Champagne makers signal return to growth

Remy Cointreau, which makes Piper-Heidsieck champagne, said sales of champagne rose 23 percent to 16.7 million euros ($21.3m) in its fiscal first quarter to June 30. Vranken-Pommery said sales rose 52 percent to 66 million in the quarter.

“Because of the crisis, consumers temporarily switched to cheaper brands. This phenomenon is now receding. We're seeing a move back to the major brands and cuvees de prestige,” Vranken-Pommery Chairman Paul-Francois Vranken said.

Vranken-Pommery said it was optimistic about all of its champagne brands for the rest of the year, adding that the first half had seen “an end to the crisis for champagne”.

Remy Cointreau said it was seeing renewed growth in champagne, particularly in its domestic French market and Europe, against the backdrop of an ongoing uncertain economic environment.

Rival champagne maker Laurent-Perrier posted a 17 percent rise in sales to 36.8 million euros for the quarter to June 30 on Tuesday, boosted by exports to the UK, the US, Germany and Asia.

The performance showed demand was picking up, and customers would continue to turn towards more expensive bottles over the coming quarters, the company said.

Remy Cointreau, which has a market value of around 2.2 billion euros, makes about one-tenth of sales from champagne, whilst the majority of revenue comes from cognac.

The company said overall group sales rose 24 percent to 171 million euros in the fiscal first quarter, including a 43 percent rise in cognac sales to 91 million euros, driven in particular by growing demand in China.

“The good growth by Remy Martin (cognac) continued to benefit from the highly positive dynamics in China and in travel retail, as these two markets recorded the strongest growth. The US and Europe also increased,” the company said.

Overall, there was growth in all regions apart from Japan, Remy Cointreau said. The US had modest growth, while Russia and the UK underpinned growth in Europe.

Print Friendly, PDF & Email
No tags for this post.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *