Champagne sales have suffered massively over the last two years, and the decline can be traced back to the Lehman Brothers collapse, Bloomberg has discovered.Champagne sales nosedived in 2008 and 2009, when conspicuous consumption became something that was almost socially deviant.
People everywhere – bankers especially – toned down their extravagant behaviour. And it looks like they chose to drink beer or wine instead of champagne.
The fall in sales “can pretty much be traced back to Lehman… At the back end of 2008, if you were going to be drinking a premium brand of champagne you’d better have been doing it on your own in the garden shed.”
And as a result, champagne makers were forced to slash prices in 2009, but in 2010, after two years of social exile, the luxury brands are refusing to continue discounting their product.
So thanks to two stellar years and the return of spending, this year, luxury brands, and the premium labels within brands, are going to be as expensive as they’ve ever been.
Another reason to be thankful for the bailout!
(We’ll see for ourselves tonight how extensive this champagne re-welcoming really is…)