A GROWING thirst for champagne helped Majestic Wine to a better than expected rise in sales in the run up to Christmas, the warehouse wine merchant said yesterday.

The company reported a 10.4 per cent rise in underlying sales in the nine weeks to January 3 as champagne consumption continued to increase. The company estimated that wine and champagne sales across the UK had increased by about 6 per cent over the same period.

Tim How, chief executive, said: “British people are drinking more high value wines and champagne than they used to, not just at Christmas but the whole year round. At the same time, we have increased our market share through a strong range and strong promotions.”

Mr How said the retailer had lifted underlying sales of champagne, which makes up one fifth of the group’s sales, by 24 per cent over the past nine weeks.

He added: “We are delighted with our sales performance over the Christmas period. Wines from Bordeaux, Italy, Chile, and New Zealand sold very well and champagne sales grew strongly.”

In response Teather & Greenwood raised its estimate for full-year pre-tax profits from £12.5 million to £12.9 million.

Majestic Wine also announced the appointment of Simon Burke, the former Hamleys chairman and a non-executive director of the company, as its next chairman. Mr Burke will replace John Apthorp, 69, when he retires in August. Mr Apthorp was part of the team that bought Wizard Wine in 1989 and merged it with Majestic two years later.

He still owns 40 per cent of Majestic’s shares, worth about £70 million, part of which he is expected to sell after leaving the company.

Mr How said: “At some point John will want to sell some shares to institutions, but it will be less than half of them since he has every intention of remaining a key shareholder.”

Majestic Wine’s shares fell by 5p, or 2 per cent, to close at 278½p yesterday. Analysts attributed the fall to uncertainty surrounding the future of Mr Apthorp’s stake.

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