Champagne in danger of self-destructing, warns expert

Published: 05 January, 2010

Champagne could lose its status as an aspirational drink through "dangerous" price promotions in supermarkets, according to a leading business expert from the region.

Champagne could lose its status as an aspirational drink through "dangerous" price promotions in supermarkets, according to a leading business expert from the region.

Dr Stephen Charters, chairman of Champagne management teaching at Reims Management School, said some brands could be bought cheaper in the UK and even Australia than from the cellar door.

This short-term strategy for raising revenue in response to the worldwide drop in sales threatens the long-term image of Champagne, he warned.

"Unfortunately, marketing Champagne is too often focused on price, which is dangerous as it may send out the wrong signals about Champagne's quality and reputation", said Charters. "It reduces the exclusive nature of Champagne, and threatens its long-term position as an aspirational drink - the best used to provide the best form of celebration.

"Rather than selling cheap they need to develop new marketing methods which are based on long-term supportive methods for the products and develop their existing image: for example, wine tourism to the Champagne region; long-term niche marketing; targeting lesser-known countries or specific market segments; redoubling the effort to show the quality and authenticity of the product, particularly in the face of challenges from newer styles of sparkling wines."

He predicted sales and exports would remain flat for the moment. Worldwide sales tumbled in 2009, dropping by over 42% in the first six months of the year. For the nine months to September 30, 2009, shipments were down 19.8% on the same period in the previous year.

The biggest reduction in sales were in the US and Japan.

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