Louis Vuitton 2005 Annual Report Download - page 27

THE WINE AND SPIRITS GROUP ADDS TO ITS PORTFOLIO OF
BRANDS AND STRENGTHENS ITS DISTRIBUTION NETWORK
In early 2005 Moët Hennessy acquired Glenmorangie plc., a company with
three international brands of very high-quality Scotch malt whisky,
Glenmorangie, Glen Moray and Ardbeg. Moët Hennessy also acquired
operational control of the Millennium company, which will boost the global
expansion of the vodka brand Belvedere.
The Wines and Spirits business group continued to strengthen its global
distribution network by creating new subsidiaries in Europe and continuing the
integration of the network in the United States through the creation of Moët
Hennessy USA. In the United States, all brands are now benefiting from
the attention and strength of a dedicated team at the American distributors.
STRONG IMPETUS FOR INNOVATION The capacity for innova-
tion, which is highly cultivated by the LVMH wine and spirit brands since it
is a key factor in growth, was particularly evident in 2005.
This can be seen for instance in the success of the seasonal Moët & Chandon
limited edition offerings in partnership with Swarovski—Moët Flower in the
spring, Moët Summer in the summer and Moët Crystallised at the end of the year—
giving the brand a great deal of visibility in the principal image-creating points
of sale worldwide.
Faithful to its creative core and its daring image, Veuve Clicquot launched
the Clicquot Traveller, an elegant isothermal bag containing a bottle of Brut
Carte Jaune and two flutes. The house also modernized the presentation of its
vintages and continued its partnership with Pucci for La Grande Dame.
For its Prestige range, Hennessy is devising innovative ways of enjoying the
experience based on the creation of a tasting ritual at select points of sale
and high-end establishments. An exceptional launch was reserved for the
limited edition of Private Reserve 1865.
INCREASED INFLUENCE Communications efforts aimed at boosting
the influence of the brands of the business group were continued throughout
the year.
Moët & Chandon’s communications strategy was redeveloped around a
new global positioning at the international level that exploits the theme
“Be Fabulous”, a strong expression of the brand values of flair, leadership and
universality. Launched in late 2005 in Europe and in Asia, the first global
communications campaign for the brand will be extended to the United States
and Japan in early 2006.
For the launch of the Dom Pérignon 1998 vintage, Karl Lagerfeld was commis-
sioned to conduct the first global communications campaign for the brand,
which was presented at a global launch event in June 2005 in New York. Dom
Pérignon’s new image gives it all-round visibility: an international publicity
campaign, exhibitions in the shop-windows of wine merchants and department
stores, a dedicated website, reporting of the event in the international press.
The effectiveness of Hennessy’s publicity campaigns has helped greatly to
stimulate growth. In the United States, a diversified high-quality promotional
program has been implemented. In China, the brand supports V.S.O.P
Privilège, its principal vector for growth, by making major marketing invest-
ments, including a strong publicity campaign launched during the Chinese
New Year celebrations.
OUTLOOK In 2006, the Wines and Spirits business group will continue
unabated with its value strategy. This strategy will continue to rely most
notably on a constant willingness to train staff, major publicity and promo-
tional investments and a policy of sustained prices. An emphasis on innova-
tion and brand image reinforcement will be maintained in strategic markets.
The portfolio of brands, distributed by teams with proven expertise, will
strengthen LVMH’s leading position in the world of luxury wines and spirits.
PASSIONATE ABOUT CREATIVITY
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LVMH 2005 WINES AND SPIRITS
Moët Hennessy launches
aluxury rum in the United States
Moët Hennessy’s appetite for creativity
and innovation is most notably expressed
through the launch on the US market
of a new ultra-luxury product:
10 Cane, an artisanal rum made from
the first press of sugar cane. 10 Cane
is produced on the island of
Trinidad, an ideal location due to
the quality of its volcanic soil and
its perfect sunshine. It benefits
from Moët Hennessy expertise
at each stage of production.
Its ambition is to be the world’s
best rum. 10 Cane was launched
in New York in the spring of 2005
and then in the rest of North
America.
La Grande Dame
adorned in luxury
and sensuality
Following the success of the limited edition
of La Grande Dame clothed by Pucci in 2004,
Veuve Clicquot recreated this event by continuing
this partnership. In 2005, an innovative,
sophisticated and sensual item was created:
acombination with the colors of the design
specially created by Pucci for the 1996 vintage
of La Grande Dame and perfectly adapted to fit
the particular curves of the bottle. This isothermal
“sheath” keeps the bottle at tasting temperature
for approximately two hours. This beautiful item
comes with a fabric sleeve that protects and
complements it.