Sparkling wines are going from strength to strength and as a Hospitality or Catering operator, if you want to maximise the value contribution to your wine takings, then keeping tabs on the sector is a must.
The sparkling wines sector growth opportunity seems to know no bounds. A study released yesterday by long time wine industry exhibition, Vinexpo, and International Wine and Spirit Research (IWSR) predicting global growth of 8.6% in the next 3 years.
Most of this growth is set to come from Prosecco. Which leaves a couple of questions about Champagne and English sparkling wine – where do they fit in?
The Prosecco market is predicted to continue its stellar growth estimated at nearly 14% by 2020, on the international stage even though the bulk of sparkling wine sales are designated as ‘other’. This category, which presumably includes the likes of the Sekt market in Germany that is huge, forming over 60% of the global sparkling market. The Vinexpo report states that Prosecco is taking over from Rose as the entry wine drink for the younger (adult) market. This insight leads us neatly into what is sparkling wine for?
For most people Prosecco gives us a celebration every week. Anecdotally I read and hear that quite a number of consumers are saying they now prefer Prosecco to Champagne and other sparkling options. There is definitely a different style to Prosecco, a softer, more generous, easier going less acidic style, which the general market is clearly very comfortable with. This presents a stylistic challenge to the other sparkling wines, Cava, Champagne and English wine.
Champagne is still predicted to show some growth of 1% on the international scene. It seems that it is the discounted market (e.g. A. N. Other brand Champagne at £10 from the supermarket) is being eroded in favour of Prosecco as opposed to the premium and prestige markets, and that is especially so in the U.K. This is a sector of the market that Champenois have always struggled with. It is margin dilutive and offends the prestige image of the sector being distributed through supermarkets. However there is the issue of becoming detached – too prestige – therefore disconnected from the mainstream consumer. Removing rungs from the ladder up which they might climb, when affordability becomes less of an issue is not a smart move either.
So what of English sparkling wine? It is now sold in over 30 countries and I have heard on the grapevine and through other media that deals have been done in the USA for distribution. This might sound easy but the market there is very differently structured, made up of 52 different legally defined markets and tiered as well. Aside from that, there are a reported 30 new wineries in England and the prospect raised by the Wine and Spirit Trade Association that wine could be made in Scotland within 100 years.
Back to today, there are some excellent examples of English (not British) sparkling and still wines around. BA have just announced that they are pouring Bolney Estates in First Class and the recent Vineyards of Hampshire tasting showed 7 excellent wineries most of whom are beginning to export. BREXIT seems to have merely added extra zeal to their export efforts.
The tendency that English sparkling wines have is to make some alignment or comparison to Champagne. That seems to be their model and most of the justification of the price, which aligns itself more to that Sparkling wine region of Northern France. What if the more acidic style of sparkling wine falls out of favour?
Remember Liebfraumilch, Hock, and Piesporter etc from Germany? Styles of wine that despite two world wars had become popular again in the 70’s, 80’ and 90’s having been popularised in Victorian times by the Monarch herself. They are styles, which have become unpopular, with most consumers declaring them too sweet. It is an ironic fact that despite the British populations’ well reported love of sugar these wines are often declared to have too much ‘zucker’ and have fallen out of favour over the last 20 years. The point being that whilst Champagne has had an enduring style, should the consumer palate become more attuned to the less dry, softer style of Prosecco, would Champagne producers change their style of production to suit? In turn where does that leave the Champagne-like English sparkling wines?
In the end, all other things being equal, English consumers would love to choose the English Sparkling wine rather than the foreign alternative. However not all is equal and it is to be considered that this charming development of producing wines in England should take note of the Prosecco success and create its own niche rather than relying too heavily on Champagne? There is plenty to go at. The English sparkling wine sector just about secures a mention from the French run Vinexpo (no chip there then!) with the CEO commenting that the ‘big buzz remains limited by availability’.
So for hospitality and catering operators, Champagne will retain its prestigious image. For those consumers with the wherewithal, I am sure that considering its long history and survival of many ups and downs, it will also retain its premium position.
Ignore Prosecco at your peril, it is the drink of the moment and looks set to continue, however be innovative seek out brands and positioning that define your establishment.
And let’s hear it for English sparkling wines. If you are managing an outlet, you should be able to put an Anglo made fizz on the list for the same or more likely a little less, than Champagne, more than Prosecco, and gain more sales, profit and maybe more importantly reputation. The more local the better, if you are in Hampshire then list Hampshire fizz, if you are in Durham then maybe you have a few years to wait for production of your local fizz, from grapes at any rate!
Alistair Morrell
Hospitality & Catering News, Wine & Drinks Editor