Brexit and protests hit champagne sales

Brexit and France’s ‘yellow vest’ protest movement together reduced the number of bottles of French champagne sold in 2016 to its lowest in a year since 2004, according to business group figures.

The Comité Interprofessionnel du Vin de Champagne (CIVC) said the number of bottles sold fell 1.8%, to 302m, in 2018.

However, total revenue edged up 0.3%, to a record €4.9bn, 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, said.

French and UK sales together account for about 60% of total sales by volume.

French sales fell 4.2%, to 147m bottles, with more bottles sold abroad than in France for the first time in 100 years.

That was because a slow French economy, and the yellow vest anti-government protest movement, weighed on sales.

Mr Barillere said the protests had hit Paris tourist arrivals and French household confidence, hurting demand.

Total export sales edged up 0.6%, to nearly 155m bottles, but total export revenue rose 1.8%, to €2.9bn, 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 EU.

UK volumes dropped 3.6%, to 26.8m bottles, for total revenue of €406m. 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 US increased 2.7%, to 23.7m bottles, for revenue of €577m.

Sales to Japan were up 5.5%, to 13.6m bottles, while sales to Hong Kong and China — each accounting for more than two 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 1.1m bottles.

- Reuters