Lanson-BCC Reports 32% Drop in 2025 Profits as Champagne Sales and Margins Shrink

The French champagne group Lanson-BCC reported a sharp drop in profits for 2025, with net income falling by 32% to €16.2 million. The decline comes amid lower sales volumes and rising costs for both grapes and stock financing. The group, which includes eight champagne houses, saw its revenue fall by 8.7% to €233 million in what it described as a difficult market environment affecting the entire sector.

Bruno Paillard, CEO of Lanson-BCC, addressed the results on Wednesday and warned that champagne producers have lost their popular customer base in France. He called this a serious mistake and announced plans to regain ground in the domestic market, even if it means higher costs due to expensive inventory. Paillard said the company will focus on strengthening its entry-level offerings, including relaunching the Chanoine Héritage cuvée and increasing its presence in large retail chains.

Paillard pointed to a decade-long stagnation in champagne market growth, attributing much of the problem to soaring grape prices. He highlighted the influence of luxury conglomerate LVMH, saying that aggressive competition for grape supplies has driven up costs across the industry. According to Paillard, all champagne houses have had to match these higher prices to secure enough grapes for production, resulting in cellars filled with wine that is too expensive for current market demand.

In response, Lanson plans to reduce its grape purchase prices by between 5% and 10% this year. The company did not provide specific forecasts for 2026, citing global economic uncertainty. However, Paillard stated that Lanson’s goal is to recover lost sales volumes in key markets while maintaining profitability. He indicated a target of at least €20 million in net profit for the coming year.

In January, Lanson completed the acquisition of Heidsieck & Co Monopole for €50 million, expanding its portfolio of premium brands. The move is part of a broader strategy to strengthen its position in both domestic and international markets as competition intensifies and consumer preferences shift.