Cheers To Consumer Confidence As Champagne Sales Soar 88%
By CultureBanx Team
- LVMH part owner of Jay-Z’s Armand de Brignac champagne brand reported a whopping 22% rise in sales
- Champagne sales in the U.S. popped 88.5% over last year
As more people get vaccinated, a new tasty measurement tool for consumer confidence is pointing up with champagne sales on the rise. During the four weeks that ended March 27, champagne sales in the U.S. popped 88.5% over last year, according to NielsonIQ. What makes the consumption of champagne an accurate assessment of consumer confidence?
Why This Matters: When consumers are drained politically, economically and emotionally they tend to drink liquor. On the other hand, when people are in jubilation the drink of choice is more likely to be wine, beer and champagne and it shows in the strong sales. For example, LVMH (LVMUY +0.70%), owner of Veuve Clicquot, Moet & Chandon and half of Jay-Z’s Armand de Brignac champagne brand reported a whopping 22% rise in its bubbly sales for the first three months of the year. That’s a gain of 15% over its 2019’s first quarter.
Demand for champagne appears to be bouncing back so quickly following a global sales decline of 18% in 2020, that some distributors are having trouble securing cases for their customers. Not to mention the Millennial pink obsession has spawned rosé into a goldmine, with the table version making 48% of its sales in the warmer months, according to research company Nielsen.
Situational Awareness: People are ready to celebrate again and not just for the bigger milestones, but even just for those everyday moments. After the Great Recession, the industry bounced back and saw seven consecutive years of growth in Champagne shipments to the U.S., according to the Champagne Bureau, USA. The bubbly drink is predicted to have one of the strongest holiday seasons on record.
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