Decline on the French luxury drink market. Cognac and champagne, significant sales decreases
The Moët Hennessy division, which includes the Hennessy cognac and other prestigious champagne brands, has seen its operational profit by decreasing by 36% in 2024.
Moet PHOTO: X champagne
The LVMH luxury group has long been proud of holding some of the most prestigious brands of wines and spirits in the world. Hennessy cognac, champagne, Veuve Clickot, Krug and Dom Pérignon, as well as, more recently, the Rosé in Provence Minuty, are the jewels of its Moët Hennessy division.
These brands have strengthened their position as a world leader in the field of cognac and champagne. While this was once a source of pride, because the bottles flew from the shelves, the division became a source of tension, because the cognac crisis and the slowdown of the champagne overwhelmed the forecasts, writes Le Monde.
After an initial slowdown in 2023, Moët Hennessy – held by 34% by the British Group Diageo, world leader in the field of spirits – reported for 2024 revenues of 5.9 billion, decreasing by 11%. The trend continued in the first quarter of 2025, with a new decrease in sales by 9%, to 1.3 billion euros.
At first glance, the wines and spirits division may seem like a small contributor to the group led by Bernard Arnault. This represents only about 7% of the total sales, far from the power in the field of fashion and leathera and after distribution, watches and jewelry, perfumes and cosmetics. But its share of the operational profit is significant. Due to their high margins, the cognac and champagne integrate perfectly into the world of luxury.
