On fizzing form

Can champagne and sparkling wine add a profitable sparkle to pubs and restaurants’ drinks repertoire? John Porter finds out.

Bubbly is not just for the City boys, but the media often uses the sales figures for champagne in London's upmarket wine bars as a barometer for the health of the UK economy. Sadly, the majority of pubs and restaurants can't rely on bonus waving bankers for trade.

Generally champagne sales showed an improvement in 2010, with 35.5 million bottles shipped last year. That's still down from a peak of close to 40 million in 2007, the last year of the 'boom', but, says Andrew Hawes, chairman of the UK Champagne Agents' Association (UKCGA), "rising champagne sales are a good indicator of economic recovery".

In the wider market, figures from UKCGA show that sparkling wine is currently the best performing category in the on trade, ahead of beer and cider, with a volume growth of 7.7% last year.

Kevin Berkins, owner of The Fence Gate Inn, near Burnley, and The Eagle at Barrow, near Clitheroe, proves that geography is no obstacle to selling the sparkling stuff. "We're not a posh wine bar; we run pubs," he says.

Both pubs combine lively bar areas, more laid back brasserie style restaurants, and busy function businesses, and both have a substantial champagne and sparkling wine trade.

Berkins has a long established relationship with champagne house Louis Roederer, with The Fence Gate Inn having been named an ambassador business for the brand. The secret, he says, is to keep prices reasonable, which means putting a cash margin rather than a percentage on champagne.

"I've occasionally had restaurant managers here say to me that we don't make enough on champagne, but as I always say to them, you don't bank percentages, you bank cash," he explains.

With an entry price of £42.50 for a bottle of champagne, as well as a thriving by-the glass trade, he says: "We order from Louis Roederer by the pallet, and once you start doing those kind of volumes, you can start to negotiate deals."

The Fence Gate also has Italian sparkling prosecco on tap, served from kegs under the bar by the glass, as well as in carafes by the half litre and litre. "We use a specialist dispense system that no one else was using outside London. On a warm day, we get the 'ladies who lunch' coming in and sharing a carafe. Our prosecco is lighter than most, so it's very quaffable," says Berkins.

On the function side of the business, he has also introduced a 'prosecco reception' option as an alternative to champagne this year. "Money is tight, and in this market you have to offer customers a range of choices to suit all budgets," he says.

Neil Bruce, wine director at wholesaler WaverleyTBS, agrees. "Drinkers might not be going out as much as they used to, but when they do they are looking for a value for money, 'me time' experience. So there are times when sparkling wine or champagne does fit the bill, and it's another profitable opportunity in your wine portfolio."

Alongside champagne, Italian prosecco, Cuvee de L'Ecusson from Luxembourg and cava from Spain are all acceptable alternatives and around a quarter of the price, says Bruce. The boom in sales of rosé wine means "that if it's pink and bubbly it has twice the appeal."

Making sparkling wines more accessible to customers who might have concerns about price is key, says Bruce. "List your range as 'Bubbles' or 'Fizz'. If you create a more relaxed, everyday feel around this end of your list it will help to sell more. It appeals to the 'because you're worth it' segment of the market who work hard and want to treat themselves."

Bruce also reinforces the message that champagne should be priced to sell. "Look at the current cash margin you are making on wine and add a bit more. Champagne should be your best cash margin earner but not so much that it sits in your cellar tying up costs in stock. It's far better to have good throughput and a reputation for great champagne than well stocked, dusty shelves."

Promotions will ensure that customers know what's on offer. Bruce suggests: "Fill a large bucket of ice and display champagne or sparkling wine on the bar; serve complimentary strawberries with every glass or even have a ticketed 'fizz' tasting night to drive sampling."

This approach has been adopted at The White Bear in Masham, North Yorkshire, which runs a special wine promotion displayed on tent cards for 'fizz' or sparkling rosé from just £3.50 by the glass, with the bottles packed into ice in a large bucket and displayed on the bar.

Giving staff the confidence to recommend and serve champagne and sparkling wine is a proven way to drive increased sales.  An Reuby, customer development director at Pernod Ricard UK, which supplies brands including Jacob's Creek and Gran Campo Viejo says: "Staff and bartenders can play a vital role in promoting a pub's sparkling wine offer by making decisions less daunting for consumers, so pubs should equip them with some basic knowledge about the wine styles they sell."

Reuby says helpful yet non-intrusive staff, who are knowledgeable on which sparkling wine to pair with dishes on the menu, give consumers an overall better experience and a good reason to come back. He recommends giving staff a half hour sparkling wine tasting session to introduce new wine and/or update their knowledge on new vintages or changes to the range.

He also suggests that staff are given stories about the sparkling wines or snapshots of information rather than lengthy pages of technical tasting notes, and to encourage customers to focus on their own experience of tasting wine.

ViVAS, the joint venture between 3663 and Bibendum Wine, has put together a package of support and tips for customers called Easy Cellar, which includes on pricing and promotion as well as upselling. Henry John, marketing manager at ViVAS, says: "When it comes to an occasion drink like champagne or sparkling wine, care needs to be taken to achieve the perfect serve."

Selling champagne by the glass is popular with customers who don't want – or can't afford – a full bottle, however it is a potential headache for pubs that don't want to be left with half full bottles of flat, unsellable champagne. Single serve bottles offered by an increasing number of brands are an option.

If serving from a full size bottle, John advises: "If you are serving it by the glass, make sure you reseal champagne or sparkling wine bottles promptly with a stopper and return it to the fridge."

But if champagne is likely to be back in the fridge for some time equipment such as the Perlage champagne preservation system from Cream Supplies offers peace of mind. The patented system works by removing oxygen from the headspace of an opened bottle and replacing it with carbon dioxide.

This has the effect of replicating the pressure that existed before the bottle was opened so that not only is the fizz preserved, but oxidisation is also halted.

The suppliers say the process will keep opened champagne in perfect condition for several weeks.