Louis Vuitton 2006 Annual Report Download - page 26

The LVMHs Wines and Spirits business group
focuses its growth on the high-end segments of the
market. Number one in champagne worldwide,
LVMH also has a business in sparkling and still wines
from the most famous wine-producing regions. The
Group is the worlds leader in cognac with Hennessy
and, as a means of complementing that historic
business, is expanding its presence in the luxury
spirits area. The portfolio of brands is served by a
powerful international distribution network.
22 LVM H 2 0 0 6 WINES & SPIRITS
Wines & Spirits
In 2006, the vigor of the brands was illustra-
ted both by their growth in the key countries
and by rapid advances supported by invest-
ments targeting new markets. The distribution
network of Moët Hennessy, which is a major
competitive advantage, was further strengthe-
ned, especially in Russia, a market with high
potential.
CHAMPAGNE AND WINES
MOËT & CHANDON strengthened its global
leadership in 2006 by achieving solid perfor-
mance in its traditional markets, but also
double-digit growth in promising markets such
as Central Europe and China. A particularly
remarkable activity in Japan results from steady
investments made to promote the brand in this
high-potential market. The growth posted by
its pink champagnes  Rosé Impérial and Nectar
Rosé in the United States  confirms the unas-
sailable position of Moët & Chandon in this
very bullish segment.
The brand actively continued its Be Fabulous
advertising campaign in Japan and the United
States. On this occasion, New York hosted an
extraordinary event during which Moët &
Chandon lit up the Statue of Liberty, which
was celebrating its 120th anniversary in 2006.
DOM PÉRIGNON recorded some excellent perfor-
mances, in a context of price increases, in its
three large markets, the United States, Europe
and Japan. 2006 was marked by the internatio-
nal launch of Dom Pérignon Rosé 1996, which
was received with great enthusiasm. On this
occasion, Dom Pérignon teamed up with desi-
gner Karl Lagerfeld for the first Rosé adverti-
sing campaign in its history.
RUINART had a record year and reaped the
fruits of its strategy focusing on premium quali-
ties and prestige vintages. Their contribution in
2006 exceeded 40% of total revenue from the
brand. Ruinart continued to expand its
presence internationally, particularly in the
United States.
MERCIER, whose strategy is above all focused
on the French market, continued to develop its
presence in traditional restaurants, thanks to its
original program, Les Lieux de Toujours.
VEUVE CLICQUOT continued to advance in all
its key geographic zones and set new revenue
records in 2006. Veuve Clicquots buoyancy
was fostered by the gain in the famous orange
label Brut, the strong growth in its prestigious
La Grande Dame vintage and the success of the
international launch of Veuve Clicquot Rosé,
first in Paris, then in all the large capitals. The
brand reinforced its premium position through
price increases and confirmed the success of its
value creation strategy.
KRUGs targeted investments in its strategic
markets, its ability to enhance its unique posi-
tioning by its global advertising, and the praise
from the international trade press spurred
increased demand from consumers, which resul-
ted in dynamic growth in volume and value for
the brand.
ESTATES & WINES, which regroups the spark-
ling and still wines of Moët Hennessy since 2004,
posted a sharp increase in its financial results for
the third consecutive year. Basing its expansion
on a policy of excellence and innovation, all the
brands in the portfolio grew in their domestic
markets and internationally. The United States,
the worlds foremost market for wine in terms
of value, and Japan and England, countries that
are seeing continued growth in demand for fine
wines, experienced the strongest growth.
2006 enabled CHÂTEAU D’YQUEM to reaffirm
its status as the most prestigious Sauternes wine.
The 2002 vintage met with a remarkable recep-
tion when it was brought to market and the
excitement that specialists showed for the 2005
primeur was echoed by all buyers in all inter-
national markets. A prestigious party at the
Château, whose renovation was completed in
early 2006, kicked off the traditional week of
introducing the 2005 Primeurs.