Brexit, Yellow Vests Take Fizz Out Of Champagne Sales
Brexit and France's ‘yellow vest’ protest movement pushed the number of bottles of French champagne sold last year to its lowest since 2004, trade group data has shown.
The Comité Interprofessionnel du Vin de Champagne (CIVC) said the number of bottles sold fell 1.8% to 302 million in 2018, though total revenue edged up 0.3% to a record €4.9 billion as prices rose.
"The fall in volume is becoming a bit worrying, with the slowdown in France and Britain not compensated by higher sales outside the European Union," CIVC co-president Jean-Marie Barillere told Reuters.
French and UK sales together account for about 60% of total sales by volume. French sales fell 4.2% to 147 million bottles, with more bottles sold abroad than in France for the first time in 100 years, as a slow economy and the yellow vest anti-government protest movement weighed on sales.
Barillere said the protests had hit Paris tourist arrivals and French household confidence, hurting demand.
Total export sales edged up 0.6% to nearly 155 million bottles, but total export revenue rose 1.8% to €2.9 billion as the focus on value of big houses, such as LVMH's Moët & Chandon and Pernod Ricard's Mumm, the world's best-selling champagne, paid off.
In Britain, sales fell for the third year in a row, due in part to uncertainty sparked by the country's planned departure from the European Union. Volumes dropped 3.6% to 26.8 million bottles for total revenue of €406 million. Volumes had already fallen 11% in 2017 and 9% in 2016.
CIVC said champagne was feeling strong competition from Italian prosecco, which is three to four times cheaper.
Sales to the United States increased 2.7% to 23.7 million bottles for revenue of €577 million.
Sales to Japan were up 5.5% to 13.6 million bottles, while sales to Hong Kong and China - each accounting for more than 2 million bottles - were up 12 and 10.1% respectively.
The biggest sales increase was seen in South Africa, where volume was up more than 38% to 1.1 million bottles.