Champagne in danger of self-destructing, warns expert

Written by Claire Hu

Tuesday, 05 January 2010

Champagne could lose its status as an aspirational drink through "dangerous" price promotions in supermarkets, according to a leading business expert from the region.

Dr Stephen Charters, chairman of Champagne management teaching at Reims Management School, said some brands could be bought cheaper in the UK and even Australia than from the cellar door.

This short-term strategy for raising revenue in response to the worldwide drop in sales threatens the long-term image of Champagne, he warned.

"Unfortunately, marketing Champagne is too often focused on price, which is dangerous as it may send out the wrong signals about Champagne's quality and reputation", said Charters. "It reduces the exclusive nature of Champagne, and threatens its long-term position as an aspirational drink - the best used to provide the best form of celebration.

"Rather than selling cheap they need to develop new marketing methods which are based on long-term supportive methods for the products and develop their existing image: for example, wine tourism to the Champagne region; long-term niche marketing; targeting lesser-known countries or specific market segments; redoubling the effort to show the quality and authenticity of the product, particularly in the face of challenges from newer styles of sparkling wines."

He predicted sales and exports would remain flat for the moment. Worldwide sales tumbled in 2009, dropping by over 42% in the first six months of the year. For the nine months to September 30, 2009, shipments were down 19.8% on the same period in the previous year.

The biggest reduction in sales were in the US and Japan.

Jennifer Fluteau said:

Couldn't agree more! This is exactly what we're faced with when we try to explain to people that we're not in the business of selling a price, but a fine, hand crafted, lovingly produced champagne. Would you sell your grandmother for a few euros just because you need cash??? It's such a shame that some "actors" (or shall we say "dealers") in the champagne market are mainly speculators. I just wonder what will happen 10-15 years from now when all those "new" vines in champagne have been planted.....beware of overproduction and mistakes made in other markets!!!
Jennifer Fluteau,
Champagne Fluteau

report abuse

vote down

vote up

January 07, 2010
Votes: -1

John West said:

\n This e-mail address is being protected from spambots, you need JavaScript enabled to view it ">	In a focus group a few years ago, I watched as the researcher asked the panel to rank champagne brands by quality by placing photos in order on a table. The group ran out of space on the table by the time they got to the (heavily discounted) then No. 2 brand,and deliberately dropped that photo off the edge, to their general amus***nt.
	report abuse vote down vote up