Champagne and Sparkling Wine - UK - March 2008

Table of Contents

• Issues in the Market
• Main report themes
• Definitions
• 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
• 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 ros
• 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
• Moét 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 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
• 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