Veuve Clicquot, the Champagne maker that’s part of luxury-goods powerhouse LVMH, is exploring new markets in Africa as demand for premium products rises on the continent.
The Champagne maker is considering expanding in East Africa or going west to Ghana as it looks to boost its presence on the continent, according to Chief Executive Officer Jean-Marc Gallot. The drinks maker, controlled by French tycoon Bernard Arnault, already sells its products in South Africa, Nigeria, and in Francophone countries, Tunisia, Morocco and Algeria.
South Africa is the biggest market for Champagne exports on the continent, representing the 22nd largest destination for such exports in 2022, according to Comite Champagne. For Veuve Clicquot, a market share of 90% has allowed the country to sit among its top 10 markets globally. The company has benefited from the “the love for big brands” in South Africa, Gallot said, adding that the company will focus on retaining its market leader position there, as it expands on the continent.
“By far, South Africa is the number one market for Champagne for us,” Gallot said in an interview with Bloomberg TV’s Jennifer Zabasajja in Johannesburg. “We have to go a little more to Kenya, we might even consider Tanzania and maybe some other countries.”
To keep its market share in South Africa, Veuve Clicquot will consider pausing or slowing down the significant price increases it has implemented over the last two years, Gallot said. LVMH has already indicated that it suffered some customer backlash after applying price hikes on its Hennessy Cognac.
“I believe we will be certainly more reasonable or less ambitious in the next price increase in the future,” the CEO said.
Africa has the youngest population in the world, with about two-thirds of sub-Saharan Africa under the age of 30.
--With assistance from Angelina Rascouet.
