LVMH Wines & Spirits Sees 7% Growth In 2017, Despite Supply Constraints
The wine and spirits business of LVMH Moët Hennessy Louis Vuitton recorded organic growth of 7% in 2017, with revenue reaching €5.084 billion.
The group's Champagne business grew steadily, with volumes up by 4%, while Hennessy volumes increased by 8%, with 'significant growth' in China and the US.
LVMH says that all of its business groups recorded double-digit organic growth in 2017, with the exception of its wine and spirits arm, which was limited by supply constraints.
However, the company added that the inauguration of the new €100 million Pont Neuf bottling site in October is set to boost production capacity in line with Hennessy's growth.
Overall, LVMH (including drinks, fashion, perfume and jewellery) reported revenue of €42.6 billion in 2017, representing an increase of 13% compared to the previous 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," said Bernard Arnualt, chairman and CEO of LVMH.
"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.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.