Louis Vuitton 2008 Annual Report Download - page 24

LVMH010_2008_GB:Mise en page 1 24/03/09 11:11 Page 25
WINES
SPIRITS
CO GNAC
AND SPIRITS
Hennessy, the undisputed world lea-
der in cognac, continued to grow and
consolidated its market share in 2008.
For the first time in the history of the
brand, China ranked first among its
markets. Hennessy is strengthening its
leadership in the world of premium
spirits with the dynamic performance of
its V.S.O.P and X.O. categories. A new
advertizing campaign on the theme
"Dare to pursue your dream" was very
successfully launched.
Hennessy recorded very strong perfor-
mances in the other Asian markets.The
brand has reinforced its positions in the
highly competitive Taiwan market and,
thanks to in-depth work initiated seve-
ral years ago, it is achieving outstanding
growth in Vietnam.
In the United States, its second market,
Hennessy, still the category leader,
continued its value creation strategy,
backed by the advertising campaign
"Flaunt Your Taste." The brand reaffir-
med its historic ties with the African
American and Hispanic communities. It
became the official partner of the Latin
Grammy Awards, enhancing its rela-
tionship with the world of music in line
with its international communication
platform Hennessy Artistry. This program
of events deployed in more than thirty
countries brings together a broad va-
riety of musical genres and the different
ways of drinking Hennessy cognacs. It
gives new consumers an opportunity
to discover and appreciate the vitality
of the brand.
Russia confirmed its position as the
third pillar of Hennessy growth. In the
European countries, Hennessy maintai-
ned its exceptional market share in
Ireland.The brand is also growing rapidly
in Central and Eastern Europe and in
certain countries of Africa and the
Middle East.
As part of its policy of innovation, Hen-
nessy benefited in 2008 from the
launch of Diptyque, a limited edition
box intended for the travel retail seg-
ment, and from the measures taken to
modernize the packaging of its prestige
products, Richard Hennessy and Para-
dis, and to highlight their exceptional
character.
Belvedere vodka, thanks to its com-
munications efforts, won market shares in
the United States in a difficult economic
environment. Confirming its strong po-
tential, it continued its vigorous growth in
other countries as well. Canada, the Uni-
ted Kingdom,Australia, Mexico and conti-
nental Europe were its most dynamic
markets.
10 Cane rum continued its expansion in
America although Florida, its leading
market, was particularly impacted by the
economic situation. 10 Cane maintained
a high growth rate in other regions of the
United States and was successfully placed
in high-end establishments in Europe and
Australia.
Glenmorangie strengthened its stra-
tegy designed to make it the world lea-
der in single malt whiskies based on the
Glenmorangie and Ardbeg brands. This
strategy led the company to sell the Glen
Moray distillery along with other non-
strategic assets. A key highlight of 2008
was the very successful introduction of
the new line and the new visual identity
for the Glenmorangie brand. The brand
grew rapidly in Asia, extended its pre-
sence in Northern and Central Europe
and laid down the foundations for growth
in North America. The launch of Glen-
morangie Signet, designed as the brand’s
ultimate in luxury, was greeted with en-
thusiastic reviews.The many distinctions
bestowed on Glenmorangie in 2008 in-
cluded the title of Innovator of the Year
awarded by the prestigious Whisky Ma-
gazine. Ardbeg, the famous single malt
produced on the island of Islay, conti-
nued to win new enthusiasts around the
world. Limited editions and innovative
products, allied with original advertizing,
drove strong growth for the brand, which
was named "World Whisky of the Year
2008" by the Bible of Whisky.
During its first full year as part of the
LVMH Group, Wenjun benefited from
a reworking of its communications
strategy to capitalize on the essential
elements of its identity and its history,
which dates back more than 2,000
years to the Han dynasty in China. The
first product launched at the end of
2007 in Beijing is now widely distribu-
ted in southern China and has received
a very encouraging welcome. A new
ultra premium product, now in the final
development phase, will be launched in
2009.
O u tlo o k
Th e st ren gth o f th e bran d s o f t h e Win es
an d Sp irit s bu sin ess gro u p , th e excellen ce o f t h eir
p ro d u ct s an d t h e p o w erfu l d istribu t io n n et w o rk o f
M o ët Hen n essy w ill b e m ajo r asset s in 2 00 9 , in a
d ifficu lt co n t ext , m a rked by a so ft n ess in d em an d
an d by t h e w ish o f d ist rib u t o rs t o red u ce t h eir sto cks.
Wh ile it in t en sifies it s m an agem en t effo rt s an d
ad ap t s sales st rat egies m a rket b y m arket , t h e Win es
an d Sp irit s bu sin ess gro u p w ill co n t in u e to in vest
in it s best d rivers o f gro w t h , p ro fit ab ilit y an d gain s in
m arket sh a re. Th a n ks t o th e crea t ivit y t h at is co n t i-
n u ally cu lt ivat ed w it h in t h e bran d s, in n o vat io n (n ew
p ro d u ct s, t h e d esign o f ad d ed valu e p a ckagin g,
w ell-t arget ed p ro m o t io n al p ro gram s a n d o p erat io n s)
w ill b e o u r p rio rit y. Th is d yn am ic st rat egy aim ed at
st im u lat in g sa les in t h e sh o rt t erm w ill b e a st ro n g
accelerat o r fo r th e a ct ivities w h en t h e econ o m ic
sit u at io n im p ro ves.
22