The champagne and sparkling wine market is waiting to be shaken up

Ever since the recession period started volume sales in the champagne and sparkling wine market have been lowering. Last year the decline was 9 percent in terms of volume and about 1-2 percent in value – the market leader Törley Pezsgőpincészet informed our magazine. This year’s numbers seem to be a bit more promising. According to György Kovács, managing director of Törley Pezsgőpincészet Kft. in the first nine months of 2013 value sales were up 0.4 percent from the level of the same period a year earlier, while volume sales fell 5.4 percent – this is also how Törley’s sales developed in the examined period. Miklós Keresztény, brand manager with Heinemann Testvérek Kft. told our magazine that the increase in excise duty was the smallest for sparkling wines, so prices in 2012 weren’t greatly influenced by it. As importers, the company suffered more from the development of the forint/euro exchange rate. Andrea Wlasitsch, economic director of Garamvári Wineyard added that because there is a standard excise duty increase in the sparkling wine market, in the case of higher category products made using traditional technology the price increase was hardly recognisable. Mr Kovács told that sales in November-December represent more than 40 percent of annual turnover; the second strongest period is the summer. However, the dominance of the end-of-year season seems to be fading. Ms Wlasitsch’s experience is that in Horeca and in households there is demand for sparkling wine around the year and sales increase steadily in 7-8 months of the year. Sweet varieties are the most popular in Hungary, having dominated 70 percent of the market in both value and volume in the last three Christmas/New Year’s Eve period. Nielsen research revealed that the popularity of dry and semi-dry sparkling wines’ is about the same. Sales are increasingly concentrated, with hypermarkets playing a major role and supermarkets and discounters also being important in volume sales. Róbert Fórián Szabó, marketing director of Royalsekt Zrt. told Trade magazin that in the private label segment – where his company is market leader with a 95-percent share – they managed to get rid of poor quality imported sparkling wines. In 2013 the company’s branded products became more widely available than before. At the end of the year Royalsekt will give big marketing support to its Szent István brand with a prize draw, where the main prize is a BMW. Törley Charmant Doux is still Hungary’s most popular sparkling wine and in the dry category Törley Gála Sec is people’s favourite. 2013 is the year of innovation for Törley: the company created the Törley wine family, this year customers have the opportunity to try Chardonnay, Pinot Noir Rosé, and aromatic Muscat Ottonel varieties. The company also came out with a new sparkling wine called Törley Aérien, which has a 5.5-percent abv alcohol level and a sweet, light and fruity taste; the white and rosé versions appeared in shops in September. The Hungaria sparkling wine line treats customers to limited edition products, for instance Hungaria 21 Green Veltliner Extra Dry. Under the BB brand Törley put Frizz on the market this year, a frizzante (in sweet and dry version) that instantly became very popular in the market. Heinemann Testvérek Kft. is the distributor of ZONIN prosecco, CODORNIU cava and LOUIS ROEDERER champagne in Hungary. They keep searching for novelties and special products, for instance the company introduced the MATEUS and GAZELA sparkling wines at the Buda Castle wine festival with great success. Both brands’ products are available in dry and sweet version. Sales of Garamvári Wineyard’s sparkling wines increased by two-digit numbers last year and this year as well. The company was glad to see how customers’ interest turned form sweet and semi-sweet sparkling wines to their extra dry and extra brut products. Their most popular sparkling wines are VINCENT extra dry and Prestige Brut, but Sentimental Sweet, Evolution Rose and Blanc Fleur are also liked by many. Two new products offered by the company: Hungaricum gold medal winner Tokaji Furmint Brut and a Pinot Noir, Pinot Blanc and Chardonnay cuvee called Optimum Brut. n