Cheers To Consumer Confidence With Champagne Sales Topping $6 Billion
By CultureBanx Team
- LVMH part owner of Jay-Z’s Armand de Brignac champagne brand reported a whopping 22% rise in sales
- In 2021, global champagne sales hit $6.2B
As more people get vaccinated, a new tasty measurement tool for consumer confidence is pointing up with champagne sales on the rise. The industry located exclusively in the Champagne region of northeast France, tracked to sell 315 million bottles in 2021, with sales totaling $6.2 billion, France24 reported. 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 7% rise in its bubbly sales during Q3 of 2020. That’s a gain of nine million over its 2019 revenue.
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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