wines & spirits penalized by China and the decline in champagne activity

If over the first nine months of 2024, sales of LVMH (60.8 billion euros) remained stable at comparable currencies and scope, those of its wines & spirits activity were down. This activity achieved a turnover of 4.193 billion euros, down 11% based on published data and 8% like-for-like. “Champagne activity is down in a context of continued normalization of post-Covid demand but remains in significant growth compared to 2019”underlines the group in a press release. On the cognac side, « Hennessy is penalized by weak local demand on the Chinese market”admits the group but specifies that “the United States has experienced a return to growth since the second quarter in a market that remains cautious”.

Growth relay

While these champagne and cognac activities are going through a bad patch, LVMH is looking for new growth drivers in France and internationally in other markets. Thus, within the rosés of Provence, Esclans Castle accentuates its international expansion. The group also wants to develop its American whiskey offering via the joint venture between the singer and international star Beyoncé Knowles-Carter et Moët Hennessy. Le whisky SirDavisborn from this collaboration, is intended as a tribute to Davis HogueBeyoncé’s great-grandfather, a farmer and whiskey smuggler in the American South during his lifetime. This whiskey is refined, assembled and bottled in Texas, the singer’s native state. LVMH is also investing in the alcohol-free wine segment. The group took a minority stake in French Bloom, a premium alcohol-free sparkling brand created by Maggie Frerejean-Taittinger and the model Constance Jablonski.

The distribution of LVMH sales by division