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Champagne and Sparkling Wine - UK - March 2008

ISSUES IN THE MARKET
Main report themes
Definitions
INSIGHTS AND OPPORTUNITIES
Encouraging consumers to trade up
Boxing memories
Greater cocktail opportunities for sparkling wine
FAST FORWARD TRENDS
 TREND 1: LEARNING THROUGH PLAY
What's it sbout?
What we've seen
Implications
 TREND 2: LOCAL KNOWLEDGE
What's it about?
What we've seen
Implications
MARKET IN BRIEF
Double-digit growth for sparkling wine
Big brands accrue market share and invest in packaging
Rosé blooms for Champagne and sparkling wines
Promoting varieties and own-label could boost trade
Rapid growth will continue for sparkling wines
INTERNAL MARKET ENVIRONMENT
Key points
Shift towards home entertaining fuels NPD in Champagne
Super-rich boost on-trade value
A more welcoming and adventurous British palate
Limited by volume, Champagne producers add value
Festive sales continue to dominate
English sparkling wine: the new Champagne
Discounting saviour or threat?
BROADER MARKET ENVIRONMENT
Key points
Controversial moves to extend Champagne appellation
Grande Marques tune into ‘eco’ concerns
ABC1 growth favours target consumer groups
Figure 1: UK population changes in socio-economic status, 2002-07 and 2007-12
Ageing population: opportunity and threat
Figure 2: UK population changes by age group, 2002-07 and 2007-12
Other drivers
COMPETITIVE CONTEXT
Key points
Quality challenges prestige
Cocktails v fizz
Sparkling competes with still
Figure 3: Comparison of UK value sales of all Champagne/sparkling and still wine, 2002-07
Non-alcohol options step up their game
International markets for Champagne
STRENGTHS AND WEAKNESSES
 CHAMPAGNE
Strengths
Weaknesses
 SPARKLING WINE
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Premiumisation boosts top-tier releases
Value added through gift-led opportunities
Rosé extends year-round appeal
Low dosage: the new rosé?
Young party drinkers targeted with single-servings
What's hotting up elsewhere?
MARKET SIZE AND FORECAST
Key points
Champagne and sparkling wine: vibrant categories
Added value lifts the volume-limited Champagne market
Figure 4: UK volume and value sales of Champagne, 2002-07
Figure 5: Champagne percentage of change year-on-year in volume and value, 2003-07
Sparkling wine sales strong but could do better
Figure 6: UK volume and value sales of sparkling wine, 2002-07
Figure 7: Sparkling wine percentage of change year-on-year in volume and value, 2003-07
The future
 FORECAST
Real value of champagne to go down
Cheaper champagne will hit bottom line
Figure 8: UK volume and value sales of champagne, 2007-12
Real value of sparkling wine also on the wane
Figure 9: UK volume and value sales of sparkling wine, 2007-12
Factors used in the forecast
SEGMENT PERFORMANCE
Key points
Sparkling wine boosts its volume and value share
Figure 10: UK retail sales of Champagne and sparkling wine, by sector, 2004-07
 CHAMPAGNE
By style
Figure 11: UK volume sales of Champagne, by style, 2003-07
Brut force keeps sub-category ahead
Unstoppable rosé
Are you sweet enough?
