Sector Insight: champagne and sparkling wine

Moet & Chandon Brut Imperial
Moet & Chandon Brut Imperial

Brands are battling bargain-hunters and a general decline in drinking

Five Key Trends

Sparkling wine. Use of sparkling wine continues to grow (both in the on- and off-trade) and is increasingly seen as a credible alternative to champagne. Sales have increased 55% (2007 to 2012) to reach £720m.

UK. In terms of imports of champagne, the UK remains the leading market globally importing 34.5m bottles in 2011 (out of 323m shipped in total) although it is declining.

English sparkling wine. Although still a niche segment it is growing in popularity. As its reputation has improved, sales have grown and are predicted to reach £25m in 2012.

Demographics. The 25 - 34 year old group is forecast to grow and this is the group with the highest use of both champagne and sparkling wine.

Alcohol drinking. The number of adults drinking alcohol is declining as a result of both health considerations and wanting to save money. Champagne drinking is falling, with sales dropping 27% (2007 to 2012) to an estimated £690m.

Promotions. Despite its luxury status the champagne category has been hit by price cuts and promotions, to the extent that 53% of drinkers say they won't pay for it unless it's on promotion.
 
Source: Mintel

Top-selling champagne brands in the off-trade (£m)

Source: Mintel

Top-selling sparkling wine brands in the off-trade (£m)

Source: Mintel

 

The Industry's Main Players

Elsa Corbineau, marketing director, Moët Hennessy UK

Corbineau has held the marketing director role since the beginning of 2010, having previously been international marketing manager for its Veuve Clicquot champagne brand. She worked in marketing at Colgate-Palmolive in its European division for a number of years as well as a stint at Danone early in her career.

 

 

 

Patrick Venning, marketing director Pernod Ricard

Among Venning's responsibilities at Pernod Ricard are marketing for its wine and champagne brands such as – Mumm, Jacob's Creek, Perrier Jouët and Campo Viejo (cava). Venning became marketing director in January 2012 when he took over the role from Vlastimil Spelda. Previous roles in Pernod Ricard include integrating brands following the acquisition of Allied Domecq. He has worked at P&G and Birds Eye also.

 

 

Suzanne O’Hara, Head of Marketing, Freixenet UK

In the early part of O'Hara's career she worked in brand marketing roles in Dublin and Tokyo before moving to the UK where she worked as UK brand manager for Lyon-based Distriborg Group. After a stint as international brand manager for Twinings from 1999 to 2002 she joined Freixenet as senior brand manager. She left the business for a number of years before returning as head of marketing in June 2010.
Liam Newton, UK marketing director, Bacardi Brown-Forman Brands

Newton had led the UK marketing team since January 2010 and his remit covers all its brands including the Martini ones. He has previous experience of the drinks industry as brands director with InBev UK and also worked in marketing for Nestle Rowntree across its confectionery portfolio.

Winners and Losers in the carbonated soft drinks sector

Moët & Chandon. This remains the largest champagne brand in the UK accounting for 10% of champagne sales (5% of overall market) although its sales dipped slightly in 2011.

 Freixenet. Cava in general continues to perform well and  this is one of the few leading brands to see sales grow in 2011 holding onto a 9% share of sparkling wine (5% of overall market).

Lanson. Sales in the off-trade dropped by 30% between 2009 and 2011 as it was one of several big name champagne brands to have a difficult time as cheaper brands gained sales.

Source: Mintel

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug
Thetrainline.com backs 'rubbish' mobile app with TV ad
Powerade launches global World Cup campaign
Burberry's flagship Shanghai store facade responds to weather changes
Subway considers taking fast food to fast lane with F1 sponsorship
Ikea splurges 'grey' Belgium with colour
Grim outlook for Tesco boss Philip Clarke ahead of expected profits fall
Thomson to create first crowd-sourced wedding decided by Facebook fans
Currency wars meets origami in Alpari FX trading ad campaign
Amazon rumoured to launch 3D smartphone in September
Facebook to allow European users to store and transfer money on site, claims report
Unilever pilots multi-brand advertising with YouTube beauty channel
Lego, Coca-Cola, Net-a-Porter, Bitcoin and AOL: the digitally creative brands
Dove tries to tell women their beauty is innate through placebo patches
Wonga faces social media storm after forcing Twitter to remove satirical material
Spotify tells the stories of relationships with music
Skype contrasts real stories with 'saccharine' style of Google and Apple
Top 100 UK advertisers: BSkyB increases lead as P&G, BT and Unilever reduce adspend
Viral Review: One Direction perfume 'prankvert' should have been a bigger hit
German beer brand Warsteiner tells drinkers to 'do it right'
SSE signs 10 year deal to sponsor Wembley Arena
Co-op bank posts losses of £1.3bn and expects no profits for two years
Morrisons digital boss Simon Harrow to leave the business
Tesco boss Philip Clarke backs CMO Matt Atkinson's 'enormous contribution' to brand