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PARIS - France's Champagne region probably sold more than 320 million bottles of the bubbly wine last year thanks to strong demand from abroad, the chairman of the association of champagne houses said today.
Champagne association chairman Yves Benard told Reuters in an interview that while final figures would not be available until February "it's clear that champagne volumes grew more in 2006 than 2005 and that growth in value was higher still."
In 2005, sales were just under 307 million bottles.
The industry association represents 200 champagne houses that sell around 220 million bottles of champagne worth three billion euros. Its members include LVMH Moet Hennessy Louis Vuitton, owner of Veuve Cliquot, Krug and Moet & Chandon; Boizel-Chanoine, owner of Lanson, and Pernod Ricard, owner of Mumm.
Benard said the domestic French market, which accounts for roughly half of the region's sales, was probably "fairly flat".
"All the growth came from abroad and other European countries," Benard said, citing healthy growth in the United States and Asia.
Volumes in China, India and Russia were up 15 to 20 per cent -- although together the three markets still represented less than 1 per cent of total champagne sales.
Exports accounted for 50 per cent of champagne sold in terms of value and 45 per cent in terms of volume, he estimated.
Benard predicted 2007 volumes should be "slightly above" those of 2006 and could be limited by stocks.
The 2006 grape harvest was the equivalent of around 260 million bottles and will not be marketed until 2009, while a portion of 2004 and 2005 harvests was being held in reserve.
Other champagne houses have previously predicted that a decision will have to be taken with the next two or three years on enlarging the region in order to boost grape production.
"The positive aspect is that we're starting the year with no stocks at our customers so demand should remain sustained at the start of 2007," Benard said.
- REUTERS
