The downturn has created a buyers' market for sparkling wine
Splash out
KEY POINTS:
Mid-ranged champagnes have seldom been cheaper than they are this year as retailers work hard to move an abundance of stock before the end of the Christmas season.
So, the fizz has gone out of the economy, and there's not as much pop about town these days.
But there will still be plenty of bubbly on the Christmas table this year.
Whether it's the $300 bottle of finest champagne, or the $8 bottle of sparking wine, New Zealanders are taking advantage of the wine wars to stock up - downturn be damned.
Canvas wine writer John Hawkesby says two patterns have emerged.
"There's that spend-and-be-damned attitude, that says, 'I've never drunk a bottle of Krug, I'm so far in debt now, what's an extra hundred bucks? Let me try it before I die'," said Hawkesby.
Prudence is driving the other pattern.
"At the other end people are going, 'Yeah, actually, I don't think I want to pay $80 or $90 for a bottle of champagne for Christmas Day. Let's look at something that is methode traditionelle from New Zealand. And there are some excellent buys which would give some French champagne a huge run for its money."
Hawkesby's advice? "I'm anticipating that at the middle to lower end, it will probably never be cheaper."
So, how is the market shaping up?
Cheap and cheerful
New World, which has had its Christmas wine special running this week, has registered sales at a similar level to last year, said Foodstuffs' general manager of retail sales Murray Jordan. "I think people are buying very judiciously in terms of their selection," he said. "They're looking for value. Our prices are a touch better or similar to last year."
Rivals Progressive Enterprises, which operates Foodtown, Woolworths and Countdown supermarkets, has noticed people are looking for bargains too, but category manager Steve Sexton would like to see better.
"In reality manufacturers have the biggest effect on discounts. And even though specials have been well received by customers... we don't feel that manufacturers have been as aggressive as they could be, especially in the sparkling category this year."
The only serious player in the range is Pernod Ricard, which has a 75 per cent share of the grocery sparkling market under brands such as Lindauer, Jacobs Creek and Deutz.
The company's chief winemaker, Jeff Clarke, said he believed New Zealand sparkling wine drinkers got value for money, especially out of Lindauer and Deutz.
"We're selling Lindauer for 8.99 ($24.75) [in Britain] and, in the last five years, the price has come down about 25 per cent," said Mr Clarke.
"It's terrific value and we have worked hard to get it to that price."
Lindauer continued to be the most popular choice, and the company's sales were holding up.
Mid-range
Hawkesby's assessment that this is where the bargains are to be found is backed up by Jeff Poole, director of the Fine Wine Delivery Company.
"This year would be the most aggressive champagne pricing we've seen," said Mr Poole.
Retailers and importers were keen to move stock.
"That's got to do with the current economic crisis. Champagne is a high ticket item and [importers] are holding plenty of stock and they need to move it through. They can't afford to be sitting on champagne in January."
Mr Poole said there were good bargains to be had among quality New Zealand methode traditionelle drops. Drinkers would be hard-pressed to notice the difference between a bubbly such as Number 1 Cuvee (selling for $29.95) and a $60 bottle of champagne, he said.
Top class
What recession? Liz Wheadon, of Glengarry, says the price of top-class champagnes have increased significantly - but demand is still out-stripping supply.
"In terms of premium champagne, vintage champagne, we're seeing strong growth," said Wheadon.
Recently, Glengarrys received an allocation of 1998 Krug Clos du Mesnil. The price on the previous batch from the suppliers was about $700 a bottle - the recent arrivals have a price tag of $1600.
Yet that was not putting anyone off. "Customers are fighting over it," she said.
Hawkesby said that the premium champagne houses would not necessarily be noticing the worldwide crunch. "The prices have got astronomical but people are still buying. [The champagne] houses can sit on it for a long time and they know it will move at some stage."