LVMH spirits sales drop 17% in Q1
The spirits arm of LVMH plunged by 17% during the first quarter (Q1) of 2025 due to continued soft demand for Cognac in the US and China.
Paris-headquartered LVMH reported revenue of €629 million (US$714.8m) for spirits in the first three months of 2025 (Q1), down from €736m (US$836m) year on year.
It followed a full-year sales drop of 14% for LVMH’s spirits division in 2024.
The company noted that Cognac was ‘held back by weaker demand’ in the US and China during Q1.
The firm also cited ‘uncertainties’ regarding tariff policies.
LVMH highlighted that its Glenmorangie Scotch brand benefitted from the Triple Cask Reserve rollout and a new campaign starring actor Harrison Ford.
The firm’s Champagne and wine division fared better than spirits with a 1% drop to €676m (US$768m) in Q1.
Total wine and spirits sales decreased by 9% during the quarter to €1.3 billion (US$1.47bn).
The wine and spirits arm saw the biggest sales drop of all LVMH divisions, which span cosmetics, jewellery, watches and leather goods.
The luxury conglomerate saw its total group sales fall by 3% to €20.3bn (US$23bn).
The company said in a statement: “In a disrupted geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year.”
The firm said it would rely on its teams, diversity of businesses and “good geographic balance of its revenue to further strengthen its global leadership position in luxury goods in 2025”.
Challenges for Cognac
China’s Ministry of Commerce launched an investigation into brandy imports from the European Union on 5 January 2024. It was due to last one year but was extended in January by three months.
Under this investigation, taxes have been imposed on brandy imports in China since last October, the Bureau National Interprofessionnel du Cognac (BNIC) noted.
The BNIC warned that since the taxes on Cognac exports to China were introduced, they have caused a 72% drop in shipments, with February 2025 particularly affected.
BNIC figures showed exports of Cognac fell by 10.6% in value last year due to a decline for VSOP and XO expressions.
The largest producers of Cognac have seen their sales tumble over the past 12 months.
Sales of Martell Cognac plummeted by 25% during the first half of Pernod Ricard’s financial year, contributing to around 90% of the group’s total net sales decline.
Similarly, French firm Rémy Cointreau (owner of Rémy Martin) posted a 19% sales drop for Cognac in the first nine months of its 2024-25 financial year.
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