Cuvée or non-cuvée
Vintage on the march
Figure 12: UK off- and on-trade- vintage and non-vintage % volume sales of Champagne, 2003-07
By packaging size
Figure 13: UK volume sales of Champagne, by packaging size, 2003-07
 SPARKLING WINE
Putting the value back into sparkling
Sparkling stakes its claim in the Christmas market
A rosé future for pink sales
Cava comes out of the cellar
MARKET SHARE
Key points
 BRAND SHARES – CHAMPAGNE
Figure 14: Estimated brand shares in the total Champagne market, by value, 2003-07
Moët and Clicquot are adding the most value
Lanson falls a place in the off-trade
Figure 15: Estimated brand shares in the total Champagne market, by value, by on- and off-trade, 2007
 BRAND SHARES – SPARKLING WINE
Figure 16: Estimated brand shares in the total sparkling wine market, by value, 2003-07
Redistribution dominates sparkling wine share
COMPANIES AND PRODUCTS
Figure 17: Map of key manufacturers and brands in the Champagne and sparkling wine market, 2008
 CHAMPAGNE
Moët Hennessy
Pernod Ricard
Lanson
Laurent-Perrier
Mentzendorff
Rémy Cointreau
Vranken-Pommery Monopole
Independent Champagne houses
Pol Roger
Taittinger
Roederer
 CHAMPAGNE CO-OP-OWNED BRANDS
Nicolas Feuillatte
Jacquart
 SPARKLING WINE
Cordoníu
Freixenet
Martini Asti
Hardys Crest
 SPARKLING WINES BY ORIGIN
Continental Europe
English sparkling wines
New World
BRAND ELEMENTS
 BRAND MAP
Figure 18: Attitudes and usage of Champagne and Sparkling wine brands, February 2008
 VEUVE CLIQUOT
What the consumer thinks
Figure 19: Attitudes towards the Veuve Cliquot brand, February 2008
 BOLLINGER
What the consumer thinks
Figure 20: Attitudes towards the Bollinger brand, February 2008
 MOëT AND CHANDON
What the consumer thinks
Figure 21: Attitudes towards the Moët and Chandon brand, February 2008
 TAITTINGER
What the consumer thinks
Figure 22: Attitudes towards the Taittinger brand, February 2008
 LANSON
What the consumer thinks
Figure 23: Attitudes towards the Lanson brand, February 2008
 JACOB’S CREEK
What the consumer thinks
Figure 24: Attitudes towards the Jacob’s Creek brand, February 2008
 FREIXENET
What the consumer thinks
Figure 25: Attitudes towards the Freixenet brand, February 2008
 HARDY’S
What the consumer thinks
Figure 26: Attitudes towards the Hardy’s brand, February 2008
 ASTI SPUMANTE
What the consumer thinks
Figure 27: Attitudes towards the Martini Asti Spumante brand, February 2008
 LINDAUER
What the consumer thinks
Figure 28: Attitudes towards the Lindauer brand, February 2008
 BRAND QUALITIES OF CHAMPAGNE AND SPARKLING WINE BRANDS
Consumers aspire to the exclusive Bollinger, but love the reliability of Jacob’s Creek everyday
Figure 29: Word associations with various Champagne and sparkling wine brands, February 2008
 EXPERIENCE OF CHAMPAGNE AND SPARKLING WINE BRANDS
Sparkling is drunk more often, but the big two Champagnes are as well known as any
Figure 30: Consumer usage of various Champagne and sparkling wine brands, February 2008
 BRAND INTENTIONS FOR CHAMPAGNE AND SPARKLING WINE
Consideration is fairly similar across all brands
Figure 31: Consideration of various Champagne and Sparkling wine brands, February 2008
 BRAND MOMENTUM FOR CHAMPAGNE AND SPARKLING WINE
Jacob’s Creek is gaining most ground, Asti losing most.
Figure 32: Momentum of various Champagne and sparkling wine brands, February 2008
 BRAND MOTIVATION FOR CHAMPAGNE AND SPARKLING WINE
Sparkling wines lead on rosé.
Figure 33: motivation of various Champagne and Sparkling wine brands, February 2008
 BRAND SATISFACTION FOR CHAMPAGNE AND SPARKLING WINE BRANDS
Satisfaction uniformly higher amongst Champagne brands
Figure 34: Satisfaction of various Champagne and sparkling wine brands, February 2008
 BRAND COMMITMENT TO CHAMPAGNE AND SPARKLING WINE BRANDS
Veuve Cliquot has high recommendation, but loyalty is challenged by price
Figure 35: Commitment to various Champagne and Sparkling wine brands, February 2008
 ROUND UP
BRAND COMMUNICATION AND PROMOTION
Key points
Above-the-line spend falls for Champagne
Figure 36: Main monitored media advertising spend on Champagne and still/sparkiling wine, 2005-07
Champagne
Figure 37: Champagne adspend:sales ratio, 2002-07
Moët Hennessy sprinkles its gold dust
Figure 38: Top advertisers on Champagne, 2005-07
Figure 39: Adspend by top ten Champagne brands, 2005-07
Lanson re-stakes its claim
Supermarket spend rises
Seasonal spikes mark spending
Figure 40: Seasonal expenditure on Champagne, 2005-07
Sparkling wine
Figure 41: Main monitored media advertising expenditure on sparkling wine, by brand, 2005-07
CHANNELS TO MARKET
Key points
 CHAMPAGNE
Figure 42: Off- and on-trade UK retail sales of Champagne, by volume, 2003-07
On-trade value takes flight
Champagne bars bolster value returns
Recession forecasts have yet to hit om-trade
Retail volume under threat from price increases?
