Louis Vuitton 2003 Annual Report Download - page 31

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Hennessy consolidated the recognition and
image of its X.O, which has become the regional
benchmark for high-end brands. V.S.O.P Privi-
lège is emerging as the most popular of contem-
porary spirits, giving the brand a notable gain in
market share.
The Prestige line, consisting of Private Reserve,
Paradis Extra and Richard Hennessy, backed by
major advertising and promotional investments,
boosted Hennessy’s position in this profitable
segment.
In Japan, where the market is generally down,
major new initiatives were introduced in 2003 to
promote V.S.O.P Privilège and X.O. Hennessy
continued to dominate the premium segment.
In China, Hennessy made full use of its new
retail model and was able to consolidate its
leadership in this promising high-growth mar-
ket. The entire product line, especially X.O,
benefited from this momentum.
Taiwan proved to be a major source of satisfac-
tion in 2003. Sales of V.S.O.P Privilège and X.O
increased substantially.
STRONG GROWTH OF RUSSIA IN THE
EUROPEAN MARKET
In Russia and in the CIS, after an exceptional
year in 2002, Hennessy again posted strong
growth in 2003. This was due to improvements
in its retail network and the high visibility of the
brand as the result of major expenditures on
advertising and promotions. In Ireland, its his-
toric bastion, Hennessy maintained its exceptio-
nal market share for V.S. (over 85%) despite the
general decline in sales following the 40% hike
in excise taxes on spirits.
Backed by the excellence of its distribution net-
work, Hennessy will continue to pursue its value
strategy in 2004 and will continue to spend
significant amounts on advertising and promo-
tions to bolster its position as a market leader
in premium spirits. The creation of Ellipse, a
prestigious new cognac made from a blend of
seven outstanding eaux-de-vie, will help to pro-
mote Hennessy’s image of excellence with rare
cognac enthusiasts.
BELVEDERE AND CHOPIN
Following the acquisition in 2002 of 40% of
Millennium LLC, the importer of Belvedere and
Chopin vodkas to North America, and of the Pol-
mos Zyrardow distillery in Poland, Moët Hennessy
continued to invest in luxury vodkas to support
the growth of the Belvedere and Chopin brands.
Millennium bolstered its positions in the United
States with over 500,000 cases of Belvedere and
Chopin vodka distributed, a 20% volume increase.
The new promotional campaign created for
Belvedere was quite impressive, and the highly
awaited launch of the Belvedere flavored vodkas
offers very good prospects for growth in 2004 in
a fast-growing market. Investments by Moët
Hennessy in 2003 also raised to thirty the num-
ber of countries where subsidiaries or agents of
the group now distribute these two luxury vodka
brands.
29
PASSIONATE ABOUT
CREATIVITY