LVMH’s wines and spirits division returned to growth in the first half of 2026, as improving demand for Hennessy Cognac in China and strong sales of Cloudy Bay helped lift organic revenue by 5%.
The recovery came after a difficult 2025, when weak global spirits consumption and falling Chinese demand for Cognac weighed heavily on the division. While industry participants cautioned that China has yet to experience a broad-based recovery, LVMH’s latest results suggest conditions are beginning to improve in one of its most important markets.
LVMH’s wines and spirits division generated revenue of €2.60 billion (US$3 billion) in the first half of 2026. Revenue was broadly unchanged on a reported basis but rose 5% organically after excluding currency movements and other factors.
Profit from recurring operations reached €582 million (US$670 million), an organic increase of 11%.
Champagne and wine revenue rose 7% organically to €1.42 billion (US$1.64 billion), while revenue from Cognac and other spirits increased 3% organically to €1.17 billion (US$1.35 billion).
Sales volumes also increased across every major category. Champagne shipments rose 2.4% to 25.8 million bottles, while Cognac volumes increased 3.5% to 38.4 million bottles. Sales of other spirits advanced 8.3% to 10.4 million bottles, and still and sparkling wine volumes grew 2.5% to 32.6 million bottles.
The results contrasted with 2025, when declining Cognac demand in China and sluggish spirits consumption worldwide pushed the division’s annual revenue lower.
Asia gains a greater share of sales
The United States remained LVMH’s largest market for wines and spirits, accounting for 32% of divisional revenue. Its share, however, fell by three percentage points from the first half of 2025.
Europe, excluding France, and Asia, excluding Japan, were tied as the second-largest markets, each contributing 19% of revenue. Asia’s share increased by two percentage points from a year earlier, reflecting stronger demand in China, particularly for Cognac.
France accounted for 8% of revenue, Japan for 6% and other markets for the remaining 16%.
Hennessy benefits from improving Chinese demand
LVMH attributed the organic growth of its Cognac and spirits business partly to recovering demand for Hennessy in China and strong sales during the Lunar New Year period.
Limited-edition Hennessy products released for the holiday continued to perform well in China and elsewhere in Asia, the company said.
In the United States, Hennessy also launched a range of ready-to-drink cocktails featuring the classic V.S bottle design as it sought to broaden the brand’s appeal and expand into new drinking occasions.
Chinese customs figures point to a sharp rebound in the broader brandy market. China imported 11.92 million litres of brandy worth US$383 million during the first half of 2026. Volume increased 44.8% from a year earlier, while value surged 83.9%.
French Cognac brands have long dominated China’s imported brandy market, with Hennessy, Martell and Rémy Martin among its leading players.
However, the increase partly reflected a low comparison base in 2025. China’s Ministry of Commerce conducted an anti-dumping investigation into European brandy during 2024 and 2025, prompting some importers to build inventories in advance in 2024 and reduce purchases the following year.
“The market did not experience a particularly evident or broad-based recovery in the first half of 2026,” one brandy importer told Vino Joy News on condition of anonymity. “The growth in the data was largely driven by the low base during the same period last year.”
Cloudy Bay records strong growth in China
LVMH also highlighted the performance of New Zealand wine producer Cloudy Bay in China.
One of the best-known Marlborough Sauvignon Blanc brands, Cloudy Bay has long held a prominent position in China’s premium white wine market and helped build awareness of the broader category.
China imported 3.6 million litres of New Zealand wine worth US$23.53 million during the first half of 2026, as we have reported. Volume increased 59.9% from a year earlier, while value rose 18.6%.
Growing Chinese demand for white wine, particularly fresh and aromatic styles such as Sauvignon Blanc, has made Cloudy Bay an increasingly important contributor to LVMH’s wine portfolio.
LVMH continues investing in its brands
Despite maintaining tight cost controls, LVMH continued to invest in its wines and spirits brands during the period.
Moët & Chandon entered its second season as the official Champagne partner of Formula One. Dom Pérignon released three wines – the 2017 vintage, the 2010 Rosé and the 2008 Plénitude 2 – and continued to build visibility through artistic collaborations.
Veuve Clicquot, Ruinart and Krug also maintained market attention through new releases and presentations of rare and library wines.
In still wine, LVMH’s Provence rosé portfolio continued to expand. Minuty, Château d’Esclans and Château Galoupet gained market share through further international growth.
LVMH said its wines and spirits division would maintain a cautious strategy for the remainder of the year, combining cost controls with continued investment in brand building, product innovation and consumer engagement.
The group said it would draw on its winemaking expertise, premium portfolio and global distribution network to strengthen its position in the high-end drinks market.
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