The all powerful Champagne Vintners' Committee, CIVC which controls the production and indirectly the prices announced on Thursday that sales within France were also lower by 3.6%. The sales of the French Fizz have fallen for the first time this Millennium.
Exports to EU consumers outside France were down 6.5 percent in volume in 2008 with non-EU exports down 6.2 percent. Demand in emerging economies like Russia and China appeared to have offset the decrease in demand in mature markets like the US and UK.
Champagne shipments to the UK were down over 12% in the first 10 months of 2008 while exports to all European countries were down 18.6% for the same period, according to a report in Decanter. Sales in the UK off-trade were the worst in 15 years, according to ACNielsen.
However, due to record prices in 2008, the sales value would be close to the 2007. Champagne exports were worth €2.36 billion in 2007, a 10.4 percent surge year-on-year.
Daniel Lorson, a spokesman for the CIVC predicted a rough '09 for the industry but sought to look at the bright side. "We have all the assets to resist the crisis over the long term," Lorson said. "The boat is solid, the sails are solid, and the crew is solid," adding "We can weather this storm."
Ghislain de Montgolfier, co-president of CIVC, reportedly admitted that, 'the fall is a good thing. Our purpose was to decrease sales by 2% at the start of 2008. Hopefully grape growers can stop increasing their prices and Champagne pricing will be more stable,' he added.
Although the figures are not available for India, the industry figures that there has been a 20% drop in the estimated 25,000 case market, part of the fall being attributed to suspension in the Maharashtra market due to the excise impasse last year that lasted over 3 months, followed by the Mumbai blasts and the recession which hit the industry in general and higher prices wines especially |