Louis Vuitton 2006 Annual Report Download - page 29

In 2006, the brands of Glenmorangie Plc., which
the Moët Hennessy network continued to
promote, experienced excellent growth in volume
and value. GLENMORANGIE strengthened its
position in North America and Europe and expan-
ded its presence in the Asia-Pacific. ARDBEG, the
leading malt made on the Isle of Islay, increased
its value in all its high-priority markets.
PRODUCTS, BRAND IMAGE: EXTRAORDINARY
CREATIVITY
The many developments and initiatives in 2006
illustrate remarkably the strong culture of inno-
vation shared by the companies of the Wines
and Spirits business group.
Among the new products, of note is Veuve Clic-
quots launch of two rare 18 and 21 year old
vintages that come in a Cellar Box, a totally
innovative storage case; the creation of a half
bottle of Krug Rosé, an exceptional format for
a premium vintage; the launch of the Ruinart
Prestige Collection, which comes with a silver
spoon, created by the designer India Mahdavi.
Hennessy, a pioneer in the art of blends, has
launched a global program, The Art of Mixing,
offering 28 recipes for cocktails and long drinks
around its V.S and V.S.O.P. products.
A lot of work has also gone into packaging: the
Moët & Chandon product line, Dom Ruinart,
Hennessy V.S, V.S.O.P Privilège and X.O have
all unveiled a new look.
Limited editions, designs and events with strong
value added are ways for the brands to express
their creative vitality. Moët & Chandon had a
remarkable success with its Flowers which,
in 2006, took the colors of Rosé Impérial, or
the Star of the Night bottles and grand
flacons encrusted with Swarovski crystals for
New Years Eve celebrations. In line with the
audacious creations of Veuve Clicquot, the limi-
ted edition designed for La Grande Dame 1998
is signed by Andrée Putman.
OUTLOOK
In 2007, the brands of the Wines and Spirits
business group will continue their value stra-
tegy and their policy of innovation.
Moët Hennessy will continue to expand its
global distribution network and will strengthen
its international presence, especially in Russia,
China and Vietnam. Supported by ambitious,
experienced staff, armed with prestigious and
growing brands, the business group has the
best assets to continue profitable growth
and to strengthen its leadership in the
market of prestigious wines and spirits.
In Asia, 2006 saw strong growth, especially in
China, the worlds largest market for all high-
quality products: V.S.O.P, X.O and the Prestige
line. In Japan, where the market for brown
spirits is still depressed, Hennessy maintains
its value strategy centered around the X.O and
the Prestige line, which are experiencing double-
digit growth in volume.
Confirming its potential, Russia is positioned
as the third pillar of growth for Hennessy after
the United States and China. Hennessy V.S
cognac is maintaining its exceptional market
share in Ireland.
2006 saw the launch of Hennessy Artistry, a
global advertising plan that is exceptional
because of its concept and media impact. This
program will be conducted over three years.
In 2006, BELVEDERE vodka experienced steady
growth in the United States and accelerated its
entry into other countries. The arrival of a new
management team enabled it to reinforce its stra-
tegy and launch a new advertising campaign.
CHOPIN vodka revised its packaging and set up
an advertising program appropriate to speed up
its growth.
The brand 10CANE, first luxury rum produced in
Trinidad, continued to build up a selective
presence in the United States. Its distribution
will be expanded to the United Kingdom, France
and the Caribean in 2007.
COGNAC AND SPIRITS
HENNESSY, the worlds uncontested leader in
cognac, increased its growth in volume in 2006.
That vigor was seen in all its products and its
superior qualities posted excellent gains. The
brand performed strongly in its strategic mar-
kets, the United States and China especially,
two markets where Hennessy is benefiting from
significant advertising investments.
In the United States, the companys leading
market, Hennessy strengthened its position as
leader in terms of volume and value in the
cognac category. The brand relied on several
growth vectors. It intensified the promotion
operations at the selective points of sale and
the innovative programs based on the creation
of a tasting ritual in high-end establishments.
It expanded its consumer base thanks to increa-
sed advertising and promotional resources. A
large-scale advertising campaign on television
and in the press in the United States entitled
Pure Character increased the visibility of
Hennessy V.S. cognac. The involvement of
North American teams helped in carrying out
the operations.
WINES & SPIRITS LVM H 2 0 0 6 25
Dom Pérignon
by Marc Newson
In 2006, Dom Pérignon enlisted
Marc Newson, one of the most
talented designers of his
generation – named “Designer
of the Year 2006” at Art Basel
(Miami) –, who conceived
a modern interpretation
of the iconic Dom Pérignon
bottle. In a limited edition,
Marc Newson designed
a sculptural ice bucket,
intended for collectors and
fans of contemporary design.