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LVMH wine and spirits sales struggle in Q1
As retailers remain cautious about Hennessy Cognac, LVMH saw a double-digit drop for wine and spirits during the first quarter of 2024.
The wine and spirits arm of the group saw revenue decline by 12% organically during the first quarter of 2024.
Revenue from wine and spirits during the first quarter fell to €1.417 billion (US$1.508bn), down from €1.694bn (US$1.803bn) in the first three months of 2023.
LVMH attributed this to the strong growth at the beginning of 2023, when distributors were restocking.
The company noted retailers were acting cautiously towards Hennessy Cognac, particularly in the US, which was described as ‘an uncertain environment’.
A drop in Champagne sales due to normalisation of the category post-Covid-19 also contributed towards the decline.
In a closing statement, LVMH said: “In an uncertain geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year.
“The group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution.”
The wine and spirits arm of LVMH was the only part of the business to experience a decline in revenue in the company’s full-year sales results.
Wine and spirits sales fell from €7.099 billion (US$7.604bn) in 2022 to €6.602bn (US$7.156bn) in 2023, representing a 4% organic revenue decline (7% on a reported basis).