Market observations suggest growth in the sparkling wine category. However, the wine sales and consumption crisis hasn't spared the bubbly sector. Champagne houses, in particular, are reporting a challenging 2024, with global sales of premium sparkling wines declining by 9% to around 269m bottles—down from 299m bottles in 2023, which was already a decrease from the previous year.
Moët Hennessy (LVMH)
Luxury conglomerate LVMH and its wine and spirits division, Moët Hennessy, have navigated a turbulent year. Unfortunately, the trend line for Champagne and wine sales points downward. After generating €3.46bn in the previous year, the company reported €3.18bn (-8%) in revenue for fiscal year 2024. However, the figures indicate a second-half recovery. While the division recorded a 12% decline between January and June, the decline from July to December was only 5%, with a mere 3% drop in the third quarter.
Moët Hennessy saw Champagne sales volume decrease by 10m bottles, a 15% drop. Nevertheless, the company remains at the top of the sparkling wine producer rankings and is positioning itself for the future. In October 2024, it acquired a minority stake in French Bloom, a start-up producing premium non-alcoholic sparkling wines, responding to evolving consumer preferences.
The company is also entering 2025 with a new Director General. Jean-Jacques Guiony, a member of the LVMH Executive Committee, was appointed President and CEO of Moët Hennessy, effective February 1, 2025. Alexandre Arnault, son of LVMH CEO and majority shareholder Bernard Arnault, joins as Deputy CEO, bringing LVMH's wine and spirits business into sharper focus for the owning family. This follows the division's recent steepest revenue decline within the group, amidst a generally weakening luxury sector.
"We are approaching 2025 with confidence, maintaining our cost management and focus on the desirability of our products," says Bernard Arnault. "Guided by our philosophy—'passion for creativity'—and our core values, the group will rely on the dynamism and talent of its teams to set the course for future success and further expand its leadership position in the luxury market."
Henkell Freixenet
Wiesbaden-based Henkell Freixenet concluded fiscal year 2023 with €1.23bn in revenue, a 4.1% increase. Dr. Andreas Brokemper, CEO, emphasizes, "We are grateful that consumers have remained loyal to us in a challenging market and competitive environment."
Key growth drivers included strong brands like Freixenet, Mionetto Prosecco, Henkell, and Fürst von Metternich, as well as successful new additions to the portfolio. Freixenet (+4%) and Mionetto (+11%) achieved sales growth by expanding their offerings, including non-alcoholic varieties and aperitifs. The ‚I Heart Wines’ brand, with a new design, contributed significantly to the positive development, achieving a sales increase of over 12%.
Despite global challenges such as rising costs and changing consumer habits, Brokemper anticipates opportunities in the evolving market for 2025 and beyond: "With our diverse portfolio of sparkling wine, wine, and spirits brands, we believe Henkell Freixenet is well-positioned for 2025. We see growth potential particularly in the Prosecco and Aperitivo categories, as well as in the non-alcoholic and Crémant segments."
Rotkäppchen-Mumm
Despite a tense market environment, Rotkäppchen-Mumm remains optimistic. The company continues to rely on its strong brands, which offer consumers guidance in an increasingly fragmented market and continue to enjoy strong trust due to their consistently high quality.
In 2023, the company recorded gross revenue of €1.27bn, including €636m from sparkling wine and €250m from wine, slightly exceeding the previous year's result of €1.24bn.
The company also announced several changes for 2025: Silvia Wiesner will assume the role of CEO in April, Markus Jauch will become COO, and Christof Queisser will leave the company. Additionally, there is a change in leadership at the Geldermann winery in Breisach, located in the Baden wine region of Germany: Déborah Ruffing Tabbone, a state-certified oenologist and Master of Wine & Champagne, succeeded cellar master Marc Gauchey on January 1, 2025.
New additions to the company's product portfolio are designed to strengthen individual brands and position them for future success. For example, the new beverages ‘Rotkäppchen Secconade’ and ‘Seccomate’ will launch in spring 2025.
