The luxury group LVMH has long prided itself on owning some of the world's most prestigious wine and spirits brands. The cognac Hennessy, champagnes Moët & Chandon, Veuve Clicquot, Krug, and Dom Pérignon, as well as, more recently, the rosé from Provence Minuty, are the jewels of its Moët Hennessy division. These brands have cemented its position as the global leader in both cognac and champagne. While this was once a source of pride as bottles flew off the shelves, the division has become a source of tension as the cognac crisis and champagne slowdown have upended forecasts.

After an initial slowdown in 2023, Moët Hennessy – 34% owned by British group Diageo, the world's leading spirits company – reported 2024 revenue of €5.9 billion, down 11%. The trend continued into the first quarter of 2025, with another 9% decline in sales to €1.3 billion.

At first glance, the wines and spirits division might seem like a small contributor to the group led by Bernard Arnault. It accounts for just about 7% of total sales, far behind the fashion and leather goods powerhouse, and trailing distribution, watches and jewelry, and perfumes and cosmetics. But its share of operating profit is significant. Thanks to their high margins, cognac and champagne fit seamlessly into the world of luxury.

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