Jiles's Blog

HOW CAN I MAKE MONEY FROM A PRIVATE CHAMPAGNE BRAND?

Stars everywhere.

You may already know that Dom Perignon, after whom the famous champagne brand was named, was a real person. He was a monk who lived between 1638 and 1715.

Legend has it that he was blind and, possibly as a result of his blindness, he is said to have had an exceptional sense of taste which was one of the skills that enabled him to make great wine. Anyway, one day when he had just tasted a wine that he thought was outstanding, he is said to have shouted out to his fellow monks “Come quickly. I am tasting the stars!”

Stars of a different kind are involved in the champagne business to this day and a look at this month’s news will show you what I mean and towards the end of the bulletin we’ll discuss some of the things you will need to make your champagne brand a success.

Lady Gaga

Staying on the theme of Dom Perignon, the brand has just announced a collaboration with Lady Gaga to produce a very limited number - just 110 - of special jeroboams (that’s the equivalent of 4 regular bottles).

According to the announcement, this is likely to be just the first of several joint projects between the singer and the iconic champagne brand and although both parties say that they share a passion for creativity and artistic endeavour, I am sure that the potential financial returns associated with the deal will also have been an important factor in the agreement between the parties.

No figures have been disclosed, but I can imagine that the amounts of money involved will be significant.

Roger Daltry

Many of you will have heard about The Who, a famous rock band from quite a few years back and of their iconic lead singer Roger Daltry.

Some years ago, Roger and his fellow band member and guitar legend Pete Townsend, launched a charity called Teen Cancer Trust to raise funds for young people affected by this disease. The charity operates in the UK and in the USA.

One of the ways they raise money for the trust is from sales of a champagne brand they created. I have to admit that I have not tasted this champagne; it has received some excellent scores in several wine competitions but at a price of £95 (130 USD) per bottle one would expect it to be well above average.

I imagine that a generous margin has been built into the sales price in order to raise funds for the trust. There’s absolutely nothing wrong with that, of course, and it does demonstrate how effective a vehicle champagne can be as a means of fund-raising for a charity.

Picture credit: Eminent Life

In the spirit world

On the subject of raising money and stardom, Becle, the company behind Jose Cuervo tequila, has secured a US$150m loan to acquire the remaining stake it doesn’t already hold in Conor McGregor’s Proper No.12 Whiskey.

If you don’t know of Conor McGregor, he’s a well-known, even notorious, mixed martial arts fighter who was recently involved in created a brand of Irish whiskey.

With sums of money as high as $150 million changing hands, and that is only for a portion of the shares in the brand, one can quickly see that there is potentially a great deal of money to be made from wines and spirits brands,

but is this type of money only possible for film stars, singers and other people who are already famous?

The honest answer is probably, Yes.

These eye-watering brand valuations are the exception rather than the rule and it would be a serious mistake to imagine that if you create a brand of champagne, or anything else, the money will just fall from the trees.

Who will you sell to?

The key factor for all these celebrities is that they have a huge following of fans who are ready to buy almost anything that they endorse and, sometimes, to buy them at almost any price.

Therefore, if you are considering creating a private champagne brand, the key learning is that you need to have, or have access to, a substantial database of potential clients and you have to give them a good reason to buy your product at least once – once you have secured a first order, it will be down to the effectiveness of your follow-up marketing to generate repeat orders.

It follows that before you go very far down the road of creating a brand, you need to be crystal clear about who you plan to sell to and what those people are looking for. In fact, knowing as much as possible about your target audience is crucial and should be studied in-depth and at length.

Where are those people?

Equally, the question of distribution is of critical importance.

How are you going to deliver your product to your customers once they have placed an order?

Over the past year, with many bars, restaurants and hotels closed, people have not been able to enjoy a drink at a normal hospitality venue. Consequently, we have seen a huge increase in ordering of wine on-line for enjoyment at home. This is a trend that is unlikely to go away anytime soon and it is forecast to carry on getting bigger and bigger. This is a part of your distribution strategy that you can’t afford to ignore.

Distribution is a topic that is hedged around with laws, regulations and taxes no matter which country you are in and if you can’t manage distribution yourself – which you probably can’t – then you need to find a trustworthy, efficient and affordable distribution partner to do the work for you.

