Corks are popping despite inflation: Little Red Riding Hood is screwing up the price of sparkling wine

Corks are popping despite inflation
Little Red Riding Hood is screwing up the champagne price

To health, the birthday child or the successful business deal: If you like it sparkling when toasting, you will have to dig deeper into your pocket in the future. Nevertheless, according to a survey, most Germans do not want to forego enjoyment, even in times of crisis. Well then cheers!

The sparkling wine producer Rotkäppchen-Mumm expects stable business this year. In view of the increased costs, for example for glass bottles, it can be assumed that the prices for sparkling wine will rise. “For a bottle between 50 cents and one euro,” said company boss Christof Queisser.

The summer went very well for the company. “Many consumers have made up for celebrations, whether birthdays or weddings,” said Queisser, referring to the restrictions in the pandemic. There was also a catch-up effect in gastronomy.

The past few months have been a little more subdued. The bottles alone, which are produced in the glass industry with a high energy requirement, are now twice as expensive. In addition, the costs for transport and packaging would have increased. “So far we have had stable business overall. And now it will be decided how the last few weeks will go, before Christmas and New Year’s Eve,” said Queisser. December traditionally accounts for 20 percent of the company’s sales.

The Rotkummel-Mumm sparkling wine producers based in Freyburg in Saxony-Anhalt have around 1,000 employees at several locations. Sales in 2021 and 2020 were around 1.2 billion euros. In the pre-Corona year 2019 it was 1.1 billion euros. The company generally does not provide information on profits. Across all business areas, including wine, Prosecco and spirits, the total sales of the Rotkäppchen-Mumm sparkling wine cellars in the 2021 calendar year were 320 million bottles according to previous information.

Germans don’t want to give up enjoyment

According to a trend study commissioned by the company, despite inflation, Germans currently attach great importance to community and enjoyment. 60 percent of those surveyed stated that moments of pleasure in times of crisis are particularly important to them. As a result of this longing, traditional celebrations such as Christmas, New Year’s Eve and birthdays became more important.

“But consumers also use small moments to pause, which one consciously enjoys. It doesn’t always have to be the big celebration,” said Queisser. According to the information, 1,500 people in Germany were interviewed for the representative study between October 27 and November 7, 2022.

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