An uptick in people toasting West End night outs with a glass of fizz failed to boost profit at the UK arm of bubbly producer Champagne Lanson, according to newly-filed documents.
The firm, whose French parent company has been making Champagne since 1760, saw its sales volumes fall by four per cent in 2023, although a nine per cent increase in its average sales value helped it to grow its turnover to £45m from £43m in the year before.
Lanson said the reduction in sales volume was despite what it described as “buoyant” hotel activity in London’s West End, with events like Wimbledon and Chesterton’s Polo in the Park also helping to boost its on-trade sales.
Champagne Lanson’s pre-tax profit, however, dipped to £1.7m over the 12 months from a little over £2.3m in 2022.
The Champagne seller, which is owned by the French group Lanson BCC, blamed the year-on-year reduction in UK sales on the “absence of activity and good feeling” seen in 2022 due to the Queen’s Platinum Jubilee holiday.
Despite a drop in profit Lanson celebrated that it hadn’t been hit by shortages seen across the rest of the Champagne industry in 2023, receiving what it described as “healthy replenishment orders” from its partners.
Lanson has been Wimbledon’s official supplier of Champagne for the tournament for the past 47 years and is estimated to have served more than four million glasses of bubbly in that time.
The company signed a new five-year agreement with The All England Lawn Tennis Club in 2023.
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Wimbledon and West End fail to boost profit
In a statement published to Companies House, Champagne Lanson said: “On trade sales continued to grow for Champagne Lanson, as the hotel trade in London was buoyant along with consumers looking for experiences, such as visiting the theatre in the West End and live sporting and social events – such as Wimbledon and Chesterton’s Polo in the Park.
“We also experienced good growth from other brands in our portfolio, particularly those from Maison Chanoine, who enjoyed good profile in specialist retail and airline travel.
“The phasing of orders from major customers returned to pre-pandemic timings, as scarcity, particularly on brut non-vintage cuvees, from other producers abated and supply chain challenges recovered post-Brexit.
“This meant that much more of our trade was conducted in the final quarter of the calendar than in 2022.
“Our long-term vision is to have consistent, profitable and responsible growth. This remains a challenges 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.”
Increased activity in London’s West End failed to boost Champagne sales.
Lanson sees ‘marked decline’ in revenue
Lanson BCC, the French group behind Champagne Lanson, reported a decrease in both its revenue and net income in 2023.
The Champagne maker saw its revenue fall to €271m (£228m) during the year, down from €289m (£242m) in the 12 months before. Lanson said this reduction was “a more marked decline” than experienced by the industry at large.
As a result its net income fell by just over five per cent from £39m in 2022 to £37m last year.
In a statement published to its website the group said: “After two years of vigorous post-covid recovery, the global 2023 Champagne wine market recorded an 8.2 per cent drop in volume shipments to 298.8m bottles, while generating almost stable revenues of over €6bn.
“France and exports declined uniformly by 8.2 per cent (CIVC estimate).
“Distributors around the world had surplus inventories at the beginning of 2023, due to excess precautionary purchases and logistical difficulties in 2022.
“In addition, the inflation context and fears caused by rising interest rates weighed on demand.
“In this environment, the Lanson BCC group recorded a higher volume contraction than the industry overall, with consolidated revenues down 6.1 per cent to €271.7m.
“Excluding the brokerage subsidiary, which activity is traditionally subject to fluctuations, consolidated revenues came to €266.4m, down 5.8 per cent.
“Revenues in France fell by 5.4 per cent and export revenues by 6.1 per cent.
“The decline in volumes shipped by the group was mainly due to surplus inventory in export markets (USA, Australia) and the discontinuation an entry price range at Champagne Chanoine Frères in France.”