Is that it?

Unfortunately not. There are a multitude of other factors to consider, from a web site to launch parties, to the cost of free bottles, and on to cashflow needs, ordering and sales forecasts… the list is a long one.

But, if you have an entrepreneurial spirit and a passion for what you are doing, all these issues can be a source of enjoyment as well as challenge and seeing your vision gradually take shape and become reality will be immensely satifying.

Your ambitions probably need to be a lot lower than Lady Gaga’s or Conor McGregor’s, ( #or maybe not) but whatever your goals, provided the do your homework and keep your investment in line with your expected sales, there is no reason why your project can’t be successful and great fun.

Who knows?Someday, somewhere down the line, someone may want to pay you a lot of money to buy your brand.

What’s in store for champagne in 2021?

In previous bulletins we have already looked at the shipment figures from champagne in 2020 versus 2019 and no one was surprised that there was an overall decline of 17.9% in volume and of 16.7% in value.

These are pretty dramatic declines over just one year, but in fact it was a better result than some had feared at the start of last year.

Now, one year on from the start of the frenzy that overtook the world last year, there are many signs that consumption and shipments will bounce back gradually in the next few years with sparkling wine forecast to recover more quickly than still wine.

International Wines and Spirits Review reports that sales of sparkling wine, of which champagne is a significant part, are expected to regain 2019 levels by 2023. Longer than most of us would wish, but a positive trend nevertheless.

Meanwhile, hidden amongst all the red ink were a few champagne success stories from last year that deserve a mention:

• The Netherlands up 14.5% in volume and up 4.3% in value in 2020 versus 2019
• Norway up 18.4% in volume and up 14.1% in value
• Ivory Coast up 14.8% in volue and up 24.7 % in value
• Sierra Leone up 301.6% in volume and up 642.4 % in value

Source CIVC

Sure, the percentage gains look amazing becuse the underlying figures are still small, but

' From little acorns mighty oaks do grow'.

Keep calm and Drink Champagne

Finally in this month’s bulletin, a quirky but appealing story from here in Champagne.

You may have heard of Beer Yoga, a trend that is gathering fans all around the world.

Well, not to be left behind, one enterprising couple at Champagne Louis Brochet has launched Champagne Yoga.

Called ‘Tasting in Full Consciousness’ (Dégustation en Pleine Conscience), the session consists of an hour’s yoga session, outside overlooking the vineyards if the weather is fine, to calm the mind and exercise the body; then a tasting of two of Louis Brochet’s finest cuvées – definitely more up my street than beer yoga.

Jiles Halling

1st April 2021

CHAMPAGNE BULLETIN - FEBRUARY 2021

Getting a piece of the action

Well, the news that stood out for me this month was the announcement that Moët Hennessy (MH), the wines and spirits branch of the luxury brand group Louis Vuitton Moët Hennessy (LVMH), has acquired a 50% share in Champagne Armand de Brignac that you probably know as Ace of Spades. This move marks the beginning of a partnership with the rapper Jay-Z who bought the brand back in 2014.

Since then, sales of Ace of Spades have been spectacular, reportedly reaching 500,000 bottles in 2019, and given the retail price point of $300 dollars and sometimes more, the profit is probably equally impressive. Of course, that doesn’t all find its way back to Jay Z but I imagine he's pretty pleased with the results.

That compares to sales of Dom Pérignon that are never officially divulged, but which were probably around 4 million bottles in 2019 before so many bars, restaurants and night clubs were closed or mothballed.

In addition to owning Dom Pérignon, MH also owns Veuve Clicquot, Krug, Moët & Chandon and Ruinart, so they are not exactly short of famous and profitable brands. So, what was it that the two parties felt was mutually beneficial about this new partnership now?

To understand this one needs to look at a few of the background details.

The Armand de Brignac brand was created in 2006 by Champagne Cattier in the village of Chigny-les-Rose at the request of an American company that saw a gap in the market for an ultra-premium brand that boasted not just great quality champagne in the bottle, but also striking packaging to catch the eye.

