Table of Contents
Issues in the Market
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- Definition
- Abbreviations
Future Opportunities
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- Making a virtue of slow production
- Capitalising on home advantage
- Targeting the Baby Boomers
Market in Brief
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- Recession causes slowdown in Champagne market…
- … but sparkling wine is coming of age
- What will the future bring?
Internal Market Environment
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- Key points
- Societal attitudes towards alcohol changing
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- Figure 1: Changing shares of main categories of UK spend, at current prices, 1998-2008
- Figure 2: Drinking trends, 2005-09
- In-home drinking is increasingly the key revenue stream
- Premiumisation and the effects of the recession
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- Figure 3: Trends in agreement with statements on luxury/status, 2005-09
- Champagne under pressure from sparkling competitors
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- Figure 4: Champagne main export markets in 2008
Broader Market Environment
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- Key points
- Rising duty and strong euro undermine margins
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- Figure 5: Trends in excise duty rates for Champagne/sparkling wine, April 2000-09
- An ageing population
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- Figure 6: Structure of the UK 18+ population, by age, 2004-14
- An upwardly mobile population
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- Figure 7: Structure of the UK population, by socio-economic group, 2004-14
- Still in the grip of a recession
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- Figure 8: Forecast of trends in PDI and consumer expenditure at real (2004) prices, 2004-14
Competitive Context
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- Key points
- The battle for market share intensifies
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- Figure 9: Alcoholic drink types drunk in past year, 2005-09
- Rising importance of gender politics
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- Figure 10: Percentage consumption of drinks on a ‘big night out’ compared to a ‘big night in’, July 2009
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Evolution in formats
- Eco-friendly bubbly
- Playing around with flavours
- A direct dialogue with the consumer
- Champagne as healthy?
Market Size and Forecast
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- Key points
- Champagne’s fortunes tied to economic recovery
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- Figure 11: Forecast of volume and value retail sales of the total Champagne market, in current and real prices, 2004-14
- Sparkling wine continues its ascent
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- Figure 12: Forecast of volume and value retail sales of the total sparkline wine market, in current and real prices, 2004-14
- Factors used in the forecast
Segment Performance
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- Key points
- 7 in 10 bottles sold are sparkling wine
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- Figure 13: UK: volume and value retail sales of Champagne and sparkling wine, 2005-09
- Declining Champagne sales driven by poor performance in on-trade
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- Figure 14: UK: Volume and value retail sales of Champagne in the off-trade, 2004-09
- Figure 15: UK: Volume and value retail sales of Champagne in the on-trade, 2004-09
- Growth of sparkling wine led by on-trade
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- Figure 16: UK: Volume and value retail sales of sparkling wine in the off-trade, 2004-09
- Figure 17: UK: Volume and value retail sales of sparkling wine in the on-trade, 2004-09
Market Share
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- Key points
- Major Champagne brands under pressure
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- Figure 18: Trends for market share in value for top-selling Champagne brands in the off-trade, 2008-09
- Own-label is building momentum
- Retailers target smaller, grower brands
- Premium sparkling wine brands are leading the market
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- Figure 19: Trends for market share in value for top-selling sparkling wine brands, in the off-trade, 2008-09
Companies and Products
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- Key points
- Boizel Chanoine
- Constellation
- Cordoníu
- Freixenet
- Laurent-Perrier
- Mentzendorff
- Moët Hennessy
- Pernod Ricard
- Rémy Cointreau
- Vranken-Pommery Monopole
Brand Elements
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- Key points
- Brand map
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- Figure 20: Attitudes towards and usage of Champagne and sparkling wine brands, January 2010
- Brand qualities of Champagne and sparkling wine brands
- Champagnes top the style stakes
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- Figure 21: Personalities of various Champagne and sparkling wine brands, January 2010
- Experience of Champagne and sparkling wine brands
- Jacob’s Creek most popular, Bollinger has aspirational image
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- Figure 22: Consumer usage of various Champagne and sparkling wine brands, January 2010
- Brand consideration for Champagne and sparkling wine brands
- Bollinger most considered, sparkling wines least so
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- Figure 23: Consideration of various Champagne and sparkling wine brands, January 2010
- Brand satisfaction for Champagne and sparkling wine brands
- Champagnes mean satisfaction
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- Figure 24: Satisfaction with various Champagne and sparkling wine brands, January 2010
- Brand commitment to Champagne and sparkling wine brands
- Occasions all round
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- Figure 25: Commitment to various Champagne and sparkling wine brands, January 2010
- Brand intentions for Champagne and sparkling wine brands
- Jacob’s Creek the safe standby
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- Figure 26: Future usage intentions for various Champagne and sparkling wine brands, January 2010
