TNS Global has recently announced that Champagne and sparkling wine could double their market share in the UK and the US, and quadruple growth in India and China within the next few years.
Having surveyed 39,000 people in 17 markets, TNS shows India and China as having the strongest growth.
The report showed that the combination of an increased spend among those already drinking sparkling wine with the many new drinkers in the developing world is presenting opportunities for sparkling wine producers.
Jan Hofmeyr, chief researcher into behaviour change at TNS, picked out a number of issues holding back more rapid growth in this category, saying: “While we can see a huge worldwide appetite to drink more sparkling wine and Champagne, most people are still held back by cost. These drinks are perceived as indulgences, enjoyed mainly on special occasions.”
However, he added: “The good news for winemakers is that people consider sparkling wines both taste better and offer greater enjoyment than other alcoholic drinks.”
As a result, Hofmeyr continued, “If affordable sparkling wines can be made more accessible, particularly in developing markets, and be positioned as a drink for celebrating life rather than only special occasions, the sector has a sparkling future.”
TNS also stated that consumers do not plan to increase their alcohol consumption overall, but rather that they want to drink sparkling wines more regularly.
Source: Drinks Business
Champagne Jacquart is eyeing acquisitions as it seeks to become a bigger international player.
Jacquart is looking for possible buys in the Champagne region and expects opportunities to come its way in the next couple of years.
“There’s a consolidation process going on in Champagne,” Jacquart’s MD, Laurent Reintau, told Harpers at the London International Wine Fair last week. “We want to be prepared for that,” he said.
The group and its parent arm, the Champagne Alliance cooperative, have already shown their desire to expand, having acquired Montaudon Champagne from Moet Hennessy Louis Vuitton in 2010. Jacquart is looking to require more vineyards and stock as it seeks to expand into US and Asia.
While the UK and Germany remain the firm’s key export markets, volume sales of its Champagne to Japan are up 35% year-to-date, according to Reinteau. “Asia is becoming significant and is seeing significant growth,” he said, adding that Jacquart is also making inroads in the “magic triangle” of Shanghai, Singapore and Hong Kong.
However, Reinteau said that the company will not be rushed into expansion. “We know it will take time.” In 2011, Jacquart sold 3m bottles of Champagne, of which 55% was exported.
Reinteau said that, alongside emerging markets, he is pleased with his firm’s efforts to expand distribution in high-end bars and independent retailers in the UK over the past year. Distribution and premium positioning are key in the UK, he said. “The UK is still a major market for Champagne, but we can’t expect big growth.”