Substantial price rises and new vintages fuelled growth for Moet Hennessy, the world's largest Champagne and Cognac company, in the first half of the year.
The drinks division of luxury goods giant LVMH, owner of Moet, Veuve Clicquot, Krug, Dom Pérignon and Château d’Yquem, recorded a 20% increase in profit and a 23% rise in revenue in the six months to 30 June.
Wine and Champagne revenues were EUR748m, while profits rose 17% to EUR185m, thanks to a 6% rise in Champagne volumes, driven by growth in vintage and rosé Champagnes, as well as ‘substantial’ price increases.
Moet Hennessy said ‘solid gains’ were made in all markets, but revenues in Asia grew by 25% and in Japan by 17%, compared to increases of 10% and 7% for Europe and the US respectively.
The company highlighted the launches of Dom Pérignon’s 2003 vintage and the 2009 vintage of Yquem, alongside a new collection for Ruinart’s Blanc de Blancs cuvée, created in collaboration with designer Hervé Van der Straeten.
Moet Hennessy said it would ‘carefully control’ volume increases for Champagne in the coming months, while remaining true to its strategy of value creation.
Written by Richard Woodard