Despite a surge in people celebrating West End nights with a glass of bubbly, profits at Champagne Lanson’s UK branch didn’t see a boost, according to newly-filed documents.
The company, whose French parent has been producing Champagne since 1760, experienced a 4% drop in sales volumes in 2023. However, a 9% increase in average sales value helped its turnover grow from £43m to £45m compared to the previous year.
Lanson attributed the reduction in sales volume to what it described as “buoyant” hotel activity in London’s West End, with events like Wimbledon and Chesterton’s Polo in the Park also boosting its on-trade sales.
Champagne Lanson’s pre-tax profit, however, fell to £1.7m over the 12 months, down from just over £2.3m in 2022.
The Champagne producer, owned by the French group Lanson BCC, blamed the year-on-year decline in UK sales on the absence of the celebratory atmosphere seen in 2022 due to the Queen’s Platinum Jubilee holiday.
Despite the profit drop, Lanson celebrated not being affected by the shortages seen across the rest of the Champagne industry in 2023, noting “healthy replenishment orders” from its partners.
Lanson has been Wimbledon’s official Champagne supplier for the past 47 years, serving an estimated four million glasses of bubbly during that time. In 2023, the company signed a new five-year agreement with The All England Lawn Tennis Club.
According to a statement filed with Companies House, Champagne Lanson reported: “On-trade sales continued to grow, supported by the buoyant hotel trade in London and consumers seeking experiences like theatre visits in the West End and live events such as Wimbledon and Chesterton’s Polo in the Park.
“We also saw good growth from other brands in our portfolio, especially those from Maison Chanoine, which performed well 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, decreased and supply chain challenges improved post-Brexit.
“This resulted in much of our trade being conducted in the final quarter of the calendar year, unlike in 2022.
“Our long-term vision remains consistent, profitable, and responsible growth. This is challenging in today’s volatile environment, characterized by low growth, high finance costs, and geopolitical issues, but we remain focused on delivering our strategy.
“Building the Champagne Lanson brand through the UK’s marketing investment strategy is a key part of our core vision.”
Despite increased activity in London’s West End, Champagne sales remained unaffected.
Lanson records a ‘significant decline’ in revenue
The French group Lanson BCC, which owns Champagne Lanson, reported a drop in both revenue and net income in 2023.
The Champagne maker saw its revenue decline to €271m (£228m) from €289m (£242m) the previous year. Lanson noted that this decline was “more pronounced” than that experienced by the industry as a whole.
Consequently, its net income fell by just over 5%, from £39m in 2022 to £37m in 2023.
In a statement on its website, the group said: “After two years of strong post-COVID recovery, the global Champagne market recorded an 8.2% drop in volume shipments to 298.8m bottles in 2023, while revenues remained almost stable at over €6bn.
“Both France and export markets saw an 8.2% decline (CIVC estimate).
“Distributors worldwide had surplus inventories at the beginning of 2023 due to precautionary purchases and logistical challenges in 2022.
“Additionally, the inflation context and concerns over rising interest rates dampened demand.
“In this environment, the Lanson BCC group experienced a higher volume contraction than the industry overall, with consolidated revenues down 6.1% to €271.7m.
“Excluding the brokerage subsidiary, whose activity is traditionally subject to fluctuations, consolidated revenues were €266.4m, down 5.8%.
“Revenues in France fell by 5.4%, while export revenues declined by 6.1%.
“The decrease in volumes shipped by the group was mainly due to surplus inventory in export markets (USA, Australia) and the discontinuation of an entry-price range at Champagne Chanoine Frères in France.”
Increased activity in London’s West End failed to boost Champagne sales.
Champagne Lanson’s revenue saw a marked decline.
Read more:
– Wet Wimbledon fails to dampen profits at All England Club as sales hit a new record
– Agincourt, Waterloo, Sparkling Wine: English fizz makes further inroads into champagne lead
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Despite a surge in people celebrating West End nights with a glass of bubbly, profits at Champagne Lanson’s UK branch didn’t see a boost, according to newly-filed documents.
The company, whose French parent has been producing Champagne since 1760, experienced a 4% drop in sales volumes in 2023. However, a 9% increase in average sales value helped its turnover grow from £43m to £45m compared to the previous year.
Lanson attributed the reduction in sales volume to what it described as “buoyant” hotel activity in London’s West End, with events like Wimbledon and Chesterton’s Polo in the Park also boosting its on-trade sales.
Champagne Lanson’s pre-tax profit, however, fell to £1.7m over the 12 months, down from just over £2.3m in 2022.
The Champagne producer, owned by the French group Lanson BCC, blamed the year-on-year decline in UK sales on the absence of the celebratory atmosphere seen in 2022 due to the Queen’s Platinum Jubilee holiday.
Despite the profit drop, Lanson celebrated not being affected by the shortages seen across the rest of the Champagne industry in 2023, noting “healthy replenishment orders” from its partners.
Lanson has been Wimbledon’s official Champagne supplier for the past 47 years, serving an estimated four million glasses of bubbly during that time. In 2023, the company signed a new five-year agreement with The All England Lawn Tennis Club.
According to a statement filed with Companies House, Champagne Lanson reported: “On-trade sales continued to grow, supported by the buoyant hotel trade in London and consumers seeking experiences like theatre visits in the West End and live events such as Wimbledon and Chesterton’s Polo in the Park.
“We also saw good growth from other brands in our portfolio, especially those from Maison Chanoine, which performed well 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, decreased and supply chain challenges improved post-Brexit.
“This resulted in much of our trade being conducted in the final quarter of the calendar year, unlike in 2022.
“Our long-term vision remains consistent, profitable, and responsible growth. This is challenging in today’s volatile environment, characterized by low growth, high finance costs, and geopolitical issues, but we remain focused on delivering our strategy.
“Building the Champagne Lanson brand through the UK’s marketing investment strategy is a key part of our core vision.”
Despite increased activity in London’s West End, Champagne sales remained unaffected.
Lanson records a ‘significant decline’ in revenue
The French group Lanson BCC, which owns Champagne Lanson, reported a drop in both revenue and net income in 2023.
The Champagne maker saw its revenue decline to €271m (£228m) from €289m (£242m) the previous year. Lanson noted that this decline was “more pronounced” than that experienced by the industry as a whole.
Consequently, its net income fell by just over 5%, from £39m in 2022 to £37m in 2023.
In a statement on its website, the group said: “After two years of strong post-COVID recovery, the global Champagne market recorded an 8.2% drop in volume shipments to 298.8m bottles in 2023, while revenues remained almost stable at over €6bn.
“Both France and export markets saw an 8.2% decline (CIVC estimate).
“Distributors worldwide had surplus inventories at the beginning of 2023 due to precautionary purchases and logistical challenges in 2022.
“Additionally, the inflation context and concerns over rising interest rates dampened demand.
“In this environment, the Lanson BCC group experienced a higher volume contraction than the industry overall, with consolidated revenues down 6.1% to €271.7m.
“Excluding the brokerage subsidiary, whose activity is traditionally subject to fluctuations, consolidated revenues were €266.4m, down 5.8%.
“Revenues in France fell by 5.4%, while export revenues declined by 6.1%.
“The decrease in volumes shipped by the group was mainly due to surplus inventory in export markets (USA, Australia) and the discontinuation of an entry-price range at Champagne Chanoine Frères in France.”
Increased activity in London’s West End failed to boost Champagne sales.
Champagne Lanson’s revenue saw a marked decline.
Read more:
– Wet Wimbledon fails to dampen profits at All England Club as sales hit a new record
– Agincourt, Waterloo, Sparkling Wine: English fizz makes further inroads into champagne lead