Champagne Lanson sales fail to fizz as prices rise
Champagne Lanson suffered a sharp drop in its UK sales in 2024 as drinkers turned their backs on bars and restaurants amid the cost-of-living crisis.
New accounts filed with Companies House show the brand’s turnover was slashed from £45.2m to £35.5m last year while its pre-tax profit also fell from £1.7m to £819,000.
The champagne producer, which can trace its roots back to 1760, said its sales falling by 27 per cent was in part because the total exports of champagne from France to the UK declined by 7.5 per cent in 2024.
Compared to 2023, when 25.5 million bottles were brought into the UK, a total of 23.6 million bottles were imported last year.
But despite the drop in volume, the average value of champagne exports to the UK increased by 7.4 per cent over the year.
Champagne Lanson added that the average value per bottle rose by six per cent.
Cautious consumers hit Champagne Lanson
A statement signed off by the board said: “The year began with residual surplus inventory in the market and flat consumer consumption, setting a challenging tone from the outset.
“Although UK inflation and interest rates fell slightly during the year, this did not translate into higher discretionary spending.
“Consumers remained cautious, with frugality defining much of their purchasing behaviour.
“Within the off trade channel, there was a noticeable shift towards retail exclusive label champagne, often at the expense of the Grandes Marques brands.
“In Q4 2024, competitor brands intensified their promotional activities, taking advantage of the surplus stock available in the market. This further impacted overall sales dynamics.
“Major retail customers reduced their stock levels and adopted more conservative ordering practices to manage cash flow.
“This cautious approach in purchasing patterns from key partners had a direct effect on the company’s sales volumes.
“In the on trade, sales declined as consumers continued to limit their discretionary spending, choosing to go out less frequently to bars and restaurants and instead opting to entertain at home.
Champagne Lanson added: “Despite a challenging sales environment, tight control over overhead costs ensured the company’s financial position remained stable through to the end of the year.”
Historic label battling ‘volatile environment’
On its future, Champagne Lanson said: “Our long-term vision is to have consistent, profitable and responsible growth.
“This remains a challenge in today’s volatile environment, characterised by low growth, the high cost of finance and geopolitical challenges but we remain focused on delivering the strategy.
“The focus on the brand building strategy for Champagne Lanson through the UK’s marketing investment strategy remains an essential part of our core strategic vision.
“The company will continue to monitor and strictly control costs to achieve its strategic objectives.”