According to The Economist, champagne sales have been declining along with the U.S. economy.
“The bubble has now burst, says Trevor Stirling, an analyst at Sanford Bernstein. Only Moët et Chandon, the biggest of the five public producers (responsible for Veuve Clicquot, Mercier, Ruinart and Krug, as well as the Moët marque) maintained its revenues in the third quarter. The other four—Rémy (Piper Heidsieck and Charles Heidsieck), Vranken Pommery, Boizel (Lanson) and Laurent Perrier—have seen their sales plunge. Worst hit was Laurent Perrier, where sales were 30% lower in the third quarter than in the same period in 2007.
Because the financial turmoil has deepened since September, Mr Stirling reckons that sales have since fallen even further. “Wholesalers will be sitting on a lot of stock, so we are expecting big price cuts even before Christmas, traditionally the busiest selling season,” he says.”
What will you be drinking on New Year’s?