Laurent-Perrier: King’s champagne supplier blames private school VAT for sliding sales
Labour’s introduction of VAT on private school fees contributed to profit at Laurent-Perrier, which supplies King Charles III with champagne, being significantly cut during its latest financial year.
The division of the French giant has said its sales were impacted not only by the Labour government extending VAT to school fees but also higher interest rates and low consumer and business confidence.
The UK arm of Laurent-Perrier added that uncertainty in the build up to the general election as well as “a volatile global economic and political context” were also factors.
New accounts filed with Companies House have confirmed that Laurent-Perrier UK’s turnover fell from £42.2m to £34.4m in the year to 31 March, 2025.
Its pre-tax profit was also slashed from £4.8m to £1m over the same period.
Total exports of champagne from France to Great Britain decreased by 12.6 per cent in 2024, having also fallen by 8.4 per cent in the prior year. Its total volume also reduced by 18.5 per cent.
Exports of rose champagne to the UK also fell by 21.9 per cent in 2024, having reduced by 13.7 in 2023.
Announced in Chancellor Rachel Reeves’ Autumn Budget in 2024, private schools became subject to VAT on their fees from the start of this year.
The government removed the tax benefits previously linked to the charitable status of all private schools in the UK whit has resulted in tuition and boarding tuition fees now being taxed 20 per cent.
Uncertainty hits Laurent-Perrier
In a statement signed off by the board, Laurent-Perrier said: “The company experienced a further decline in sales with volumes shrinking in both retail and the on-trade linked to uncertainty in the build up to the general election, higher interest rates, the introduction of VAT on school fees, low consumer and business confidence and a volatile global economic and political context.
“In addition, excess stocks in the market at the start of the financial year negatively impacted sales.
“This was in part driven by sales over the festive period in 2023 being lower than anticipated.
“Laurent-Perrier UK’s market share declined in retail mainly because it declined to participate in the supermarkets’ double discount promotions.
“Laurent-Perrier UK’s market share was static in the mainstream on-trade.
“The prestige cuvee champagne segment declined markedly because significantly fewer fine wine investors were buying.”
Laurent-Perrier was the first champagne producer to be awarded a Royal Warrant by Kind Charles III in May 2024.
The company was founded in 1812 and is owned by the Nonancourt family.