In the initial years sales grew steadily but not spectacularly until Jay-Z became associated with the brand. Jay-Z had previously been a loyal drinker of Cristal, the prestige brand produced by Champagne Louis Roederer, but the president of Roederer made a remark during an interview with a magazine to the effect that he would prefer it if rappers didn’t drink Cristal because, in his view, such an association damaged the image of the brand.

Understandably Jay-Z was offended by this remark and switched his allegiance to Ace of Spades which he featured prominently in some of his videos and sales took off because of this media exposure amongst the ever-growing number of Jay-Z’s fans.

No doubt it was because he saw even greater potential for Ace of Spades, that Jay-Z decided to buy the brand in 2014, but seeing that the brand is already successful why would Jay-Z want to sell 50%?

The attraction, I believe, lies in MH’s power to distribute the brand, not just in the USA, but to a global audience. Producing a top quality champagne is no easy matter, but it is only one half of the success of any brand – distribution and getting the champagne to the places where people can order and consume it is an equally important part of the recipe for success and MH’s powerful and well established worldwide network of affiliates means that they are perfectly placed to increase sales of Ace of Spades to levels that Jay-Z cannot reach on his own.

On the other hand, MH feels that Ace of Spades has created a new category of champagne drinker that MH cannot reach with the more traditional prestige brands in their portfolio despite their undoubted quality. According to the head of MH, Ace of Spades is modern, uncomplicated and refreshingly attractive and it would seem that MH sees huge potential in that market and they want a part of it.

To support that belief, it’s worth noting that in 2019 global sales of prestige champagnes reached 8.6 million bottles and exceeded 5% of total sales for the first time. The market share in terms of value was much higher, of course. The main market for these brands is the USA where, with 2.3 million bottles imported, they captured 9.1% of the market for volume and 22.4% for value (at import, not retail, prices).

Action that you don’t want

To illustrate the importance of getting the distribution right and the perils of getting it wrong, it has been reported that the owners of the Mod Selection champagne brand, with which the rapper Drake is closely associated, is suing a chain of retail outlets and the distributor of the brand in the USA for allegedly damaging the brand image in various ways including ‘dumping’ the champagne at prices a between $49- $149 when the regular retail price is $300-$400.

The distribution system in the USA is particularly complex, not least because each state can set its own rules and regulations, so understanding and mastering the distribution chain is a crucial factor in the success of any brand and something that anyone considering launching a new brand, should investigate thoroughly.

 

Bounce back?

Just about everyone in or associated with the wine trade is hoping that the easing of COVID restrictions will soon see a return to something like normal sales. To support this view, the Beverage Alcohol Chief at Costco, one of America’s largest retail chains said in an interview (in Shanken Daily) that

At the start of Covid, like many others, we saw consumers trading down on price points, especially in the sparkling wine category. But as we moved through summer, prosecco and Champagne really came back strong as people were willing to spend more to have a great experience at home.

It seems that people can’t wait to start celebrating again once they are given the chance.

Going Green

Now some local news from Champagne.

The Champagne vineyards have a chequered history when it comes to looking after the environment and being ‘green’. In fact, 20 years or so ago, it was a rarity to see anything green at all in the vineyards during the months before the leaves came out. In those days allowing grass to grow between the rows of vines was seen as an eccentric thing to do and most vignerons used herbicide to suppress the grass. The result was a landscape that was poor in biodiversity and brown and uninspiring to look at, in winter at least.

These days things are changing for the better and changing rapidly and an increasing number of vineyards are converting to organic or biodynamic viticulture. The figures for 2019 show that some 20% of all the vineyards in Champagne are already certified as organic or are in the process of conversion.

Yet things are never quite plain sailing because there are serval organisations that grant certification and they are not all treated in the same way.

At national level, the HVE certificate (Haute Valeur Environmentale) has been promoted by the government.

At  regional level there is the VDC certificate (Viticulture Durable en Champagne) which was developed and promoted by the Comité Champagne.

It’s important to note these certificates testify to the fact that environmentally friendly practices are being used, but they do not indicate that the vineyard is necessarily organic.

Be that as it may, since both schemes have the same broad objectives and demand much the same standards to be observed one can entirely understand the disappointment and annoyance of those vignerons who dutifully obtained the VDC certificate promoted by their local organisation only to discover recently that it does not carry with it the same level of recognition and benefits as the national HVE certificate.

