According to sales figures released this week, Majestic Wine’s profits fell by more than 50% in the last year. This has been partly attributed to a drop in its Champagne sales, which were down by 24% last year, although figures indicate a 20% increase in sales of Prosecco and sparkling wines, particularly from New Zealand.

Also blamed for the slump in profits is the poor performance of its French business, which is suffering the effects of the strong euro, and the fact that many French products are now available in UK supermarkets, thus discouraging UK consumers from travelling to France to buy wine. Majestic’s chief executive Steve Lewis remains confident however, citing VAT increases in the UK next year as a reason for customers to return to the company’s stores in Northern France.

The acquisition of the fine wine merchant Lay & Wheeler in February is also seen as a positive move and according to Lewis is set to achieve “good growth”.

Majestic Wine continues its trial of six-bottle cases in 7 stores across the UK, a move designed to promote sales .

[ Source: Decanter.com ]