- Brand recommendation for Champagne and sparkling wine brands
- Accessible or aspirational – as long as it’s good quality
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- Figure 27: Recommendation of various Champagne and sparkling wine brands, January 2010
- Bollinger
- What the consumer thinks
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- Figure 28: Attitudes towards the Bollinger brand, January 2010
- Freixenet
- What the consumer thinks
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- Figure 29: Attitudes towards the Freixenet brand, January 2010
- Lanson
- What the consumer thinks
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- Figure 30: Attitudes towards the Lanson brand, January 2010
- Jacob’s Creek
- What the consumer thinks
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- Figure 31: Attitudes towards the Jacob’s Creek brand, January 2010
- Moët et Chandon
- What the consumer thinks
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- Figure 32: Attitudes towards the Moët et Chandon brand, January 2010
Brand Communication and Promotion
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- Key points
- Advertisers primarily relying on below-the-line activity
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- Figure 33: Total above-the-line advertising spend, for Champagne and sparkling wine, 2005-09
- Moët Hennessy is the biggest spender
- Taittinger takes to the skies
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- Figure 34: Above-the-line advertising spend, by top ten Champagne companies, 2007-09
- Freixenet outspends sparkling wine competitors
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- Figure 35: Above-the-line advertising spend, by top ten sparkling wine companies, 2007-09
- Top 20 spending brands
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- Figure 36: Above-the-line brand spend, by top 20 suppliers in the total Champagne and sparkling wine market, 2007-09
Channels to Market
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- Key points
- Champagne increasingly more reliant on off-trade
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- Figure 37: Trends in the proportion of Champagne volume sales in the on- and off-trade, 2004-09
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- Figure 38: Trends in online supermarket discounting for Champagne/sparkling wine, December 2007-November 2009
- Figure 39: Trends in the volume sales distribution of Champagne in the off-trade, 2007-09
- Sparkling wine is growing its share of the on-trade
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- Figure 40: Trends in the proportion of sparkling wine volume sales in the on- and off-trade, 2004-09
Consumer Usage – Champagne
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- Key points
- Less frequent drinking affecting Champagne sales
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- Figure 41: Trends in consumption of drinking Champagne, 2007-09
- Champagne use is peaking too soon
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- Figure 42: Trends in Volume Importance Index (VII)* of Champagne drinkers, by age group, gender and socio-economic group, 2009
- ‘Share-ability’ a major advantage for in-home market
Consumer Usage – Types of Champagne and Sparkling Wine
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- Key points
- Consumption of Champagne and sparkling wine over the past year
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- Figure 43: Consumption of Champagne and sparkling wine in the past 12 months, December 2009
- Own label’s stock is rising
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- Figure 44: Proportion of Champagne drinkers who drink own-label and branded, December 2009
- Cava blazes a trail but English sparkling wine is one to watch
- Sparkling wine has an older profile
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- Figure 45: Trends in index of usage* of Champagne and sparkling wine drinkers, by age group, gender and socio-economic group, December 2009
- Key points
- Still special but there are warning signs
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- Figure 46: % occasions drinkers of Champagne and sparkling wine buy the product for, December 2009
- Sparkling wine is capitalising on burgeoning in-home market
- Men more influenced by status of Champagne
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- Figure 47: Net difference* of occasions men and women buy Champagne and sparkling wine for, December 2009
Attitudes towards Champagne and Sparkling Wine
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- Key points
- Sparkling wine is closing the gap in perception of quality
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- Figure 48: Attitudes of drinkers towards sparkling wine and Champagne, December 2009
- 2.3 million consumers feel that heavy discounting is cheapening the product
- The Champagne brand is more powerful than individual labels
- Over-45s more likely to notice improvements in quality of sparkling wine
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- Figure 49: Attitudes of drinkers towards sparkling wine and Champagne
Appendix – Broader Market Environment
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- Figure 50: UK Consumer confidence index, January 2006-December 2009
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Appendix – Consumer Usage
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- Figure 51: Champagne and sparkling wine bought in the last year, by demographics, December 2009
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- Figure 52: Champagne and sparkling wine bought in the last year, by demographics, December 2009 (continued)
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Appendix – Drinking Occasions: Champagne versus Sparkling Wine
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- Figure 53: Occasions for which consumers bought Champagne, by demographics, December 2009
- Figure 54: Occasions for which consumers bought sparkling wine, by demographics, December 2009
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Appendix – Attitudes towards Champagne and Sparkling Wine
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- Figure 55: Attitudes towards Champagne and sparkling wine, by demographics, December 2009
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