Champagne Figures Highlight Weak Emerging Market Exposure

Two champagne producers have posted somewhat disappointing results for their latest financial years. For the 12 months to the end of December 2011 Lanson-BCC registered a 1.6% increase in revenues but a 7.7% decline in volumes. For the same period Vranken-Pommery Monopole registered a 6.8% fall in sales, to EUR339.6mn. These figures suggest that overall demand in the sector was muted during the year. Given the extreme weakness of 2009 (see chart), this is a disappointing result and suggests that the industry remains tied to the performance of developed markets and has not yet developed widespread emerging market

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