Champagne. Features of sparkling wine consumption in Ukraine
Champagne is a sparkling wine produced in the Champagne region of France. The name “Champagne” according to international treaties can be applied to sparkling wines produced only in the region of the same name in France and meeting the established standards. This is why sparkling wine is often written on champagne bottles and the word “champagne” is used as the name of the product itself, e.g. “Soviet Champagne”.
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Champagne is usually made from three grape varieties: the white Chardonnay and two red varieties, Pinot Noir and Pinot Meunier.
According to the amount of sugar, champagne is of the following types:
- doux (sweet or what we used to call semi-sweet, sugar content over 50 g/l);
- demi-sec (semi-dry, 33-55 g/l);
- sec (dry, 17-35 g/l);
- extra sec or extra-dry (extra-dry, 12-20 g/l);
- brut (almost completely dry, less than 15 g/l);
- extra brut (excessively dry, less than 6 g/l).
In the world the most popular champagne is brut, but in the former Soviet Union people prefer semi-sweet drink.
Champagne is associated with holidays and has a pronounced seasonality of consumption. The peak of sales and consumption falls on New Year’s Eve and New Year’s holidays. As a rule, champagne is also bought for birthdays, Eighth of March and various celebrations.
The main consumers of champagne are women aged 25 to 54 (41.8% of all sparkling wine consumers according to Comcon Ukraine research).
Champagne is produced by the classic (bottle) method and the acratophorous (tank) method. For most consumers, the method of production is not so important when buying. In Ukraine, the Artemovsk Winery and the Novy Svet Champagne Plant produce champagne using the bottle method. The technologies are different, the cost of the final product differs only by 30-35% (the bottle method is more expensive), but the producers of champagne in the traditional way for their products ask for a price twice the cost of production. Since not everyone distinguishes the difference in production, many Ukrainians are ready to pay more money “for a legend”.
Production, export, import of champagne in Ukraine
Over the last five years, champagne production in Ukraine has both increased and decreased. Despite the crisis year of 2008, in 2009 production increased by 0.2 mln. dal to 4.2 mln. dal and remained at this level in 2010. However, in 2011 and in 2012 there was a decline in production rates and already in 2012 it decreased by almost 11% compared to 2011. Champagne production dynamics for 2008-2012:
Champagne exports have also been declining recently. The main exporter that manages to hold its positions is Artemovsk Champagne Winery. Champagne is exported most of all to Russia, Germany
Ukrainian champagne competes abroad only on price, but the quality of domestic sparkling wine is lower than that of other importers. This is due to the fact that the raw materials used for champagne production in Ukraine are of low quality. Some producers buy raw materials abroad, and since the currency exchange rate does not stand still, the final price of the products grows annually.
Most products in Ukraine are domestically produced, but there is still a small share of imported products. Champagne is imported mainly from Moldova (Cricova brand). Most of the imported champagne brands are sold in the restaurant chain.
The most popular imported brands:
Cricova,Moet & Chandon, Deutz, Veuve Clicquot, Prosseco, Martini Asti and others.
Champagne producers in Ukraine
In Ukraine the main producers of sparkling wines are:
- Artemovsk Winery (Artemovsk Winery);
- Kiev Plant of Champagne Wines;
- Odessawinprom;
- Kharkov plant of champagne wines;
- Zolotaya Balka;
- Sevastopol Winery;
- Odessa champagne factory;
- Novyi Svet Champagne Plant.
Artemovsk Winery is one of the largest champagne producers in Ukraine, located in Donetsk region. When producing sparkling wine, the company uses the traditional bottle method. The production capacity of the company is 25 million bottles of champagne per year. In addition, all products meet international quality standards.
Artemivsk Winery annually participates in international competitions and exhibitions and repeatedly receives awards. Thus, the plant has 13 Grand Prix medals, 75 gold, 44 silver and 7 bronze medals in its arsenal.
In order to attract more consumers, the company organizes excursions around the plant with tasting of its own products (a total of 3 possible excursion routes). In June 2013, Artemovsk Winery was the first in Ukraine to open a champagne bar in a shopping center in Donetsk, where you can buy wine at an affordable retail price, not the price usually indicated in restaurant wine lists. Artemovsk Vaineri positions its Charte Bar as a place for stylish people in the big city.
On the Ukrainian market, Artemovsk Winery champagne is represented by three trademarks: Artemovskoye, Krym and Krimart. However, this is not a complete list of the company’s trademarks.
Artemovsk Winery brand portfolio:
- KRIMART (white brut, white extra-brut, red brut, white Muscat brut, pink brut);
- Charte Komilfo (white semi-sweet, rose semi-sweet, red semi-sweet, nutmeg white semi-sweet, nutmeg rose semi-sweet);
- Crimea (white brut, red semi-sweet, white semi-dry);
- Artemovskoye (white brut, red semi-sweet, pink semi-dry, white semi-dry, muscat semi-dry, white semi-sweet, aged white semi-sweet). also available in 0.2 liter bottles;
- Soloking (white aged brut, pink aged semi-dry, white aged semi-dry, red aged semi-sweet). Also available in 1.5 liter bottles.
