The group attributed the decline in Champagne shipments to residual overstock and weaker consumer demand. Credit: pixinoo/Shutterstock.com

Champagne producer Lanson-BCC has blamed inflationary pressures and “geopolitical uncertainties” for a drop in revenues and volumes in 2024.

The France-headquartered business reported a 6% decline in consolidated revenue to €255.4m ($265.9m), along with a 9.2% decrease in volumes totaling 271.4 million bottles.

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In a financial statement issued yesterday (30 January), Lanson-BCC said total revenues for the overall Champagne sector were estimated at just under €6bn for last year, quoting the Comité Interprofessionnel du Vin de Champagne (CIVC).

It added that, according to CIVC, volumes in France were down 7.2%, while exports fell 10.8%. France accounts for 43.4% of volumes, while overseas shipments represent 56.6%.

For the company itself, export revenues, which account for 52.6% of its volumes, were particularly impacted, falling by 11.8% compared to the previous year.

The decline was largely due to lower shipments to the UK, driven by “residual overstock and subdued consumption”.

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Conversely, Lanson-BCC’s domestic market in France, responsible for 47.4% of its total volumes, showed a slight improvement, with revenues increasing by 0.7% from 2023.

In terms of financial performance, the first half of 2024 saw a 19.5% decrease in revenues to €87.8m.

However, the second half of 2024 saw a rebound, as revenues rose by 3.1% to €167.6m.

Lanson-BCC said the business “is determinedly pursuing its premiumisation development strategy”.

It added: “The group remains fully committed to its ambition to strengthen its position in the high-end wine segment, a key priority in its long-term strategy. This policy is essential to address the ongoing rise in grape prices and the increased costs of financing the aging of wines in cellars, which have quadrupled over the past two years.”