Recession has cheapened Champagne

By: Chris Mercer - 21 July 2010 15:29

Rome may not have been built in a day, but it was knocked down in one - as Champagne producers are discovering in 2010.

Laurent-Perrier has brought a little cheer to northern France's most famous wine region today (21 July) by reporting a 17% jump in first quarter sales.

However, the group reluctantly admitted that many consumers are still opting for cheaper brands within its range: Volume growth in Q1 massively outpaced value sales.

This will not come as a surprise to the Champagnois, but it may cause a little concern.

The global economic downturn has washed away several years of steady price rises in Champagne's key export markets and the industry, although rebounding from the lows of last year, is finding these gains difficult to win back.

Rome never regained its former glory. Champagne will probably fare better, but it may take a while.