LANSON in Reims
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2015 MESSAGE FROM THE CHAIRMAN Dear Shareholders, 2015 was a positive year for Champagne. On the one hand, the Nevertheless, despite its mixed results for 2015, Champagne Hillsides, Cellars and Avenue de Champagne in LANSON-BCC is reasserting its long-term value development Épernay were recognized as UNESCO World Heritage sites. strategy. The Group is moving forward with major investments On the other hand, the harvest turned out to be of excellent in its Houses. The sometimes unreasonably aggressive levels quality, although its overall volume is slightly lower than of competition seen on certain markets highlight the benefits sales for the year. Lastly, the general economy, despite a still of a common sense policy to not ignore any segments. very challenging environment, picked up again in France at The Group’s development is underpinned by the effective fit the end of the year, for the first time in five years. between its Houses, combined with the increasingly widely For LANSON-BCC, this recognition by UNESCO is recognized quality of their wines, their efficient production important: while this is good news for the entire Champagne facilities and their effective management. region, this is directly true for three of our Houses - BOIZEL I would like to thank our customers, our partners, our teams and DE VENOGE, both on Avenue de Champagne in Épernay, and our shareholders for their confidence, trust and loyalty. and PHILIPPONNAT, in Mareuil-sur-Aÿ. Nevertheless, despite its mixed results for 2015, LANSON-BCC is reasserting its long-term value Bruno Paillard Chairman and development strategy Chief Executive Officer However, from a commercial perspective, 2015 was a much more difficult year for the Group. The first six months were, like the end of 2014, significantly affected by France’s economic difficulties. The last few months of 2015, although more dynamic, did not enable the Group to make up for all the missing volumes from the first half of the year. In this context, the change in LANSON-BCC’s results reflects the strong level of competition seen, in France and neighboring export markets, as well as the increase in the cost price of bottles sold, which has not been fully offset by the improvement in sales prices. The year has also been marked by the ongoing investments benefiting several of the Group’s Houses, as well as the reorganization of distribution on several export markets. Alongside this, LANSON-BCC has continued to further strengthen its financial structure. By capitalizing the bulk of its earnings, the Group has doubled its consolidated equity since 2006. Gearing (1.96) is at a normal position for the Champagne industry, in line with its high levels of stocks for aging, down from a high of 5.68 at end-2006 following the acquisition of BURTIN and Champagne LANSON. Excluding stocks, this ratio drops from 0.39 in 2014 to 0.32. A good end to 2015, positive pricing trends and a further THE GROUP’S reduction in financial expenses have not made it possible FOUNDERS to offset the impacts of the contraction in volumes during Bruno Paillard a large part of the year on profitability. Better results are LANSON-BCC Group Chairman expected for export in 2016, building on the progress made and CEO Philippe Baijot on several export markets (Japan, Italy, etc.) and the new Champagne LANSON partnerships set up for other destinations. Chairman THE RARE ELEGANCE of a new exceptional cuvee CLOS LANSON 2006 LANSON is reasserting the House’s value Blend: 100% Chardonnay from the Clos Lanson plot in Reims development strategy by expanding its selection of Vinification: 100% oak barrels high-quality wines with its Clos Lanson cuvee, an and 7 years on lees Ageing: 9 years exceptional champagne from an exclusive plot. Disgorging: 1 year Dosage: 3g Brut nature LANSON HAS A VINE GARDEN Clos Lanson, a mythical new cuvee Focused on the quality of its wines and true to its philosophy of excellence, LANSON has opened a new chapter in its magnificent story that began more than 250 years ago, unveiling a mythical new prestige cuvee, Champagne Clos Lanson. This exceptional cuvee is from a single plot with one hectare of Chardonnay vines at the heart of Reims, looking out over its cathedral. Surrounded by high walls, Clos Lanson has a rich history, with vines that took root in the middle of the last century and benefit from a specific microclimate as well as an exceptional seam of particularly fine chalk. Exceptional wine benefiting from particular care The Clos Lanson cuvee is unique thanks to its rarity, the care taken with it at every stage and its specific vinification. The vines are cultivated biodynamically, with a “HVE” high environmental value approach, respecting nature and promoting healthy soil. The grapes are harvested by the House’s men and women, then carefully sorted. Only perfect grapes are selected to create Clos Lanson champagnes. Clos Lanson has all the features of an outstanding champagne, benefiting from its perfectly mastered ageing in