Further product innovations include the design relaunch of ‘Doppio Passo Prosecco’ and the new products ‘Doppio Passo Alternativa Bianco & Sparkling’ and ‘Ritmo de la Vida Garnacha Rosado.’ ‘Geldermann Grande Réserve’ will also be relaunched, and the ‘Eckes’ and ‘Stork Club’ brands will receive a new, modern design. A particularly interesting development is the relaunch of "Chantré," a German brandy recognized with a German Design Award, and the introduction of "Chantré Crème."
Schloss Wachenheim
Schloss Wachenheim AG reports a successful 2023/24 fiscal year despite challenging market conditions. By the end of the fiscal year on June 30, 2024, the company's revenue increased by 3.7% to €441.5m, while sales volume decreased by 5.2% to 221.5m. Price increases were implemented in Germany and France due to rising wine and raw material costs, leading to sales declines.
In Central and Eastern Europe, acquisitions and positive currency effects resulted in an 11.4% increase in revenue. Overall, approximately 78% of the bottles produced were sold domestically, and just under 22% were exported. The company noted a significant trend toward non-alcoholic products, including the successful 'Schloss Wachenheim Light Live' brand, which is seeing increased demand from consumers both domestically and internationally.
For the current 2024/25 fiscal year, the company plans to continue focusing on extensive sales promotion and advertising measures to support the development of its strong brands and contribute to long-term business success.
Groupe Laurent-Perrier
Champagne Laurent-Perrier takes the fifth spot on this year's Top 10 list of sparkling wine companies. However, the Groupe is also experiencing declines, more pronounced in sales volume than revenue. While revenue decreased by 1.3% according to the latest annual report, sales volume is estimated at 12m bottles, a 25% decline. As in all sectors, customers are increasingly prioritizing quality over quantity.
This is confirmed by Sezai Ozkan, Managing Director for Germany and Switzerland: "While Cuvée Rosé is continuously gaining market share in the DACH region, Grand Siècle has made an enormous leap in importance, achieving around 2.5% market share in the prestige Champagne segment."
Laurent-Perrier anticipates that the market situation will become even more challenging by 2026. "While economic challenges and global conflicts will most likely persist, competitive intensity will increase," says Ozkan. "Due to a stagnating or even declining market, most houses have excess inventory in all categories—the result will be increased competitive pressure, which we are already facing."
In July 2024, the Champagne house launched its new assemblage, 'Héritage,' a clear commitment to the gastronomy sector: the complexity of mature, selected reserve wines at an attractive price of €150 RRP, intended to be suitable for by-the-glass service in restaurants.
Terroirs & Vignerons de Champagne
Terroirs & Vignerons de Champagne (TEVC), the cooperative group that includes Champagne Nicolas Feuillatte, Champagne Castelnau, and the two maisons de négoce from Reims, Champagne Abelé 1757 and Champagne Henriot, recorded a slight revenue decline of 4.6% in fiscal year 2023 compared to 2022, with total revenue of approximately €271m. However, the group reports a 3% increase in revenue for 2024 compared to the previous year, primarily attributed to strong performance in the French and European markets.
"Despite the unfavorable economic situation, the business results of Terroirs & Vignerons de Champagne are respectable," commented Christophe Juarez, CEO of the Terroirs & Vignerons de Champagne Group (TEVC). Nevertheless, according to Juarez, rising production costs continue to put significant pressure on margins. The final overall results of the TEVC Group will be officially confirmed at the Annual General Meeting in June 2025, as is customary.
In June 2024, TEVC acquired the French cooperative Societé Cooperative Vinicole d'Aulnois, based in Domptin in the Aisne department in the western Champagne region, continuing its expansion strategy of recent years.
Vranken-Pommery
Vranken-Pommery Monopole reported consolidated revenue of €302.9m for 2024, a 10.5% decline compared to the previous year. The group manages 2,600 hectares of owned or leased land, spread across four vineyards in Champagne, Provence, Camargue, and the Douro Valley.
