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LVMH 2011
Wines & Spirits
15 / 68
CONTINUING SMOOTH
AND SUSTAINABLE GROWTH
— What sort of year did the
Wines & Spirits sector have in 2011?
It was a good year, which confirmed the
upturn that began in 2010 after two years
of declining sales. The recovery was
fuelled by high demand and actually sur-
passed our forecasts. Champagne exports
increased, particularly to the United States
and emerging markets. Cognac had a
record year with outstanding sales in Asia,
a region where consumers have a particu-
lar appreciation for high quality. But
beyond the general trend, our own brands
were boosted by our value strategy, which
they have constantly pursued. In addition
to an increase in volume, improvements in
the product mix (focus on vintage and
prestigious quality) and higher prices con-
tributed to our excellent results.
— Are you happy with the momentum
of wines being developed outside France?
Here again, our eorts have focused on
upscale brands and products. Still wines
achieved excellent results in their key
markets and our sparkling wines under
the Chandon label made significant
inroads, notably in traditional regions
such as Australia. Two new initiatives will
strengthen Chandon’s leadership in its
segment: we are about to launch the first
bottles produced in India, in the region of
Maharashtra, and have just embarked on a
new venture in China. We have found
some land in north-west China that is
ideal for the type of wine-growing we
practice. Within two years we will see
Chandon wines produced in China. The
potential is huge.
— What are the main drivers of your
value strategy?
Firstly, innovation, which was particu-
larly apparent in 2011 with the global
launch of Moët Ice Impérial, the first
champagne to be consumed over ice, the
creation of Hennessy Classivm, targeted at
Chinese people aged between 20 and 30,
and the latest Glenmorangie – Pride 1981 –
an exceptional 28-year-old malt whisky.
And secondly, communications, which
have been finely targeted to spotlight the
high quality, creativity, boldness and sin-
gularity of our brands: major events such
as those associated with the Veuve Clicquot
Season, prestigious sporting competitions,
design or gastronomy events, and excep-
tional creations such as the film made by
David Lynch for Dom Pérignon. These are
just two examples.
— How do you view the future?
With enthusiasm. We are developing
products of exceptional quality that are
increasingly sought throughout the world.
We want to strengthen our leadership in
this segment of the market, which is very
promising over the long term. We are
pursuing an ambitious strategy that
includes the requirement to produce high
volumes of Champagne and Cognac. Our
goal is to continue to grow smoothly and
sustainably.
Christophe Navarre
President of the Wines and Spirits business group
2011 SALES VOLUMES
CHAMPAGNE:
55.5 MILLIONS OF BOTTLES
COGNAC:
63.5 MILLIONS OF BOTTLES
REVENUE
(EUR millions)
2011
2010
2009
3,524
3,261
2,740
PROFIT FROM
RECURRING OPERATIONS
(EUR millions)
2011
2010
2009
1,101
930
760
OPERATING INVESTMENTS
(EUR millions)
2011
2010
2009
159
83
98
8% France
22% Europe
(excl. France)
23% United States
6% Japan
26% Asia (excl. Japan)
15% Other markets
REVENUE BY GEOGRAPHIC
REGION OF DELIVERY (in %)