wood and optimum development. The juices, taken exclusively from the first press, are vinified separately for several months in oak barrels from Argonne forest. Following a lengthy ageing in the cellars, the result is a magnificent wine: full-bodied, rich and all in finesse. Supporting the value development strategy In 2016, Hervé Dantan, LANSON’s Cellar Master, released the 2006 Clos Lanson cuvee after maturing for 10 years: less than 8,000 bottles, all numbered, and some magnums, are available to fine wine enthusiasts. The development of this new luxury vintage is helping further strengthen the value strategy rolled out by LANSON. — www.lanson.com — COMPLEMENTARY HOUSES WITH CLEAR IDENTITIES Champagne 2015 LANSON in Reims www.lanson.com REVENUES 266.5 million euros House founded in 1760 EBIT LANSON is one of the oldest Champagne Houses. When creating its wines, it highlights the fruit and its rich aromas in its quest for purity. The freshness and energy that are the 27.1 hallmarks of Lanson’s style increase their cellaring potential and predestine the cuvees for ageing. Present on the five million euros continents, LANSON enjoys strong positions, particularly in the UK, where it has held a Royal Warrant continuously since 1900, awarded by Queen Victoria. LANSON Champagnes are distributed across all channels - mass retail stores, wine stores, gourmet food stores, restaurants, hotels - in France and internationally. NET INCOME In 2016: LANSON is developing a long-term value strategy. In particular, the regular premiumization of high-quality wines is illustrated by the launch of a new prestige cuvee, Champagne Clos Lanson, from an exclusive plot at the heart of the estate. 12.3 This strategy is supported by a dynamic image, as shown by the million euros new Black Label design. Alongside this, LANSON is further strengthening the quality of its production facilities, moving forward with its major six-year investment program (2013-2018) aiming to further improve the quality of its wines, its commercial responsiveness and its international reach. EMPLOYEES 450 Champagne CHANOINE FRÈRES in Reims www.champagnechanoine.com House founded in 1730 Founded during the reign of Louis XV, CHANOINE FRÈRES was the first House to be authorized by the city of Épernay to dig a cellar in Champagne. The second oldest Champagne House, CHANOINE FRÈRES, now established in Reims, successfully blends modernity with tradition, with its high-quality, functional production facilities. CHANOINE FRÈRES Champagnes are present in all leading retail stores, with the classic CHANOINE FRÈRES cuvees and the prestigious TSARINE range, a brand that is often in the cinema spotlight. In 2016: CHANOINE FRÈRES is supporting the growth of its TSARINE cuvee and the development of its high-end listing TZARINA on both domestic and export markets. Its value strategy is reflected in increased listings across traditional networks especially on export, as well as dynamic, innovative communications around a charming ambassador, Adriana Karembeu, who embodies elegance and refinement and has inspired a new “Adriana” cuvee. Champagne BOIZEL in Épernay www.boizel.com House founded in 1834 “Excellence for over 180 years”: with each generation, the BOIZEL Family have devoted themselves with passion to ensuring the highest standards and crafting outstanding vintages, renowned for their elegance, finesse and balance. Exported from the 19th century to the UK and Europe, BOIZEL Champagnes opened up to more distant continents such as Oceania and the Americas in the 20th century. It has also been present for the past 25 years in Japan, a country that is home to many enthusiasts of the delicate Rosé and the magnificent Joyau de France. In France, BOIZEL is the leading mail-order Champagne thanks to its strong customer relations focus and high-quality marketing. In 2016: BOIZEL has launched a major program to renovate its magnificent buildings on Avenue de Champagne in Épernay, recognized as a World Heritage Site since 2015. Its reputation will be further strengthened by promoting its traditional cellars and opening a dedicated store. Alongside this, BOIZEL is supporting the development of its sales internationally by building stronger relationships with carefully selected importers. In France, it is ramping up its marketing actions around vintage cuvees and new label designs. Champagne DE VENOGE in Épernay www.champagnedevenoge.com House founded in 1837 DE VENOGE cultivates a policy of quality and innovation in the purest champagne tradition. Recommended by many prestigious institutions, DE VENOGE is one of the most decorated Champagnes of its generation. Available through selected retail outlets (hotels, restaurants and wine stores), its extensive range of Champagnes expresses all the region’s rich heritage, the unique features of its grape varieties and the possibilities for marrying blends together. From the Cordon Bleu to the Louis XV cuvee and the prestigious “Princes”, the House follows a core guideline that is easily identifiable through its slogan: “Noblesse Oblige”.