Niche but growing independent retailers add value
 SPARKLING WINE
Figure 43: UK retail sales of sparkling wine, by volume, by type of outlet, 2003-07
Sparkling wine flounders in the on-trade
Opportunity offered by single-serve or by-the-glass?
Improving the on-trade offer
Sparkling off-trade sales
THE CONSUMER – CHAMPAGNE CONSUMPTION
Key points
 PENETRATION
Consumption buoyant despite recent economic doldrums
Figure 44: Consumption of Champagne in the last 12 months, 2003-07
Figure 45: Consumer profile of users of Champagne in the last 12 months, 2007
Champagne is a girl’s best friend
Tackling low consumption amongst the elderly
ABs indulge frequently
Married couples and fledgling families enjoy a splash
THE CONSUMER – CHAMPAGNE AND SPARKLING WINE REPERTOIRES
Key points
Figure 46: Type of Champagne or sparkling wine bought in the last year, November 2007
Branded vs own-label Champagne: consumer age and region drive variation
Key consumers across sub-categories
Rosé: a love story
Sparkling strong but not exploiting full potential
Elderly, single and less affluent consumers shun Champagne
Figure 47: Repertoire of Champagne and sparkling wine bought in the past year
Sparkling wine is closing in on Champagne but lacks dynamism
Figure 48: Repertoire of Champagne bought in the past year
Figure 49: Repertoire of sparkling wine bought in the past year
Champagne and marriage: go together like a horse and carriage
Inspiring experimentation among younger drinkers
THE CONSUMER – ATTITUDES AND HABITS
Key points
Figure 50: Consumer Champagne and sparkling wine habits and attitudes, November 2007
Encourage informal usage
Waitrose shoppers lead Champagne gift occasions
Own-label growth hampered by lack of understanding
Purchasing motivations
Figure 51: Champagne/sparkling wine consumer purchasing motivations, November 2007
Brands appeal to the young and singles
CONSUMER TYPOLOGIES
Key points
Champagne Charlies (8%)
Special Occasion Champagne Drinkers (28%)
Sparkling Wine Advocates (10%)
Indifferents (20%)
Champagne Charlies spread patronage
Figure 52: Repertoire drinking of attitudinal groups
APPENDIX
Advertising data
Abbreviations
APPENDIX: THE CONSUMER – CHAMPAGNE CONSUMPTION
Figure 53: Consumption of Champagne in the last 12 months, by demographics, 2007
Figure 54: Frequency of Champagne drinking in the last 12 months, by demographics, 2007
Figure 55: Five-year trends for frequency of drinking Champagne, 2003-07
APPENDIX: THE CONSUMER – CHAMPAGNE AND SPARKLING WINE REPERTOIRES
Figure 56: Champagne drinkers by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
Figure 57: Sparkling wine drinkers by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
Figure 58: Non buyers by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
Figure 59: Demographics of Champagne repertoire drinkers
APPENDIX: THE CONSUMER – ATTITUDES AND HABITS
Figure 60: Consumer attitudes towards Champagnes and sparkling wine by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
Figure 61: Consumer attitudes towards Champagnes and sparkling wine by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
Purchasing Motivations
Figure 62: What consumers consider when buying Champagne or sparkling wine by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
Figure 63: What consumers consider when buying Champagne or sparkling wine by, gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, Working status, household income, region, ACORN category, technology users, Internet usage, commercial TV viewing, TV received, supermarket used and household size, November 2007
APPENDIX: CONSUMER TYPOLOGIES
Figure 64: Cluster groups by attitudinal statements
Figure 65: Demographics of attitudinal (cluster) groups

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