French luxury group Louis Vuitton Moët Hennessy has announced in its full year results for 2017 that its wine and spirits arm witnessed a surge in growth last year thanks to the US and recovery in China.
In total the group announced recorded revenue of €42.6 billion in 2017, an increase of 13% over 2016.
Reported revenue from the wine and spirits category grew 5% between 2016 and 2017 from €4.8bn to over €5bn.
The performance of the wine and spirit brands across all markets was described as “good” but it was the only part of LVMH that did not enjoy double digit growth in 2017, which the group put down to “supply constraints” in the second half of the year.
Nonetheless, the group was positive about the “strong momentum” in the US and “confirmed recovery” in China.
Champagne grew steadily, with volumes up 4%, while 7.5 million cases of Cognac were shipped in 2017 with Hennessy’s volumes growing 8%.
Bernard Arnault, chairman and CEO of LVMH, said: “LVMH achieved another record year. The excellent performance, to which all our businesses contributed, is due in part to the buoyant environment but above all to the remarkable creative strength of our brands and their ability to constantly reinvent themselves.
“Continued innovation, entrepreneurial spirit and the quest for excellence: all Maisons continue to assert these core values while maintaining rigorous execution of their strategies on the ground. In an environment that remains uncertain, we can count on the appeal of our brands and the agility of our teams to strengthen, once again in 2018, our leadership in the universe of high quality products.”
Information from https://www.thedrinksbusiness.com