Champagne sparkles less
National brand champagne is sold in supermarkets at €38 per 75 cl bottle on average, i.e. €1 more than 1 year ago. The increase is modest, but it follows two years of record inflation. Thus, prices in 2024 are €7 higher than those in 2021, which is equivalent to an increase of more than 22%!
Concerning private label brands (MDD), the average price of a bottle of champagne reached €24, the same price as in December 2023, but €6 more than 3 years ago (i.e. +33%).
However, sales have been sluggish for several years. Large houses are having more difficulty selling their bottles, including for export, in a tense political and economic context. We could therefore have expected a moderation, or even a reduction in prices to sell off stocks. But the sector has played on supply, reducing the overall volume marketable under the name “champagne”. Concerns about grape resources, linked to the negative impact of global warming on the yield of the vines (either by excess heat or, as this year, by excess rain), also weighed. Distributors could reduce their margins, which are significant on this product, but is it in their interest to do so, when champagne is a must for the end-of-year celebrations, like salmon, foie gras and log?
New rise in chocolate prices
Chocolates show rising prices for the third year in a row. 500 g boxes of national brands retail for €15 on average. As for those under private label, the price is lower, with an average of €12 for 500 g. Prices are up 33% compared to December 2021. The surge in chocolate prices that the surge in world cocoa prices seemed to promise us is not yet on the agenda.
However, this increase seems difficult to avoid in the medium term. The sector is facing a collapse in production, due to climate change, with intense rains which clog the soil and bring a host of diseases such as fungal attacks. In addition, the plantations are old, and the trees are reaching the end of their productive life, which will require colossal investments in planting young trees, which are not immediately productive. The future European regulation to combat deforestation also forces operators to invest in traceability tools. Finally, this is without counting on speculation: if the price has indeed soared in London and on other stock exchanges, the prices paid to small producers have not benefited from the same surge.
