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Economy World

King Charles III Revokes Royal Warrants for Champagne Houses, Shaking Up Luxury Market

King Charles III Revokes Royal Warrants for Champagne Houses, Shaking Up Luxury Market
Source: Getty Images
  • PublishedJanuary 26, 2025

King Charles III has significantly trimmed the list of royal warrant holders, stripping several prestigious Champagne houses, including Lanson, of their long-held distinction as official suppliers to the Royal Court, Bloomberg reports.

The move, announced last month by the Royal Warrant Holders Association, has sent ripples through the luxury goods market, particularly in the champagne sector.

Champagne Lanson, which has enjoyed royal warrant status since 1900 under Queen Victoria, was among the notable brands to lose the coveted designation. The decision is a blow to the French producer, for whom the UK is its largest market. Other prominent champagne houses, including LVMH’s Krug and Pernod Ricard SA’s Mumm, also lost their warrants.

The Royal Warrant allows holders to display the Royal coat of arms on their products and the phrase “By appointment to…” providing prestige and a clear marketing edge, and is thought to have clear financial benefits. Lanson, for instance, has described the designation as “very important” to the brand, especially given its long-standing partnerships, such as its 40-year-plus connection to the Wimbledon tennis tournament.

While Lanson declined to comment, Pernod Ricard released a statement noting that while Mumm no longer holds the warrant, they remain “a proud supplier to the royal household” with Dubonnet. LVMH also declined to comment.

The loss of the warrant comes at a particularly challenging time for the champagne sector, which saw shipments fall 9.2% last year. Lanson-BCC, listed on the Paris stock market, is scheduled to report 2024 revenue on Jan 30, after experiencing a 20% drop in first-half sales. In its most recent fiscal year, Pernod Ricard reported a double-digit decline in sales for Mumm.

Despite the cuts, several French Champagne labels retained their royal warrants, including Bollinger, Laurent-Perrier, Louis Roederer, Pol Roger, LVMH’s Moet & Chandon and Veuve Clicquot. English sparkling wine maker Camel Valley also gained the royal seal of approval, demonstrating that some producers retain the royal favour.

King Charles and Queen Camilla have granted warrants to 542 suppliers, a significant decrease compared to the 800 or so under Queen Elizabeth II. The rationale behind the changes remains undisclosed, with the Royal Warrant Holders Association declining to comment.

While primarily a mark of prestige, royal warrants are also believed to impact consumer perception of quality and willingness to pay a premium, particularly for alcohol. The monarchy’s choice of suppliers is thought to reflect both official functions and personal tastes. The late Queen Elizabeth II was known to enjoy champagne, and had granted Dubonnet a royal warrant – a tipple mixed with gin and lemon was reputed to be her and the Queen Mother’s favorite cocktail. That particular warrant has been renewed by King Charles.

 

 

Written By
Michelle Larsen