This has caused a bit of a rumpus and one gets a sense that this discussion is far from over.

Out and about

Finally, to finish this month’s bulletin on the same topic of what’s going on in the vineyards, I’d like to share a few pictures of Champagne at this time of year.

Whenever I take a walk in the vineyards, which is very often, I am always struck by the variety of things to notice. There is never nothing going on and there is always something to see and pay attention to.

The first picture shows a plot of vines cultivated in a more conventional way which prevents grass from growing between the rows. Herbicide may, or may not, have been used on this plot but you can see that every third row is covered with wood chippings which also inhibit the growth of grass and weeds.

The second picture shows a plot where some rows are grass covered (1 in 3) and some are not (2 in 3)

Picture 3 shows a plot that is entirely enherbé (grass covered)

It’s certainly easy on the eye, but it’s important not to assume that the absence of grass means that the vigneron doesn’t care about the environment and is too lazy to go to the trouble of growing grass and tending it. There are several good reasons why allowing grass to grow too abundantly, or even at all, is just not practical.

Next is a picture of a plot tended by someone who is clearly concerned about the environment and wants to increase the diversity of flora and fauna in the vineyards. He or she has gone to the trouble of installing a number of bird boxes and of planting trees at intervals along the rows. This is not just to look pretty. The birds will help control insects and the blossom on the tress will attract bees for pollination.

Last is a picture that just caught my eye because of the contrasting colour with the bright and clear blue sky above, the sand colour of the huge stones in the wall and below that, the brown and green of the vineyard itself.

 

I hope you enjoyed that short ‘walk’ through the vineyards and I’ll be back again with another bulletin from Champagne in a month’s time.

Meanwhile, if you want to contact me to discuss any of the topics covered this month's bulletin, including creating your own champagne brand, you can do so by email to

This email address is being protected from spambots. You need JavaScript enabled to view it.

Last but not least, if you want to learn more about champagne, check out my online course called My Champagne Expert. You can find out all the details on this link

https://my-man-in-champagne.lpages.co/my-champagne-expert-100

Until next month, all the best from Champagne

 

Jiles

2020 - Some Downs, but plenty of Ups too

In the current circumstances I suppose that worrying about the fall in the number of bottles of champagne shipped during the year, is very much a ‘1st world-problem’ compared to the far greater challenges faced by many people around the world. However this bulletin is all about champagne (the wine) and Champagne (the region) so let’s delve deeper into this month’s news and I’m pleased to say that there is a lot to tell you and that it’s far from being all bad.

Since last March there have been all sorts of ultra-pessimistic estimates of the devastating impact lockdowns and other restrictions on normal life, might have on champagne. Well, the news hasn’t been great, it’s true, but as the year-end figures came in, they turned out to be quite a bit better that some feared.

The full year figure for 2020 was 244.8 million bottles shipped.

True, that’s a drop of 18% versus 2019 (297.5 million) but it’s a lot better than the worst forecasts that suggested the figure might fall as low as 200 million.

What’s more interesting is that the French market fell by a full 20% (a survey not so long ago suggested that the French are amongst the most pessimistic nations in the world), whilst the rest of the world recorded a fall of ‘just’ 16%.

The results for the rest of the world are a  mixed bag with, on the one hand, some of the major markets such as the USA, the UK and Japan registering decreases of 20% ( or more in the case of Japan), and on the other hand, some markets seeing much less significant declines: Belgium -5% and Switzerland -9% for example. In Australia shipments actually increased by 14%. versus 2019.

 Go you Aussis!

Not surprisingly, with restaurants, bars, hotels and hospitality venues (on-premise) almost totally closed, the bottles that were shipped were destined for the off-premise market and several countries saw a surge of sales for home consumption.

In the UK, for example, off-premise sales were actually up 3% compared to 2019. A large percentage much of these off-premise sales were in supermarkets where attractive discounts clearly boosted sales, but it wasn’t only champagnes in the lower price bracket that enjoyed strong sales; higher priced, prestige brands also had a good year in the off-premise with the result that the total value of champagne retail sales increased by a full 12% in the year to end 26th December 2020.

