Louis Vuitton 2005 Annual Report Download - page 23

LVMH’s wines and spirits brands are served by
apowerful international distribution network.
The Group’s strategy is focused on the high-end
market segments. Number one in the world
of champagne, LVMH also has a sparkling
and still wines business produced outside
France in the most renowned winegrowing
regions. The Group is also world leader
in cognac with Hennessy and, as a means
of complementing this historic business,
is expanding in the area of luxury spirits.
THE WINES AND SPIRITS BUSINESS GROUP STRENGTHENS
ITS LEADERSHIP POSITION Thanks to the strategy put in place
by its teams, in 2005, the Wines and Spirits business group continued
to strengthen the leadership role of its star brands in key markets.
Further advances were made possible by the good performances of
the brands and by the efficiency of Moët Hennessy’s powerful global
distribution network.
The 4% growth in sales volumes of champagne was accompanied by
price increases in all key markets and the continued strategy of improv-
ing the product mix. The growth of Hennessy cognac is particularly
noteworthy in higher-end products and key markets such as the United
States and China.
CHAMPAGNE AND WINES: ADDITIONAL ADVANCES FOR
THE GROUP BRANDS In Champagne, Moët & Chandon
confirmed its robust position, consolidating its ranking as world leader.
The brand consolidated its positions in its traditional markets in Western
Europe and recorded double-digit growth in new markets such as Eastern
Europe and Asia. Growth proved to be particularly noteworthy in Japan
and China, which are new, rapidly developing regions for champagne.
The vitality of Moët Rosé, whose revenue continued to grow signifi-
cantly in all markets, has also boosted Moët & Chandon’s performance.
Dom Pérignon saw sustained growth in its revenue and prices in its
three major markets, the United States, Japan and Europe. The excep-
tional quality of the Dom Pérignon 1998 vintage, which was unveiled in
2005, was greeted with unanimous approval.
2005 was a flourishing year for Ruinart, both in terms of commercial
success and in terms of image. The brand reaped the fruits of its value
strategy which focused on premium vintages and developed its interna-
tional stature: now with a strong footing in England, Germany and Italy,
Ruinart has become one of the leading champagne brands in Russia and
has started its conquest of Japan and the United States.
Mercier, whose strategy is primarily focused on the French market,
continued its expansion in traditional restaurants thanks to its original
“Places for All Times” (“Les lieux de Toujours”) program.
Veuve Clicquot performed extremely well with particularly sustained
growth, not only in the United States where there is strong demand
for the brand but also in the United Kingdom, Italy, Australia and Japan.
The great success of the non-vintage Veuve Clicquot Rosé, a new cham-
pagne launched in Japan in 2004, was confirmed in 2005. It will be
launched worldwide in 2006 to fully exploit the growth of a market
segment which is currently the most dynamic for champagne.
Moët & Chandon invents
«Nectar on Ice »
Nectar on Ice is a new way
of enjoying champagne as
along drink. Made of
8centiliters of Nectar
Impérial, three ice-cubes
and two lime zests,
this original creation is
forpeople who like
cocktails, especially
in the United States.
«Byblos by
Dom Pérignon »
or the meeting
of two legends
An extremely limited edition,
the result of an association
between the world’s most
legendary champagne and the
most chic and glamorous hotel
on the Côte d’Azur: 10 numbered
jeroboams of Dom Pérignon
Vintage 1995, dressed in
exceptional finery and dipped
in a bath of white gold.
The elegance of a haute
couture garment.
LVMH 2005 WINES AND SPIRITS
PASSIONATE ABOUT CREATIVITY
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