Louis Vuitton 2005 Annual Report Download - page 24

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Krug once again had an excellent year, confirming the success of its
repositioning and its ability to appeal to a public that is more open than
it used to be. By concentrating its investments in its strategic markets,
i.e. the United States, Japan, Italy and England, Krug recorded growth
both in terms of volume and value. Its growth has proved to be partic-
ularly noticeable in the United States with double-digit increases in
volume for the fourth consecutive year, against a background of signif-
icant price increases.
Moët Hennessy Wine Estates, which has included our wines from the
New World (Australia, New Zealand, California, Argentina and Brazil)
since January 1, 2004, obtained double-digit growth in sales for a second
straight year. The United States, which is the world’s leading market
for wines, has greatly contributed to this advance. Moët Hennessy Wine
Estates also benefited from the growth in wine consumption in Asia
and Northern Europe. Sparkling wines sold under the Chandon brand
have consolidated their leadership positions in the “super premium”
category in their respective local markets. Still wines such as Terrazas de
los Andes in Argentina and Cloudy Bay in New Zealand continued to
gain momentum and expanded their distribution on international
markets.
Château d’Yquem strengthened its status in 2005 as the most prestigious
Sauternes wine due to the marketing of a highly anticipated historic
vintage, the Château d’Yquem 2001, whose expertly orchestrated launch
was enthusiastically received by buyers all over the world. For the second
consecutive year Château d’Yquem presented its primeur 2004 to the
national and international wine and spirits clients, a campaign that was
an undisputed success.
COGNAC: HENNESSY INCREASES ITS STRONG POSITION
Hennessy, the undisputed leader in cognac, saw 9% growth in sales
volumes for 2005.
In the United States, the house’s leading market, Hennessy remains
the leader in the cognac category in terms of volume and value. The
brand took advantage of three vectors for growth: the increase
in consumption of V.S, continued double-digit growth for V.S.O.P
and the implementation of high-quality operations that have enabled
the Prestige range to enjoy great success in high-end establishments.
In Asia, 2005 saw exceptional growth, particularly in China, a country
that is increasingly positioning itself as a significant growth driver and
is already the biggest market of X.O for Hennessy. In Japan, where
the market for brown spirits is down, Hennessy maintained its value
strategy focused on X.O and the Prestige range which have posted
double-digit growth.
In the European countries, Russia is confirming its potential. Hennessy
is exploiting its strong appeal there and is showing significant prof-
itability. Hennessy V.S is maintaining its exceptional market share in
Ireland.
Glenmorangie
integrates Moët Hennessy’s
distribution network
Glenmorangie’s integration, throughout the course
of 2005, has gone well. Priority was given to the rapid
development of synergies with the Moët Hennessy teams.
Distribution of the Glenmorangie whisky brands was
therefore resumed and integrated into the Moët Hennessy
network in almost every country in the world. This initiative
resulted in improved margins in most of the major markets.
The Glenmorangie brand has, incidentally, improved its
positioning and increased its prices in most of the key
markets, a strategy that will continue in 2006. It was also
launched in new rapidly developing markets in Central
Europe, Eastern Europe and Latin America.
PASSIONATE ABOUT CREATIVITY
22
LVMH 2005 WINES AND SPIRITS
Cognac and chocolat:
a happy union advocated
by Hennessy Cognac and chocolate, made
sublime by human hand—these
two are made for each other.
This rich blend of flavors
is what Hennessy wants to
recommend to its consumers.
Aglass of X.O with specially
selected chocolates; enjoying
Paradis Extra along with a
pastry that is created
specifically for it… new tasting
rituals for a unique experience.
The Hennessy teams are
now working to establish
this new ritual in prestigious
establishments in France and
Belgium.