The chairman of the U.K.’s Champagne Agents Association even went as far as to describe the results as ‘ astonishing’.

In the USA in particular, it’s DtC, Direct To Consumer, sales that have saved the day and have shown a 27% increase on the previous year in terms of the number of bottles sold, although it must be said that the average value per bottle has fallen. However these figures relate to domestic wine rather than champagne.

Nevertheless, all this buoyancy in the off-premise didn’t compensate for the near total loss of sales in the on-premise market, but it does show, I believe, the underlying strength of champagne and it  does give cause for optimism that total sales will grow again once bars and restaurants can re-open and welcome customers.

The big guns make a statement

In case anyone was thinking that champagne had lost its lustre and that consumers were turning to other beverages and other indulgences, a quick look at the moves that two big drinks companies have made recently will suggest that the truth is quite different.

A couple of months ago, Champagne Lallier, a mid-sized brand with a good reputation based in the village of Aÿ, was acquired by Campari, the giant Italian drinks group.

Lallier has grown significantly over the past 15 years or so under the management of Francis Tribaut, and these days produces about 1 million bottles annually.

The fact that a company of Campari’s size felt the need to enter the champagne market was in itself a powerful indication of its belief in the long-term future of champagne and an indication that it sees plenty of potential for further growth and, more importantly, greater profitability in the years to come.

Not content with just entering the market, Campari has now gone one step further and made a bold statement of their intention to add value to their range of champagnes by appointing Dominique Demarville as Director General and Chef de Cave, or head winemaker.

Monsieur Demarville is a well-known figure in Champagne. He was formerly Chef de Cave at Veuve Clicquot and more recently held the same position at Laurent Perrier

That Campari has now tempted Monsieur Demarville to join Champagne Lallier is yet another indication that they mean business.

Finally, on this subject, let’s remember that a few months ago, Champagne De Telmont, a brand of similar size to Lallier, was acquired by the Rémy Cointreau group who stated its ambition to develop De Telmont into an international brand.

One acquisition of this sort by a major drinks conglomerate is just an interesting event, but two within the space of a few months, is a ringing endorsement of a bright and profitable future for champagne.

No St. Vincent

On a slightly less buoyant note, the traditional Fête de Saint Vincent was cancelled this year because of … ‘you know what’.

Saint Vincent is the patron saint of vignerons and his festival day (January 22^nd) is celebrated in almost every village throughout Champagne.

The day starts with a vin d'amitié which is hosted by one of the champagne makers in each village. When a glass or two have been enjoyed, everyone sets off to church.

Progress to church is usually marked by a procession . The champagne makers of the village dress in traditional costume and carry a symbolic barrel of wine as well as loaves of bread to the local church to be blessed.

The church service is followed by a lunch, often at the village hall, that is liberally washed down with champagne.

If you ever get invited to one of these lunches, but sure to accept but set aside the entire day. It’s not likely that you’ll get much work done afterwards.

Women in Champagne

In the world of entertainment, a London based company called Swipe Films has announced that it will be showing a new film called Sparkling: The Story of Champagne, at this summer’s Cannes Film Festival.

It appears, from what I have read, that the focus will be on the famous brands that are so familiar to most champagne lovers: Bollinger, Veuve Clicquot and Pol Roger, to mention just three, and whilst any film that extolls the appeal of champagne is welcome, there is far more to champagne than a handful of famous brands – some 4,000 other champagne brands to be more precise – and it is to be hoped that their champagnes also come to the attention of a wider audience soon.

The same film will also highlight the important role played, throughout the history of champagne, by women. The names of the Veuve Clicquot, Lily Bollinger and Louise Pommery are already famous, but, once again, there is far more to tell about the women of champagne than just these three.

Both Krug (Margareth Henriquez), Moët & Chandon (Berta de Pablos-Barbier) are headed up by women. Then there is Carol Duval-Leroy at Champagne Duval-Leroy and Évelyne Boizel at Champagne Boizel, yet to stop there would be just to scratch the surface of the increasing importance of women in champagne many of whom go, as yet, unnoticed.

