Good news as LVMH results point to luxury drinks recovery
on 21/04/11 at 10:06 amIndustry
First quarter figures from Moët Hennessy owner LVMH has offered fresh evidence that the luxury drinks sector is back in vogue following the dip in consumer spending that accompanied the global economic slowdown.
Moët Hennessy, the luxury specialist firm’s drinks arm, posted 20% sales growth to €762 million, driven chiefly by strong demand in the US – a region which has proved particularly troublesome for the division in recent quarters – and Asia, naturally.
With the drinks sector hit hard by the recession around the world, Moët Hennessy, which owns Dom Pérignon and Veuve Clicquot Champagne’s along with Moët & Chandon – the world’s biggest-selling Champagne brand – has been closely watched by analysts looking for signs of recovery in the industry.
The results echo the confidence of LVMH chairman and chief executive Bernard Arnault, who earlier this month expressed his belief that the Champagne business had bounced back.
Indeed, all LVMH divisions reported double-digit growth apart from the perfumes and cosmetics business, which saw sales rise 9%.