UK champagne shipments fall 14% in value in 2016

Champagne shipments to the UK in 2016 were down 8.68% in volume, falling from 34.2m to 31.2m bottles and 14.03% in value, dropping from €512.2m to €440.4m, the detailed figures just released by the Comité Champagne reveal. This was the largest percentage drop in value among all the top ten export markets, only five of which showed any volume growth in 2016, with shipments to the USA rising the most, up 6.33%, although the value of the 21.8m bottles shipped to the USA only rose by 4.9%.

The fairly dramatic fall in the value of UK shipments, Continue reading “UK champagne shipments fall 14% in value in 2016”

Champagne market slows in 2016

Champagne shipments in 2016 were down 2.1% at 306,036,369 bottles, a little over 6.5m bottles below the level reached in 2015, according to the statistics released by the CIVC. This is just above the 304,994,000 bottles shipped in 2013, the poorest recent year, although immediately after the financial market meltdown only 293,331,000 bottles were shipped in 2009.

The French market declined further, Continue reading “Champagne market slows in 2016”

2016 Champagne harvest yield set to produce around 315m bottles

The yield for the 2016 harvest, currently expected to begin around mid-September, has been set at 9,700 kilos per hectare with a further 1,100kgs/ha to be taken from the reserve at the start of February next year. This level of yield will potentially produce around 283m bottles with a further 32m bottles coming from the reserve next February, if appropriate, making a total production of 315m bottles. This compares with worldwide champagne shipments of 312.5m in 2015 and the news that the MAT total for shipments in the 12 months to the end of June 2016 were up just over 2%.

The harvest is expected to start in mid-September
The harvest is expected to start in mid-September

However, after a very difficult growing season in Champagne so far this year with frosts, disease and uneven flowering all reducing the actual potential yield from the 2016 harvest, it seems likely Continue reading “2016 Champagne harvest yield set to produce around 315m bottles”

Champenois set yield for 2015 harvest

With the 2015 harvest in Champagne expected to start generally around 10 September, the CIVC (Comité interprofessionnel du vin de Champagne) set the maximum allowed yield at 10,500 kilos per hectare at its meeting in mid-July, with a further 500kgs/ha to be released from the ‘reserve’. This is the same level of yield as was set for the 2014 harvest and is in line with expectations that champagne shipments worldwide will be around 307m bottles in 2015, close to the level reached in 2014 when 307.12m bottles were shipped.

With the current level of vineyard in active production of just under 33,700 hectares a yield of 10,500kgs/ha would produce about 306.5m bottles and the additional 500kgs/ha could potentially add just under 15m further bottles.

UK champagne shipments up by 6.1% in 2014

Britain continues to lead the way in champagne consumption with imports rising by 6.1% to 32,675,232 bottles in 2014, that’s more the next two markets, the USA and Germany, can muster together. Value was up slightly more by 6.7% to just over 477m€ giving an average price per bottle of 14.6€. The British consume more than seven times the combined volume of champagne imported by the much vaunted BRIC countries with consumption flat in China and Russia, up 10.2% in Brazil and down 16.2% in India. Britain takes 22.4% of all champagne exports.

The five leading export brands account for 38.45% of the market in Britain or 12,562,721 bottles. Compare that with the USA where the top five brands between them take a massive 70.25% of the whole market. Some 31,470, 047 bottles or 96.3% are non-vintage styles, with only 1,205,185 bottles of vintage champagne imported into Britain in 2014.

Champagne sets 2014 yield to meet predicted demand

The basic yield in for the 2014 harvest was set at 10,500kilos per hectare by Champagne’s governing body the Comité interprofessionel du vin de Champagne (CIVC) which regulates champagne production at its meeting just before the August holiday break. This level of yield will to produce around 305.7m bottles of champagne. This is the volume of champagne the CIVC committee charged with analysing the market believes will be needed given the relatively high levels of stocks held by producers that amounts to nearly four years supply.