A few you may wish to note down, from houses both large and small, are

• Alice Paillard, of Bruno Paillard
• Nathalie Doucet at Besserat de Bellefon
• Alice Tettienne , Cheffe de Caves at Henriot
• Anne Malassagne at AR Lenoble
• Françoise Bedel at Champagne Françoise Bedel (pictured)
• Charlotte de Sousa at Champagne De Sousa
• Valérie Frison at Val Frison
• and three remarkable ladies at Champagne J. Lasalle

There are many more, but not enough space here to list them all.

That’s all for this month’s bulletin. As I mentioned at the beginning, the start of the year has been lively and there has been a lot to share with you, so if you’ve read this far, thank you.

I’ll be back next month with more, and in the meantime you can email me with any questions and comments at

This email address is being protected from spambots. You need JavaScript enabled to view it.

but for now…

All the best

CHAMPAGNE BULLETIN DECEMBER 2020

Beyond the obvious

This month’s bulletin is a little longer than normal because there are several interesting topics to explore, particularly around the theme of exploring some of the less well-known, but fascinating and rewarding aspects of champagne. I hope you’ll find it interesting.

Credit where credit is due

Anyone who has met me over the past few years or has read any of my posts will know that I am a great fan of the smaller, independent champagne makers. That’s why I am sometimes disappointed by the results of the innumerable champagne competitions and awards which invariably give all the top accolades to a limited number of well-known brands.

I don’t wish to suggest that these brands are not all of very high quality, it’s just that the lists are often very predictable. For me that raises a few questions:

• Which champagnes did not make the Top 10 or Best 20, or whatever name is used.
• Which champagnes simply did not enter the competitions and were not even tasted?
• Which champagnes were entered for the competition but found to be of lesser quality than the winners?

I short, I just feel that some of the amazing champagnes made by less well-known producers don’t get the attention they deserve from many mainstream wine commentators and publications.

That’s why I was so pleased to see the list of ‘Must Have’ champagnes listed by Antonio Galloni in his recent article Champagne 2020 New Releases published on his web site Vinous. Here’s the list and you can see that it includes only one name that I would call a ‘major’ brand· 

• Barons de Rothschild Blanc de Blancs Rare Vintage Cuvée Spéciale
• Chartogne-Taillet 2016 Extra-Brut Blanc de Blancs Heurtebise
• Christophe Baron 2016 Brut Nature Les Hautes Blanches Vignes (Magnum)
• Ulysse Collin NV Extra Brut Rosé de Saignée Les Maillons (base 2016)
• Marie Courtin 2017 Extra Brut Sans Soufre Présence
• Georges Laval 2016 Brut Nature Les Chênes
• Laherte Frères 2016 Extra Brut Blanc de Blancs Les Grandes Crayères 1er Cru
• Cédric Bouchard-Roses de Jeanne 2016 Blanc de Blancs La Bolorée
• Jacques Selosse NV Extra-Brut Le Mesnil sur Oger Les Carelles (2013)
• Jacques Selosse NV Extra-Brut Aÿ La Côte Faron (2013)
• Taittinger 2008 Comtes de Champagne
• Veuve Fourny & Fils NV Extra-Brut Rosé MV 13 Vinothèque
• Vilmart & Cie 2012 Coeur de Cuvée

Each and every one of these champagnes is worthy of any champagne enthusiast’s attention but it must be said that some of them are not cheap, so for anyone with a more modest budget Mr. Galloni also made a list of a few other ‘ Must Haves’ at more affordable prices:

• Margaine NV Brut Le Brut ( Arnaud Margaine pictured left)
• Chartogne-Taillet NV Brut Cuvée Ste.-Anne
• RH Coutier NV Brut Blanc de Blancs Grand Cru
• Gatinois NV Brut Réserve Grand Cru
• Laherte Frères NV Brut Ultradition Blanc de Blancs
• Christophe Mignon NV Brut Nature Blanc de Noirs ADN de Meunier
• JL Vergnon NV Brut Nature Blanc de Blancs Murmure 1er Cru

Everyone has his or her own favourites and opinions of course, and personally, there are several other names that I would have included in one or other of these lists, but the point is that there is a whole world  to discover beyond the famous brands and it’s well worth exploring.

