FRANCE: Vranken-Pommery Monopole sees drop in FY sales

By James Wilmore | 29 January 2013

The group said it expects to stay in profit this year

Vranken-Pommery Monopole has reported a 4% drop in full-year sales, but seen a strong performance in its export Champagne markets including Japan and the US.

The Reims-based Champagne house and rosé wine producer said that sales fell to EUR326.1m (US$437.8m) in the year to 31 December. Champagne sales fell by 4.7% to EUR268.5m in the same period, the company said late last week.

The performace is an improvement on 2011 when sales dipped by 6.8%.

Last year, sales of it wine brands Côtes de Provence and Gris de Gris were flat at EUR57.6m.

The company said that in a sector "characterised by a very aggressive competitive market in the cheapest price segment", it had "maintained its commercial policy that focuses on supporting and developing its brand portfolio internationally".

The group noted that its Champagne export business performed particularly well in Japan and the US, but did not disclose figures.

Looking ahead, the company said that it expects to "maintain profitability" due to investment in communications and the positive development of the price mix for both Champagnes and rosé wines.

Expert analysis

Global market review of Champagne – forecasts to 2016

Some of the issues and challenges addressed in the previous edition of just-drinks' Champagne report continue to influence a category struggling to grow. Recovery from economic downturn and tumbling sales was evidenced in 2010 and part way through 2011, only to be replaced with a further slow down at the end of that year and continuing into 2012. This has been more prevalent in the western European countries. Elsewhere there has been better sales performance, noteably in the US and Japan, significantly in Australia and not forgetting the burgeoning economies of Asia and Greater China. However, even these new markets can only go part way to offset the situation in the more mature markets, to such an extent that total Champagne shipments are expected to rise only slightly during 2012. According to the report, pronounced growth is unlikely until 2015.|

Sectors: Company results, Wine

Companies: Vranken-Pommery Monopole