LVMH results boosted by Cognac

LVMH’s wine and spirits arm recorded organic revenue growth of 7% in the first half of 2018, bolstered by Hennessy Cognac’s performance in the US and China.

Hennessy experienced a strong performance in the first six months of this year

Total LVMH revenues hit €21.8bn (US$25.5bn) over the period, an increase of 12%, with “good growth” achieved in Asia, Europe and the US.

LVMH, the Paris-based owner of brands such as Belvedere Vodka and Glenmorangie Scotch whisky, saw its drinks revenues reach €2.27bn.

Hennessy’s “good performance” was also boosted by “major inroads” in central Europe and Africa. The brand’s revenue grew by 8%, with volumes up by 3%. Sales of ‘other spirits’ brands grew to €8.8m, up from €7.5m.

In October last year, Hennessy opened a new €100m (US$118) bottling and logistics plant to reinforce its production capacity.

Scotch brands Glenmorangie and Ardbeg witnessed a “strong” start to the year. An “ambitious expansion plan is underway” for both distilleries.

Woodinville Whiskey Company, which was acquired in July 2017, has commenced its expansion outside of Washington and experienced a“highly successful” period in California.

Launched in 2017 in the US and Mexico, Volcán De Mi Tierra Tequila continued its rollout and is “targeting highly selective distribution”.

Looking ahead, LVMH said of its wine and spirits ‘maisons’: “Over the coming months, they will keep investing in communication in their key markets to promote their brands and enhance their appeal.

“Hennessy has reaffirmed its foresight and agility by investing in new production capacity and, further upstream, in strong relationships with its eaux-de-vie suppliers.

“Focused more than ever on the quality of the customer experience and respecting their specific identities, all of the business group’s maisons are stepping up their commitment to social and environmental responsibility, the key to maintaining sustainable, balanced growth.”