Offering Champagne at Cava prices could ‘seriously damage’ category (by Carol Emmas)

Posted: December 27, 2012 by Johan Botha in Europe, France, MCC, Sparkling, Vintage, Wine, Winemaking, Wineries, World wine news
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Noel Reid, wine and spirits buyer at Frederic Robinson has said positioning Champagne at prices not far above that of Prosecco or Cava could “very seriously damage the reputation of the entire segment”.

His comments come on the back of the Harpers’ news story on December 19, when Dr Steve Charters MW, professor of Champagne management at Reims Management School claims on the back of the Eurozone crisis the market will not pick up until 2014/2015.

In response from an on-trade perspective Reid said: “I think it is fair that Champagne sales mirror the success or otherwise of our economy at that time.” He added there will always be individual brands that buck the trend due to great marketing or brand loyalty, in other words success stories which you find within any consumer sector.

However, Reid said the fear for Christmas 2012 and 2013 is that retailers will simply “buy” market share with huge price reductions that have a significant impact on sales and can lead to a real worry of consumers believing that the prices are sustainable with clearly they are not.

Read on …

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