"The champagne is fast regaining its traditional growth rate, an increase in sales volume of 2% per year" says Paul Francois Vranken, CEO of Vranken Pommery. "At this rate we should quickly reach the limits of vineyard production, amounting to 360 million bottles a year, if the weather will be good."
In addition, for 2015 is expected to expand Champagne appellation, but the new vineyards begin to produce until 2020. Meanwhile, the champagne House are preparing to fight to recover by buying acres of vineyards, from other crops or Maisons. For those companies that still have a great purchasing power could be a solution, while Tenedos into account the high investment to bear. Today, an acre in Champagne is worth over 1 million Euro. To retrieve
contracts for the supply of grapes, some houses could be tempted to get their hands on brands for sale. LVMH, in fact, is trying to acquire the Remy-Cointreau Group Champagne (Piper Heidsieck and Charles), the Group Lanson BCC is in the running to buy "acres" despite having contracted over the years a very high debt.
awaiting recovery contracts for the supply of grapes, the number one sector, LVMH (Moet & Chandon, Veuve Cliquot, Dom Perignon ...), prefer to limit their production of grapes only for its own brands. The Group has decided to clean up its portfolio by selling the brand C. Montaudon Avize. Given the shortage of
next product, all the companies in Champagne in 2011 will be forced to raise their selling prices. Vranken Pommery, for example, has already decided to increase about 4%. "We had reduced our prices before the crisis, our price increase for 2011 will be around around 3% ", says Jean-Pierre Cointreau, CEO of Champagne Gosset.
0 comments:
Post a Comment