Majestic Wines hit as customers ditch champagne

Champagne sales at retailer Majestic Wine fell over the Christmas period as cash-conscious customers traded down. 

 Majestic Wine hit as customers ditched champagne of Christmas The warehouse chain reported a 2.9pc fall in like-for-like sale for the ten weeks ending January 5, as business customers switched to wine and private customers took sparkling drinks to parties instead of champagne.

Chief executive Steve Lewis said he expected the retail environment to remain challenging throughout 2009, adding that companies would need to offer "something exceptional" to attract customers.

"We saw modest growth in sales to our private customers over the Christmas period," he said. "Sales to businesses, especially of Champagne, were down on last year as they continued to rein in their spending.

Mr Lewis added that the company would be importing more wine from non-EU countries such as New Zealand, Argentina and Chile, as it continues to suffer from sterling's weakness against the euro.

Sales of champagne slumped by more than a quarter in the run-up to Christmas, as households reined in their early festive spending.

Figures from research specialist Nielsen revealed that the number of bottles of champagne sold in the 4 weeks ending December 20 fell by 22pc compared to the same period last year, while sparkling wine sales fell 14.8pc, as the global economic crisis continues to weaken customer spending power.

Champagne sales traditionally peak in November and December.

The findings come after France's champagne wine board, the CIVC, showed it first major fall for two decade, with the number of bottles leaving the main cellars in October falling by 23pc, compared with the same month a year earlier.

Exports to Britain fell by 8pc in the first nine months of this year, while sales to the US collapsed by 17pc, with the falls recorded before the full impact of the financial storm.

Daniel Lorson, a CICV spokesman said: "You need to feel good, to feel happy to drink champagne. It's a way of life. And when the environment is not so good, people perhaps don't feel quite like drinking as much."