Luxury group LVMH’s wines and spirits revenue soared 26% last year, thanks to reopening of on-trade business in the US, Europe and a rebound in Asia.
The group’s wines and spirits division has 23 houses including Moët & Chandon, Krug, Dom Perignon, Veuve Clicquot, Hennessy and Château d’Yquem etc.
The Wines & Spirits business group recorded organic revenue growth of 26% in 2021 compared to 2020 and 9% compared to pre-pandemic 2019, according to the company’s latest annual report.
Champagne volumes were up compared to 2019. Growth was particularly strong in the US and Europe, which benefited from the reopening of restaurants and the gradual recovery in regional tourism.
The year marked the integration, from the third quarter onwards, of the prestigious Champagne House Armand de Brignac founded by rapper and entrepreneur Jay-Z, in which LVMH now holds a 50% stake.
Hennessy cognac performed well with an increase in volumes compared to 2019, despite supply constraints. China and the US experienced a strong rebound. Within the flourishing market for high-end rosé wines, Château d’Esclans in provence which was bought by the group in 2019 also enjoyed rapid growth and Château Galoupet continued its conversion to organic viticulture.
Bernard Arnault, Chairman and CEO of LVMH, said: “LVMH enjoyed a remarkable performance in 2021 against the backdrop of a gradual recovery from the health crisis. The Group’s record results could not have been achieved without the efficiency and exceptional ability of our teams to adapt and notably to remain connected to our customers, continuing to inspire dreams, despite the crisis.”
Looking forward, the luxury group is bullish on the prospects of 2022.
The Group will continue to pursue a strategy focused on developing its brands building on strong innovation and investments as well as a constant quest for quality of their products, of their desirability and of their distribution.
“Despite the uncertainties that remain at the start of this new year, which continues to be disrupted by health concerns, we approach 2022 with confidence and are convinced that LVMH is in an excellent position to further strengthen its lead in the global luxury market,” adds Arnault.
Overall, across different departments – Fashion, Jewellery & Watches, Cosmetics & Perfumes, the group recorded revenue of 64.2 billion euros in 2021, up 44% compared to 2020 and up 20% compared to 2019.
