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Vranken-Pommery Champagnes pay the price of the Egalim law

By Vitisphere January 29, 2020
Vranken-Pommery Champagnes pay the price of the Egalim law
“Champagne, although part of the luxury category, is above all a festive wine bought on impulse prompted by special offers” claims the Reims-based group.
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or 2019, the Vranken-Pommery Monopole group has reported a 9% drop in sales to 274.6 million euros. “The drop in sales is caused entirely by the fall in Champagne and Port sales in the off-trade in France”, stated a terse press release from the Reims-based group. Seen as a direct consequence of the introduction of the Egalim law in super/hypermarkets, “which is causing a sea-change in traditional offers that incentivise sales”, Vranken-Pommery Champagnes* have witnessed a 10% drop in sales over the year (reaching 209.4 million euros).

The removal of customary sales offers has disoriented consumers, who have sharply reduced the impulse buys they had been accustomed to for more than a decade”, explained the Vranken-Pommery group. In a move to adapt to this sales reversal in French multiple grocers, the Champagne firm has announced it is reducing its purchase commitments.

Good rosé performance

Although sales of Port are also falling, Provence and Camargue wines are on the increase. For rosés, “the nearly 11% increase in sales is fuelled by the Sable de Camargue blush wines” (particularly the organic Pink Flamingo brand with +20% in volume sales in 2019). Focusing on exports, the group has also reacted to the 25% US tax on bottles of French still wine by shipping bulk consignments to be bottled in the US.

* Vranken, Pommery & Greno, Heidsieck & Co Monopole, Charles Lafitte and Bissinger & Co.

 

 

 

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