- Sales in six months to end of June down 19.5% to EUR87.8m (US$97.2m)
- Marked deterioration on 2023’s -6.1% sales showing
Champagne group Lanson-BCC has baulked at forecasting its full-year performance after six-month sales slid badly.
Having seen the first six months of last year fall back by just over 5% and the full 12 months of 2023 drop by 6%, the company, which comprises eight champagne houses including its namesake, said late last week that H1 sales were down by approaching 20%. Consequently, Lanson-BCC said it would not estimate its 2024 performance at this time, given the “uncertain economic and political context, with a lack of visibility over the end of the year”.
In related commentary, the company flagged lower levels of exports to Germany, Japan and the UK over the six months, while Australia and the US exhibited signs of “stagnation” as a result of continued inventory surpluses in the markets.
While the group did not provide specific volumes numbers, it admitted that six-month volumes showed a “higher contraction” than the overall champagne market. The results announcement cited figures from trade association Le Comité Interprofessionnel du vin de Champagne as showing H1 volumes for the champagne category declining by 15.2% on the corresponding period a year ago. While domestic volumes were down 10.2%, total champagne exports tumbled by 18.2%, according to the organisation.
“As a family-owned champagne pure player, Lanson-BCC is still firmly committed to its long-term development strategy focused on value,” the company said. “The group’s ambition to further strengthen its position in the high-end wines segment is still one of its core priorities.
“This approach is particularly crucial faced with the continued increase in grape prices and the rapid rise in the cost of stock financing.”
