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LVMH wine and spirit register single-digit growth
The wine and spirit arm of luxury goods company LVMH, owner of brands such as Glenmorangie Scotch whisky and Belvedere Vodka, recorded a 7% increase in organic sales in 2017.
Glenmorangie maker LVMH recorded a “record year” in 2017
Wine and spirits was the only branch of LVMH that failed to register double-digit growth due to “supply constraints” in the second half of the year.
Nevertheless, the drinks business had a “good performance” in all regions, with organic sales hitting €5 billion (US$6.2bn). Profit rose 4% to €1.55bn (US$1.93bn).
Hennessy Cognac’s volumes increased 8%, “with significant growth in China and the US”, despite stock limitations.
In October last year, the brand opened a new €100m (US$118) bottling and logistics plant to reinforce its production capacity. Hennessy, the world’s largest Cognac brand, is aiming to reach sales of eight million nine-litre cases this year.
In total, LVMH recorded sales of €42.6bn (US$53bn) in 2017, an increase of 13% on 2016.
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.”