The Belle of the Ball
Every day is a party for Champagne as the region’s allure continues to sparkle.
Robyn Moreno

Fritz is not alone in her love affair with the French bubbly. Last year, Champagne imports rose 12-percent continuing a booming five-year growth trend, according to the U.S. Office of Champagne. Americans now only trail the British in Champagne consumption, though demand in emerging markets like China and Russia is rising.

So how did Champagne shift from a holiday and wedding staple to a more mainstream indulgence? “The conception of Champagne has changed,” says Pascal Boye, North and South American sales director for Nicolas Feuillatte Brands. “People are beginning to understand it’s not just for toasting anymore. It’s a fine wine that can be enjoyed with food.” Cathleen Burke-Visscher, senior VP of marketing for Kobrand whose portfolio includes Taittinger, adds that Champagne’s demographic has expanded as well. “We’re seeing younger consumers starting to enjoy Champagne.” She notes that as designer cocktail prices soar at trendy New York City spots, a glass of Champagne can be an affordable, or at least equitable option.

Fashion - Forward
Champagne’s metamorphosis from festively focused to everyday chic is due largely to the aggressive marketing campaigns of large négotiant houses. From Moët & Chandon sponsoring New York’s Fashion Week events to big-name rappers shouting out brands by name (to the chagrin of some houses) Champagne has successfully positioned itself as the drink of choice of those who have, and those who aspire to have it all, at least for the night.
In fact, Champagne’s connection with fashion has ignited a huge trend in bottle design and gift packaging. Veuve Clicquot has partnered with Pucci; Karl Lagerfeld has created custom carriers for Dom Perignon, and Piper Heidsieck—who, in the past has worked with Jean-Paul Gaultier—has just launched a limited edition of its NV Brut Rosé Sauvage with bottle design and accessories by the cutting edge duo Viktor & Rolf.

Maximizing Off-Premise Sales
“Champagne gift packages and accessories are big in our store throughout the year,” says Michael Aaron, chairman of Sherry Lehmann Wine and Spirits, noting that it accounts for between 50 to 60-percent of his Champagne sales. And for the surge in Champagne sales for the holiday season, retailers must accommodate. “We sell Champagne pretty well all year long,” says Bob Selby of Kappy’s Fine Wine & Spirits in Massachusetts, “but we see a huge lift in sales for the holidays, especially for New Year’s.” Charlie Beatty of Canal’s Bottle Shop in New Jersey, notes, “For us, 90-percent of Champagne sales happen in the month of December. People will buy all year long, whether it’s for a wedding or a Bar Mitzvah, but in December everybody grabs a bottle of Champagne.” To gain as much sales momentum as possible, Selby makes certain to stock labels that aren’t available in his store throughout the year. “We always make sure to carry a few more brands.” Point-of-sale displays are a great advantage to the retailer at this time. Notes Selby, “Suppliers and producers tend to have better displays and packages suitable for gift giving during the holidays.”

David Jabour of Twin Liquors in Texas likes to practice what he calls “top-of-mind awareness.” He explains, “There’s nothing better than bubbly to set the tone for the season. We enjoy promoting Champagne the entire year, but bubbles really set the holiday spirit in motion.” According to Jabour, marketing is key. Along with traditional strategies like point-of-sale displays and holiday advertising, Twin Liquors makes certain to participate in local community events. “When there is a fund raiser or charity event taking place in December, it is a great opportunity for us to integrate Champagne.”
Beatty says that they run newspaper ads promoting their Champagnes. “Throughout the year, we might run 3-4 Champagne ads and about 40 for wines, but for the holidays, this is reversed. We also have a newsletter we mail out and all year I’ll feature Champagne a few times, but towards the end of December, I’ll feature it all week long.”

According to Jabour, staff motivation is an added value to Twin Liquors. “We make sure we have plenty of Champagne for our staff to earn monetary incentives for those sales. Top-of-mind awareness, top-of mind priority, for both consumer and retailer alike, is how the game is played,” he remarks. Michael Berkoff of BevMax in Connecticut would agree: “Since customers are already in the holiday shopping mode, we see Champagne sales as impulse buys.” Starting early will help plant the idea in their minds. “Beginning in mid-November, we feature Champagne displays on the floor. Running early sales helps as well,” he says.

And tastings are a must to assist those indecisive customers. At Kappy’s, says Selby, “We hold specialized Champagne tastings on Friday evenings with four or five different styles. It really gives people a chance to hone in on what they like.” BevMax takes this concept up a notch and holds Champagne and food pairing tastings for the holidays. At Canal’s Bottle Shop, it’s “Champagne Central” once December begins: “For tastings, normally we sample a half-dozen wines, but during the holidays all that changes to Champagne. In terms of my inventory sales, I might carry three cases of Champagne a year; by New Year’s, that number increases tenfold,” remarks Beatty. And his advice for increasing sales volume during the holidays? “Concentrate on New Year’s. People celebrate all different holidays at all different times, but everybody celebrates New Year’s; it’s international.”

