This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Hennessy Cognac hails double-digit gains
LVMH has celebrated an “excellent performance” among its wine and spirits brands in the first half of its financial year, with Hennessy Cognac recording double-digit growth.
Hennessy Cognac experienced double-digit growth in the first half of 2016
The brand saw a 13% volume increase in the first six months of 2016 thanks to “substantial momentum” in the US, the Caribbean, Africa and travel retail channels.
Following a wave of retailer destocking in China last year, LVMH describes Hennessy’s sales as “encouraging” in the country, in addition to the wider Asian market.
“New communications campaigns, in particular the first worldwide campaign devoted to Hennessy X.O directed by Oscar winner Nicolas Winding Refn, helped to enhance the brand’s desirability,” the firm said.
“Strong growth” was also recorded for LVMH’s Scotch whisky portfolio consisting of the Glenmorangie and Ardbeg brands, while super-premium Belvedere vodka also witnessed solid gains.
In total, LVMH’s wine and spirits brands experienced 7% growth in reported net sales and 17% increase in profit from recurring operations.
The firm said its outlook is “confident” for its wine and spirits brands in the second half of 2016, when it is planning “numerous product launches” and production capacity expansion for Hennessy.
“LVMH’s results for the first half of 2016 reflect, more than ever, the strength of our business model, which allows us to continue to grow even during an unstable geopolitical environment and economic and monetary uncertainties,” said Bernard Arnault, chairman and CEO of LVMH, which produces a range of products across the luxury good sector, including fashion, cosmetics and jewellery.
“The diversity of our businesses, the entrepreneurial style of our brands and the agility of our organisation all contribute to the growth of the group.
“By remaining vigilant, we face the second half of the year with confidence and count on the quality of our products and the talent of our teams to further strengthen our leadership in the world of high quality products in 2016.”