Majestic enjoyed a happy Christmas

The company said it was "delighted" with its performance, with like-for-like UK sales for the nine weeks to 3 January up 10.4% on last year.

In addition to strong champagne sales, wines from Bordeaux, Italy, Chile and New Zealand sold well, Majestic said.

Majestic Wine operates 120 outlets in the UK. It also operates a number of warehouses in French channel ports.

"We're targeting more expensive wines as an area to expand, and wines at more than �20 a bottle were up 60% year-on-year," said chief executive Tim How.

Sophistication

The British wine drinker is becoming much more sophisticated and drinking better quality wines, Mr How said, fuelling a 6% growth in the market annually.

Sales of champagne were up by 24%, with Veuve Cliquot tickling the most palates.

Bordeaux was also a big seller- priced at about �10 a bottle - with sales up 20%.

The cheaper end of the market - bottles selling for under �5 - was led by New Zealand whites, mostly Sauvignons, which saw their sales almost double.

Majestic also announced that its chairman John Apthorp would be retiring following the company's annual general meeting in August this year.

He will be succeeded by Simon Burke, who has been a non-executive director at Majestic since March 2000. Mr Burke has previously been chief executive of the Virgin Retail Group and chairman of Hamleys.

Majestic was founded in 1980 and floated on the Alternative Investment Market (AIM) in 1996.