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.

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

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