Champagne and sparkling rises in the on-trade, but prosecco dominates the off, new report shows

By Arabella Mileham

Published: 22 May, 2015

Champagne and sparkling wine sales have grown in the on-trade on the back of a stabilisation of on-trade venues - but prosecco continued to dominate the off-trade, according to the fourth annual Lanson category report.

Champagne and sparkling wine sales have grown in the on-trade on the back of a stabilisation of on-trade venues - but Prosecco continued to dominate the off-trade, according to the fourth annual Lanson category report.

Values sales of sparkling wine rose 83.1% on volumes up 15% to 6.7mL, ahead of Champagne, which saw volumes also up 4.9% and values up 19.5% to around £395.2m.

This compared to flat sales of still wine, down 0.9% by volume and 0.3% by value, as well as falling volumes sales of spirits, down 3.3% and beer, down 1.7%. However increased pricing helped boost value sales up 1.8% and 1.3% respectively.

The positive sales of bubbles reflected a boost to distribution, the report said, on the back of increased opening of larger venues (+11.4%) restaurants (+7.2%) and hotels (+1.3%), which are more likely to serve champagne and sparkling wine. The report also noted wine bar champagne sales had risen 37.5% in value over the last year, which it said demonstrated the rise of champagne for less formal occasions. However smaller traditional drink's-led venues are still showing "sustained declines", it said.

Of the top five international brands in the on-trade market leader Moet & Chandon rose 11.2%, by value with Lanson up 13.8% and Perrier Jouet up 66.7%, albeit of a smaller base. Number two champagne Veuve Clicquot sales were static at 0.9%.

Paul Beavis, managing director of Lanson International

However, it was sparkling - primarily Prosecco - that continued to dominate in the off-trade, with volumes up 25% to 63.7mL, and values increase also up 26%. Sales of Italian sparkling were up 61% to £372.9m, but the report noted a fall off in private label Prosecco, as more brands emerged. Cava sales fell 9.3% to around £148.5m, with Australian sparkling also down. However English sparkling wine also rose 37% to be worth around £8m, and French sparkling wine other than Champagne rose 24.6% to £4.5m.

Champagne sales saw volume declines in the off-trade, of 0.8% to 12.1mL driven by a falling off of retailer own label and lesser-known 'soft' brands, although value rose nearly 1% to £318.4m.

Lanson managing director Paul Beavis said it was a good year for Champagne with volume and value increases across the combined on and off trade channels. "In the on trade, the overall number of outlet closures has stemmed, which is very encouraging news, especially as the growth in openings has been in the more premium sectors of 'platinum and gold' accounts," he said.

He added that Prosecco sales were not eating into Champagne sales, and said there remained a good opportunity to grow Champagne sales in the on trade, not only through increasing champagne distribution into accounts which don't stock champagne, but also driving rate of sale across those that do.

Earlier this week, Harpers revealed that volumes of prosecco were running dangerously low, with suppliers worrying that they would not be able to secure adequate supply.

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