It is not a particularly optimistic assessment of the current situation which is partly based on the shipment figures for the first half of 2014 that show a very slight rise of 1.4% on the first half of 2013 to 110m bottles. But of course the majority of champagne sales are made in the second half of the year — particularly the last quarter — and predicting the level of demand in the run-up to the year end is always problematic. The MAT figure for the 12 months to the end of June 2014 helps a little, that is up 0.3% to 306.5m bottles on the same 12 months to the end of June 2013. But it is a still a difficult market to read.

The calculation about what a certain yield will produce is easy enough, you just need to know the current area of productive vineyard and that is 33,600 hectares. Because predicting consumption accurately is so difficult, the Champenois have devised a system by which they can make later adjustments to allow for fluctuations in demand by releasing more of the wine held in the Réserve to boost production.

This is quite a complicated system to explain. For 2014, in fact 400kgs/ha of the 10,500kgs/ha allowed will come out of the current reserves held and not the 2014 harvest. And if shipments look like rising above 307m bottles, the CIVC will raise this to 500kgs/ha. In addition vineyard owners can also put up to 3,100 kg/ha into their own reserve stocks, providing that reserve does not exceed the limit prescribed by regulations.

UK 2013 champagne shipments drop by 5.13%

Champagne shipments were down just 1.53% in 2013 to 303,870,438 bottles, according to figures just released by the CIVC, Champagne’s governing body. The French domestic market was down by 2.43% to 167,093,159 bottles but total export shipments only fell 0.42% to 136,776,979 bottles.  Shipments to the UK market were down by 5.13% to 30,786,727 bottles, dropping from 32,445,352 in 2012, the lowest level they have been at, bar 2009 when the financial slump hit sales, since 2001.

The UK is still by far the most significant export market in terms of volume, shipments to the number two market the  USA which rose by just 0.93% are still over 12.9m bottles lower. In general, as expected, it is the mature European markets that fared worse with Germany and Spain down 1.57 and 1.92% respectively and Italy falling back further again – by 14.18% to 5,359,536 bottles, after a drop of over 18% in 2012. Belgium bucks the European trend with a 14.15% rise to 9,525,304 bottles.

Outside Europe the market for champagne in Japan and Australia remains buoyant with shipments to the latter, the sixth most important export market now, up 11.4% following on from 11.2% growth in 2012 and a 31.9% spurt in 2011. The Japanese market also continued to grow with shipments up 6.75% to 9,674,446 bottles.

In terms of value because of the higher average bottle price — consumers there favour more expensive rosé champagne and prestige cuvées — Japan may well have overtaken Germany as the third most important export market in terms of value. Those detailed figures are not available yet but with average shipment prices at €19.19 in Japan versus Germany’s €14.83 in 2012, the gap in terms of Euros between the two was less than €14m though over 3.5m more bottles went to Germany.

BEPremierEditionBottleShotattheLaunchYou can see why the Champenois like the Japanese market and HerveatTheLaunchthat’s the reason Perrier-Jouët has just chosen to launch its new 2007 Belle Époque Edition Première there (a wine I tasted with winemaker Hervé Deschamps last Thursday in London of which more soon) in time for the Spring blossom. A few years ago Veuve Clicquot launched its non-vintage rosé in the Japanese market before releasing it anywhere else and the PJ has hint of pink from macerated Pinot Noir.

The feeling that the biggest houses are concentrating their efforts on the emerging markets like the BRIC countries and that this is where the growth is all going to come from in the short term took a blow. Shipments to China were down 18.35%, exports to Russia only up 4%, Brazil fell 0.46% and while India was up 5.36% shipments there still only reached a paltry 367,020 bottles.

When I spoke to Moët’s CEO Stéphane Baschiera on the telephone last month he mentioned that Mexico was a ‘priority market’ for the largest champagne brand. Perhaps therefore unsurprisingly the highest percentage growth achieved by any top 30 countries came in Mexico where shipments rose 31.18% to 1,137,845 bottles. That’s more than India and Brazil put together, though sitting together in 15th and 16th position in the top 30, China and Russia are still slightly larger at 1.63m and 1.54m bottles respectively. Shipments to the UK are however still more than five times larger than all five of these markets put together.