If you’re a champagne lover who usually sticks to the main brands, you may be wondering how to start learning more about the rest of the iceberg that most people never see.

 If that’s you, then take a look at My Champagne Expert, the online champagne course I created after living and working in Champagne for almost 20 years. It will guide you through the region the people and the wines and turn you into a champagne expert in your own right. Here’s a link to find out more.

https://www.mymaninchampagne.com/my-champagne-expert-online-champagne-course

It’s the distribution stupid!

So, if these smaller brands are so good, how come I don’t see them in my local wine shop or restaurant and what makes the bigger brands so successful anyway?

Well, there are a number of factors that explain the success of the famous brands: well managed vineyards and skilful wine makers are two of them, but the smaller producers can lay claim to these attributes as well.

Two important areas where the small producers are less able to compete are the scale of production and the quality of the marketing, but in my opinion, the main reason for any brand’s success the distribution.

The reason why so many people rarely get to drink anything other than brands such as Moët & Chandon, Veuve Clicquot, or Lanson, to mention just a few popular brands, is not because those brands are the best on the market, although they are all of excellent quality.

The real reason is because these brands are available almost whenever the consumer goes. It’s all very well wanting to try something different but if the bar you’re in only offers one option, the chances are that brand will be one of the big names.

Of course, in order to get your brand into the maximum number of outlets you have to have very large-scale production, so that mitigates against the smaller operations too, but as Antonio Galloni suggests, great quality is not limited to just a handful of famous brands and you will usually be rewarded with a great experience if you venture to try something from an independent producer the next time you are considering buying a bottle of champagne.

Bad timing

In previous bulletins I mentioned that all eyes in Champagne were focussed on the end of the year in the hope that sales would bounce back in the crucial run up to Christmas and the New Year. Alas, instead of an improvement in the situation regarding COVID, a second lockdown was implemented which cut the ground from under the feet of all those looking for some rays of sunshine at the end of the year.

Nevertheless, if we look for a few less-discouraging numbers we can see from the figures recently released by the Comité Champagne that in the year till the end of October shipments were down 7.9% versus October 2019. Perhaps not too bad a result, all things considered.

The bulk of this decline was in France (-18.3%) and to a lesser extent in Europe (- 2.8%), but shipments to the rest of the world were up 3.6% versus October 2019 with the USA, Canada, Australia, China and Hong Kong driving this growth.

However, the full year picture shows no real recovery with the 12-month moving annual total (MAT) to the end of October running at 253.1 million bottles. With lockdown restrictions in France and most of Europe showing little sign of improving, the MAT will probably fall again by the end of December, albeit with some green shoots in North America and Asia.

A word about private brands

Many of you reading this bulletin will have contacted me about creating a private brand champagne and you may be asking what all the news above might have on your projects and ambitions.

You won’t be surprised when I say that I don’t have a crystal ball and can’t predict the future. In fact, no one can.

I have just read an article by a university professor who specialises in the study of the champagne industry. He is confident that some things will change as a result of the events of 2020 but quite what is another matter – we may see this happening, but on the other hand, that might happen, or then again it’s possible that the other might come into play.

Not very helpful stuff, but is there anything we can say with certainty?

On the supply side and referring back to some of the topics mentioned above, the famous, luxury brands will never agree to produce private label champagne. That has never been their policy and they will not change now.

Equally, the smaller producers who are beginning to build a reputation will not be interested in private brand business either. Most of them have relatively limited production and their increasing prestige means they can sell all the bottles they produce anyway.

That still leaves hundreds of good quality champagne makers to choose from. Many of these, particularly those who depend to any extent on the French market, will have seen their sales declining and will therefore be all the more open to new opportunities.

On the demand side, the small but welcome signs that champagne sales in the USA and Canada are holding up well, are encouraging.

A good quality champagne, supported by a well-planned marketing strategy and reliable, (not necessarily widespread) distribution will always have a good chance of success.

Anyone who would like to discuss a private brand project is welcome to contact me by email to explore the idea and the options available.

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Many thanks for reading this far and for your interest.

With sincere wishes to everyone for a healthy, happy and prosperous New Year in 2021

Jiles Halling

30^th December 2020