Rosé Champagne Continues to Captivate
Another surging category for Champagne is rosé which saw a 32-percent increase in sales last year. “Rosé Champagne is hot,” says Boye, whose rosé is Feuillate’s number two best seller after their brut. “For the last couple of years demand has been high as consumers now understand that rosé is not sweet, it’s not White Zinfandel.”

The only problem with rosé’s popularity may be that producers can’t always make it fast enough. The Comité Interprofessionnel du Vin de Champagne (CIVC), Champagne’s governing body, mandates that non-vintage Champagne be aged for 15 months, and vintage Champagne for three years. Moreover, the red grapes needed for rosé’s color aren’t as prevalent in the region. “We never seem to have enough rosé,” says a salesman at Astor Wine’s & Spirits.

In fact, the worldwide demand for the luxe libation — which increased by 5 percent last year — has many grumbling about a shortage, though the severity of the problem depends on whom you ask. An off-the-record importer said, “I spend most of my time just trying to get my same allocation of Krug as last year.” Stephane Colling, general manager of L’ Atelier de Joël Robuchon, says he hasn’t experienced a problem putting together a stellar list, though he does admit he’s lucky to have the names of Joël Robuchon and The Four Seasons behind him.

Vintage vs. Non-Vintage
What everyone does seem to agree upon is that the bruising Euro is raising Champagne prices. Aaron has seen the price of his top-selling Champagne, Veuve’s NV Yellow Label, increase from $33 in January to almost $40 in October. Interestingly, as NV Champagne becomes more expensive, demand for single vintage and smaller house and grower Champagnes has increased. “Veuve Yellow Label is still my number one selling Champagne,” says Aaron. “But, I have a group of consumers who when seeing the price of NV Champagnes will opt to spend an extra $15 and get a single vintage Champagne.”

Luckily Veuve is already involved in the single vintage category and is intent on staying so. “Single vintage is a big focus for us,” says Aisha Thompson, brand manager for Veuve Clicquot. “We recognize that consumers are craving something unique: A Champagne that has individual character, that can grow and change over time.” Gosset, a smaller négotiant, has also found much success with vintage Champagnes. Their Grand Millésime Brut 1999 has been a hit stateside. “Because people tend to focus on entry level non-vintage and rosés, or Prestige Cuvées, we have found a nice niche in the middle,” says Oumy Diaw of Gosset.

Champagnes with a Story
This sophisticated Champagne consumer who is seeking more nuanced “wine-like” Champagnes is also creating a cult following of grower Champagnes. Jonathan Schwartz, portfolio manager of Terry Theise Estate Selections who represents 16 Champagne growers, says he has seen sales growth every year. “Customers are attracted by the quality and integrity of our Champagnes,” says Schwartz who has enviable by-the-glass placement at Per Se and Jean Georges. “Just like people prefer shopping at green markets over a chain grocery store, our customers are attracted by the fact these Champagnes are made by families who oversee the process from start to finish.”

While some wine stores won’t deal with small growers because of the limited productions, their biggest champions are restaurant sommeliers and staff, who are feverishly preaching the good word. David Lombardo, wine and beverage director of Landmarc in Tribeca and the new outpost in the Time Warner Building, is famous for keeping his wine and Champagne prices low so people can try wines they might not always be able to afford to taste, like the bottle of Dom Perignon he offers for the bargain price of $165. Because he is so impassioned about turning people on to new things, Lombardo is a big fan of the small grower houses. “They have a great back story. We have a rosé that is from an 11th generation family,” says Lombardo. “That excites me.”

While Colling does aim to implement more prestige cuvées like Dom Perignon at L’Atelier, he’s also a supporter of small growers. “Big labels are a big sell, and that’s important,” concedes Colling. “But sharing an unknown Champagne with a customer is fun for me, because we get to judge the wine by taste not by name.”

Regardless of whether it’s non-vintage, single vintage, “farmer fizz”, or a fashion must-have, the desire for Champagne doesn’t seem to be flattening anytime soon. Cheers to that.

What’s in Stock?
Champagne does not necessarily have to be synonymous with expensive. There are plenty of high quality yet affordable non-vintage Brut Champagnes that you can offer your customers this holiday season. Here are some tried and true brands (in alphabetical order):
Cattier
Guy Charlemagne
Deutz
Gosset
Charles Heidsieck
Henriot
Jacquesson
Lanson
Laurent-Perrier
Moët & Chandon
Mumm Cordon Rouge
Nicolas Feuillate
Bruno Paillard
Perrier-Jouët
Piper-Heidsieck
Pol Roger
Pommery
Louis Roederer
Ruinart
Taittinger
Veuve Clicquot

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