According to the 2024 annual report, sales figures in the sparkling wine segment (excluding Champagne) were stable, both for Louis Pommery in England and California, and for sparkling wines produced in the Camargue. Champagne sales for the 2024 fiscal year amounted to €263.2m (-9.5% year-on-year), with 33% of revenue generated domestically and 67% from exports. Most markets declined, while the Benelux countries and Australia showed growth. North America remained stable compared to 2023.
Vranken-Pommery also reported production losses, with yields down 30% to 40% compared to the 2023 harvest, attributed to poor weather conditions in the Champagne region.
Lanson-BCC
The Lanson-BCC Group's revenue for the 2023/2024 fiscal year fell to €255.4m, a 6% decrease compared to 2022/2023. According to the group, this decline is mainly attributed to reduced shipments to the UK, Germany, and Japan, as well as stagnation in the US and Australia, markets where excess inventory persisted.
The company, which encompasses eight Champagne houses (Lanson, Chanoine Frères, Philipponnat, de Venoge, Alexandre Bonnet, Besserat de Bellefon, Boizel, and Maison Burtin), also recorded a 9.2% decrease in sales volume. "The positive effects of the improved product mix are not enough to offset the negative impact of the economic downturn in volume and the increase in inventory financing costs," says Bruno Paillard, Chairman and President of the Group. Indeed, the market is characterized by a general decline in consumption and an active destocking policy by distributors, who are also facing rising financing costs.
Nevertheless, Lanson-BCC remains committed to its premiumization strategy: "The Group's ambition to strengthen its position in the premium wines segment remains one of its top priorities." This approach is all the more crucial, according to Paillard, given the continuous increase in grape prices and the exploding costs of inventory financing.
Pernod Ricard
Pernod Ricard is a leading company in the spirits and wine industry, boasting a wide range of well-known brands such as 'Absolut Vodka,' 'Jameson Irish Whiskey,' and 'Beefeater Gin.' Founded in France in 1975, the company has evolved into a global player operating in over 160 countries. Pernod Ricard also maintains a strong presence in the international wine market, particularly through its wine brands like 'Jacob's Creek,' 'Campo Viejo,' and 'Mumm Champagne.'
In the last fiscal year 2023/24, the group recorded total revenue of €11.6bn (-4% year-on-year), with an estimated €232m attributed to Champagne. Once again, Pernod Ricard does not disclose explicit figures for its two Champagne brands, 'G. H. Mumm & Cie' and 'Perrier-Jouët,' but these can be categorized alongside various spirits brands within the "strategic international brands" division.
"In a context of economic and geopolitical uncertainty and a normalization of the spirits market after two years of exceptional post-pandemic growth, Pernod Ricard delivered solid results in the fiscal year ended June 2024. Our global reach, our agility, and our industry's most comprehensive brand portfolio, combined with our ability to understand and invest in the desires and expectations of our consumers, place us in a very strong position to meet these challenges."
Through its diversification and global reach, Pernod Ricard continues to play a central role in the international wine market and addresses the challenges of changing consumer behavior, increasingly shaped by trends toward premium products, sustainability, and innovative beverages.
Raventós Codorníu
"We are confident that 2025 will be a great year and that we will see even higher growth figures."
Unlike the previous year, the sparkling wine producer from the Cava capital, Sant Sadurni d'Anoia, has released concrete sales figures for fiscal year 2024: Raventós Codorníu generated €227m after a "stage full of challenges that put us to the test," according to a statement from Spain. The company reportedly navigated the difficulties of the global economy well, focused on the off-trade channel worldwide, and gained new customers and market share internationally. "And we continue to grow exponentially in our e-commerce channel, 15Bodegas."
Sustainability remains the guiding principle of the company, which continues to aim to be the fastest-growing sustainable wine producer in 2025. "We are confident that 2025 will be a great year and that we will see even higher growth figures," says CEO Sergio Fuster.
