas.
"The first thing that comes to mind is that I delist it," he said. "I know it's not Bollinger's fault but that's the influence the supermarkets have sometimes."

He added: "We've seen significant growth in other better value sparkling wines such as Prosecco which is booming and cava and other sparkling variants. They're more competitively prices and quality is ever-improving and this has cost the Champagne category within our business."

Helen Davey, wine category manager at Waverley TBS, added: "Nobody would say 2009 was a great year for Champagne sales as consumers really tightened their belts.
"We were concerned at the completely unjustified price increases that grande marque Champagnes pass on to us year after year. It's made things increasingly tough for Champagne in our business."

Oddbins owner Simon Baile said his focus was increasingly turning to smaller-scale Champagne producers, with whom the company could create a long-term relationship. Meeghan Murdoch, owner of the Wine Circle merchant in Virginia Water, Surrey, said her business was following a similar policy.
Many delegates and speakers agreed that Prosecco's recent success was not necessarily a problem for Champagne.

James Manson of Taittinger agent Hatch Mansfield said: "Champagne has gone through recessions before and came out fighting the other end. As the economy recovers and people are able to borrow money again we will see Champagne make that recovery. Whether Prosecco then suffers, I don't know. Maybe it will have grafted a category for the younger consumer."

• Sommeliers