LVMH full-year wine and spirits sales rise 26%
The wine and spirits arm of LVMH saw its revenue grow by more than a quarter in 2021, led by Hennessy Cognac’s rebound in the US and China.
LMVH’s wine and spirits unit, Moët Hennessy, saw sales climb by 26% to €5.97 billion (US$6.65bn) last year, of which €3.18bn (US$3.54) came from Cognac and spirits. Profit from recurring operations was up by 34% compared with 2020.
In total, LVMH’s revenue rose by 44% to €64.2bn (US$71.5bn) in 2021, compared with the previous year.
Bernard Arnault, chairman and CEO of the luxury goods firm, said: “LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis.”
Hennessy Cognac reported an ‘exceptional performance’ over the past year, with volume up by 9%. Growth was boosted by the US, continued recovery in China, and acceleration in Europe and Africa, LVMH said.
The brand has established a global partnership with the NBA, expanded its production capacity and invested in a dedicated store network on the island of Hainan in China.
LVMH also reported an ‘unprecedented performance’ for its Scotch whiskies Glenmorangie and Ardbeg, in line with ‘ambitious innovation and growth plans’. In September last year, Glenmorangie opened The Lighthouse, the brand’s new multi-million-pound innovation distillery.
The company also noted ‘strong growth’ for its emerging spirits brands, American whiskey Woodinville, Volcán De Mi Tierra Tequila and Cuban rum Eminente, aided by the expansion of distribution and production capacities. Volcán De Mi Tierra Tequila and Eminente both entered the UK market last year.
Furthermore, LVMH said it had bolstered its online sales presence with the launch of Clos 19 in France, the Our Cellar site in the US and its joint acquisition with Campari Group of Italian e-commerce company Tannico.
Looking ahead, LVMH plans to ‘continue to strengthen its portfolio and accelerate the transformation and selectivity of its distribution’, as well as expand its range of experiences.
Furthermore, the company said it was committed to acting sustainability and significantly reducing its carbon footprint.
Arnault added: “Despite the uncertainties that remain at the start of this new year, which continues to be disrupted by health concerns, we approach 2022 with confidence and are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market.”