1.1 Definition and scope of study
Champagne is an effervescent wine made from grapes grown in the Champagne region in France, using three grape varieties in the vast majority of cases: Pinot Noir, Pinot Meuniere and Chardonnay. These grapes are fermented to obtain a wine that contains about 10% alcohol by volume. Champagne is an Appellation d'Origine Contrôlée (AOC) for which the production process is strictly regulated .
Various countries may produce sparkling wines similar to Champagne, but none can be sold or labelled as Champagne Champagne is in competition by French wines such as Alsace or Loire crémants, or by Italian Prosecco or Spanish Cava, but also to a lesser extent by English sparkling wines.
Champagne sales to the United Kingdom have fallen sharply since the Brexit announcement suffering from both the depreciation of the pound sterling and a decrease in the number of bottles sold, which were only partially offset by the increase in the unit price of the bottles. Uncertainties regarding the United Kingdom's exit from the European Union will continue to penalize Champagne sales, and the growth forecasts for this market are therefore almost nil.
1.2 An average year 2018 for Champagne sales worldwide
In ****, ***.* million bottles of Champagne equivalent ** cL were sold worldwide, for a total turnover of €*.* billion [***]
Champagne winegrowers are highly dependent on exports of Champagne all over the world. In ****, these represented **.*% of the total volume of Champagne production, and even **.*% in value terms . [ Champagne Committee ... This proportion is up from ...
1.3 The United Kingdom, second largest consumer of Champagne after France
The British are, after the French, the second largest consumers of Champagne in the world with a total sales of £***.* million in **** (***). Sales have increased by an average of *% per year since ****, but are expected to contract by -*.*% per year over the ****-**** period, according to forecasts by Euromonitor .
1.4 Summary of market determinants
Below is a summary and qualitative evolution of the various criteria that have a direct impact on Champagne sales in the United Kingdom. This table summarizes the latest trends observed and is expected to continue in the coming years.
2.1 Alcohol consumption in the United Kingdom falling
Alcohol consumption in the United Kingdom has declined in recent years from an average of **.* litres per year in **** to *.* litres in ****. [***]
If we look in more detail at the consumption of sparkling wines and champagne in the United Kingdom, a Kantar media study for the year **** shows that *.** million ...
2.2 Typical profile of British consumers
The British are generally good lovers of alcoholic beverages especially men between ** and ** years of age. Indeed, according to a survey NHS Digital in December ****, this cohort would consume **.* units of alcohol per week in **** (***) compared to only **.* units for women in this same age group. Overall, the difference between men ...
2.3 Demand for non-milk crude oil
Among the different qualities of Champagne offered by the sector, the British consume mostly non-vintage crude oil . This represents **.*% of the total number of bottles imported in ****, and **.*% in value. [ Champagne Committee ... Among the other qualities offered, we find rosé Champagnes, prestige vintages, higher doses at Brut, lower doses at brut ...
2.4 A trend towards moderation and quality
**% of Britons say they are willing to pay more for quality alcoholic beverages and **% enjoy discovering new things. In addition, **% of Champagne buyers are between ** and ** years old, which is significantly higher than the weight of this age group in the population (***). Thus, the challenge for Champagne will be to reaffirm ...
3.1 The pampered brands of the British
Moët et Chandon, a brand of the Moët Hennessy group owned by LVMH, is by far the preferred Champagne of the British, with *.** million consumers in **** according to a survey Kantar Media . The group also owns the Champagne houses Veuve Clicquot, Don Pérignon, Krug and Ruinart, among others. ...
3.2 Champagne in supermarkets and online
Supermarket and hypermarket sales in the United Kingdom account for the bulk of total Champagne bottle volumes sold on the territory, with **.*% market share . The other distribution channels are divided between specialised stores (***) for **.*%, and Internet sales for **.*%.
The latter distribution channel has grown significantly in recent years, from *.*% of total ...
3.3 Details of Champagne shipments
The shipment and sale of Champagne bottles is divided between the traditional Champagne houses like all the brands mentioned above, the independent winegrowers (***), and the cooperatives in the region which bring together the grapes and/or Champagne of several wine growers to market Champagnes on their behalf.
In ****, traditional houses accounted ...
3.4 The threat of Brexit
In ****, the United Kingdom took the decision to leave the European Union, thereby implying an exit from the single market. This allowed duty-free movement between the United Kingdom and the rest of the EU countries. On ** October ****, the country could finally leave the European Union, as Boris Johnson recently indicated. [***]
4.1 Packaging and sales formats
The different sizes of Champagne bottles
There are more than ten different formats of Champagne bottles each with a specific name. Some formats were first designed in a practical sense, others are more collectible bottles, especially towards large volumes. [***]
The quarter: ** cl (***), mainly used in airlines and shipping companies Half bottle ...
4.2 Local and international pricing
The price of Champagne bottles varies greatly depending on the country of destination . It is obviously cheaper in the country of production, i.e. exclusively in France, and can quickly explode in some countries where demand is very high.
For example, the strategic market research firm Euromonitor has carried out a ...
4.3 Champagnes, blends and cocktails
More and more of emerging mixology recipes with the main ingredient champagne. This product, which was initially drunk alone at festive events, is gradually being combined with other ingredients for adapt to market demands .
Trendy Champagne cocktails include mimosa (***).
On another trend, organic Champagne is also developing, and producers are gradually ...
5.1 A strictly controlled appellation
The the rules of the Appellation d'Origine Contrôlée Champagne are very strict and concern in particular:
A strictly defined area . A list of authorised grape varieties Chardonnay, pinot noir, miller, pinot blanc, pinot gris, arbane, petit meslier A size of the regulated vine : Royat, Chablis, Guyot, Vallée de ...
5.2 Labelling and mandatory information
Mandatory information must appear on the label affixed to the bottle [***]
The sales description consisting of the designation "Champagne" must appear in very obvious characters and repeated on the part of the cap contained in the neck of the bottle or, in the case of a bottle with a nominal content ...
5.3 Sale of alcohol in the United Kingdom
Within the British territory, the sale of alcohol is strictly limited to pubs, restaurants, and licensed shops . There are two permits to sell alcohol in the United Kingdom:
A settlement permit which prescribes the hours and conditions of sale A personal permit which allows natural persons to sell alcohol or to ...
- Moët et Chandon (Groupe MHCS / LVMH)
- Laurent Perrier
- MHCS (Veuve Cliquot, Moet et Chandon)
- Groupe MHCF (Dom Pérignon)
- Charles Heidsieck
- Piper Heidsieck
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