Christmas is coming – make or break for Grand Marques?

Alcoholic drinks are always big business for the major retailers, but there’s no more important time in the retail calendar than Christmas, when we all treat ourselves to a bit of what we fancy (in my case, Bailey’s, vintage Champagne and mulled wine – not all together I hasten to add). With competition amongst the supermarkets fiercer than ever with their well-publicised price matches, we’re set to see another bumper year of drinks offers this Christmas. This is obviously great for consumers, but what is this doing to big brands’ equity?

Champagne brands have suffered a lot in recent years as half-price promotions have become commonplace in the wine aisle at Christmas. The effects on the sparkling wine category are now becoming evident, with supermarkets’ ranges now full of wines in the £8-15 bracket, including a plethora of cavas, proseccos, and New World fizz including the latest craze, Sparkling Sauvignon Blanc (commercial genius, that one!). Champagne still has its spot on the shelf but now its cut-price supermarket exclusives on offer at £15-£20 that take pride of place on gondola ends rather than top brands at full price. In this environment, how can luxury brands such as Veuve Clicquot, Moët and Bollinger persuade customers to part with £30+prices?

With a double dip recession on the cards for next year and voucher culture gripping the nation, the Grandes Marques are going to need pull out all the stops with engaging, creative and innovative marketing campaigns to maintain their loyal fan base. If they don’t 2012 may be a somewhat challenging year for the Champagne region. 

Posted by Lucy Richardson