How to steer the performance of a champagne house in an uncertain market?
Steering margins, volumes, and forecasts in a transforming sector
The champagne market is undergoing a major transformation, making pricing, volume, and allocation decisions more complex. Faced with this uncertainty, performance no longer depends on the market but on the ability to steer. This article explores how to structure steering to transform data into decisions.
The champagne market has changed profoundly The champagne sector has entered a transformation phase. Volumes are slowing down, margins are under pressure, and the environment is becoming more uncertain. At the same time, the decisions to be made are increasingly complex: prices, volumes, allocations, markets. In this context: Performance no longer depends solely on the market. It depends on the ability to manage. Growing complexity in decisions Today, managing a champagne house consists of constantly making trade-offs: Where to sell? At what price? With what margin? And with what stock allocation? These trade-offs are no longer occasional. They have become daily... and strategic. 🍾 Export, pricing and margins: an equation that has become critical The champagne market today is marked by a structural imbalance. On one side: a declining French market volumes under pressure On the other: a heavy reliance on exports rising costs, particularly for grapes On average, houses export more than 60% of their production. [ fr.linkedin.com ] But this positioning comes with a major constraint: a large portion of grape supplies is purchased externally, with costs trending upwards. In this context, the equation becomes delicate. To preserve margins, prices would need to be increased. But in practice, this increase is now reaching its limits. Competition from other sparkling wines, such as prosecco or crémant, limits the possibilities for increases. Result: houses find themselves facing a dilemma: margin compression or loss of volumes Operational translation In this context, decisions become strategic and permanent: trade-off between volumes and margins fine-tuned price management stock allocation between markets prioritization of distribution channels What was once an annual exercise becomes continuous management. Management that is still often fragmented In many organizations, management still relies on: multiple Excel files scattered data poorly structured planning processes Direct consequences: a partial view of performance late decisions trade-offs that are often reactive rather than proactive In an uncertain environment, these limits become critical. The real challenge: structuring management What we observe today in the sector is not a lack of data. It is a lack of structure. Companies have plenty of information, but they struggle to: consolidate it interpret it exploit it to anticipate (simulate and decide) The issue is therefore no longer the tool. It is the ability to manage. Case study: COGEVI, an iconic cooperative COGEVI perfectly illustrates these challenges. COGEVI is the oldest cooperative in Champagne, founded in 1921, bringing together about 900 winegrowers, with an activity structured around brands like Champagne Collet. A common situation in the sector Before the crisis, COGEVI already had an EPM tool. But it was underutilized. As the market evolved, needs changed: better track sales costs structure budgets improve visibility on activity anticipate The goal was not to add a tool. The goal was to manage better. Identified needs Several concrete challenges emerged: track sales by cuvée, brand, market and agent have visibility on orders at 12 months structure the input and monitoring of budgets (OPEX / CAPEX) anticipate revenue and volumes These needs concerned the entire organization: general management, sales teams, and support functions. Actions implemented A progressive approach was chosen, with a project mode involving coaching. The main developments: structuring sales reporting implementing a 12-month order book formalizing budget management improving the view of the profit and loss account Results obtained The effects are concrete: better understanding of performance by brand and by market simplified and more reliable budget management clearer commercial planning ability to perform forecast simulations And above all: faster and more informed decisions based on reliable data. From reporting to decision-making This case highlights a key point: management is not just about producing reports. It must allow for: simulating scenarios anticipating developments and deciding more quickly In other words: transforming data into a decision lever. 🧱 The pillars of effective management In this context, structuring management relies on three fundamentals: 1. Reliable planning structured budget regular forecast 2. Simulation capability price / volume scenarios impact analysis 3. Alignment of functions finance sales operations A challenge common to all houses Whether for cooperatives, independent houses or groups, the issues today are very similar: lack of visibility difficulty in anticipating pressure on margins complexity of trade-offs Management is becoming a strategic lever. Conclusion The champagne market is becoming more demanding. Decision cycles are accelerating. Pressure on performance is increasing. In this context, It is no longer volumes that make the difference. It is the ability to manage. About PerfectSight PerfectSight supports companies in structuring their performance management, by bridging operational and financial data to enable faster and more informed decisions. We intervene notably with actors in the champagne sector on these issues. Find out in detail how COGEVI structured its performance management by filling out the form below.