Artemovsk Winery exports its products. Exports are mainly to Russia and Germany, with deliveries to Moldova planned for 2013. However, earlier the company also supplied sparkling wines to the markets of Great Britain, Azerbaijan, Lithuania, Belgium, Latvia, Armenia and other countries. Despite the fact that the number of foreign markets has decreased, the export volumes are growing annually. The company bought vineyards in Crimea in order to grow top quality grapes. Better quality raw materials will allow the company to produce higher quality products and resume its competitive position in foreign markets.
The Kiev Champagne Winery has been operating in Ukraine for more than half a century. The enterprise is equipped with the latest equipment, which allows it to maintain a good position in the market. In 2007 Kyiv Champ agne Winery became a part of Henkell&Co group (it is the only non-French corporation that has its own production in the Champagne province). The Kiev Winery constantly takes part in international contests and exhibitions and receives the highest awards. The products of the Kiev plant meet the standards of international quality.
A line of sparkling wine from the Kiev Champagne Winery:
- traditional wines (white semi-sweet “Soviet Champagne”, white “Muscat Sparkling”. pink “Muscat Sparkling”);
- Our Kiev (red semi-sweet, white sweet, white semi-sweet, white muscat white);
- Ukrainian (white sweet, white semi-sweet, pink sweet);
- Soviet Premium (white extrabrut, white brut, white semi-sweet, white sweet);
- Krymgrad (pink muscat semi-sweet, red semi-sweet, white semi-sweet);
- Cuvée №1 (white brut, white semi-sweet). Also available in 0.375 and 1.5 liter bottles;
- HENKELL (Trocken white dry, white brut, blanc de blancs white dry);
- FŰRST VON METTERNICH (pink dry, white dry);
- SÖHNLEIN BRILLANT (non-alcoholic).
Trade marks of Kyiv ZSV are known both in Ukraine and abroad. The lines of sparkling wine are constantly updated with new compositions. The products are exported to Russia, Germany, England, Switzerland, Spain and Estonia. The company buys raw materials for champagne production in Crimea and Moldova.
Odessavinprom produces sparkling wine under the trademark “French Boulevard”. The company uses only high quality raw materials to manufacture its products. The equipment at the plant is automated, and the entire production process is controlled by a unified control system.
The line of items of the French Boulevard brand includes:
- Special edition (white semi-sweet, white semi-dry, white brut, red semi-sweet, pink semi-dry, white muscat);
- Grande cuvee (white brut, white dry, white semi-dry, white semi-sweet, red semi-sweet, rose semi-sweet, white Muscat semi-sweet, sweet white, Golden Muscat sweet white, For lovers white semi-sweet, happy birthday white semi-sweet).
The enterprise “Odessavinprom” has a wine boutique, where you can come for tasting of table and sparkling wine, brandy and cognac accompanied by a light snack.
Kharkov Champagne Winery is one of the largest enterprises in Ukraine engaged in the production of table and sparkling wines. The production capacity of the enterprise is 25 mln bottles per year. The plant has repeatedly participated and won at Ukrainian and foreign competitions (the company has more than 150 medals in its arsenal). Kharkov ZSV has a wide range of sparkling wines, including: “Soviet Champagne”, “Amber”, “Golden Age”, “Triumphalnoe”, “Krymstar”, “Stary Kharkov”, “Kharkov Zolotoe”, “Zoryane” and others.
Since there is a huge choice of champagne on the market and consumers have the opportunity to choose, producers began to think about how to attract new customers and how to make sales of sparkling drink regular throughout the year.
Most manufacturers use indirect sales as a sales system. There is also a growing focus on promoting products in cities with millions of inhabitants with the help of distributors.
At least a little bit to smooth out seasonal fluctuations in sales, manufacturers are able to use sensible distribution and refusal from disorderly wholesale sales. Even retail chains have abandoned the principle of widespread abundance and switched to the principle of reasonable sufficiency. As it turned out, it makes no sense to keep the entire range of products of all manufacturers. It is enough to choose a few proven enterprises and cooperate with them.
Taking into account this approach, producers themselves began to seek to cooperate with proven distribution partners and build long-term partnerships with them. For example, the Novy Svet Champagne Wine Factory cooperates with 5 distributors (three distributors distribute sparkling wines in Ukraine, and two – in Europe and CIS countries).
In addition, domestic producers began to actively cooperate with the HoReCa segment (the hospitality and catering industry), whose enterprises do not strive for an abundance of assortment in the wine list and are limited to a few producers. But the main criterion for selecting these producers is, as a rule, the readiness of this producer to pay for the “presence” in the wine list of this or that restaurant, cafe, etc., and the amount of money he is willing to pay.
As for marketing communicationsAs for marketing communications, domestic producers practically do not resort to advertising their products. Instead, they organize various PR-actions: they hold press conferences for the media, organize tours of the plant with product tasting and others. The Ukrainian market, despite all the efforts of manufacturers, is still at the stage of active development. Therefore, constant advertising and marketing support is required.
Today, sparkling wine producers prefer to operate as before, minimizing their costs for creating new brands and promoting existing ones.
Unique design of goods allows not only to stand out among other goods, it usually remains in the memory of consumers for a long time, which helps to increase sales. Branding agency KOLORO are professionals in the field of bottle shape design and label design. Companies that cooperated with us and ordered us to develop a new product design were able to increase their sales and achieve success in the market.
In addition, KOLORO is engaged in the production of the first run of packages and label printing. And for those who ordered design development, this service will be at a discount!
If necessary, we will also find you partners and suppliers, conduct marketing and desk research (collection and processing of information), and register a trademark.
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