LVMH Annual Report

LVMH 2018 . W i n e s & S p i r i t s

Major s t rateg ic pr ior it ies

Pursue value creation strategy. Develop production capacities to ensure sustainable growth. Further improve efficiency of distribution in key markets.

2018 at a glance

Good momentum in China and significant growth in Europe and the United States, despite supply constraints The business group reaffirmed its leadership position by pursuing its value strategy and balanced geographic development. In the champagne business, prestige vintages performed remarkably well, while a firm price increase policy continued. A key highlight of the year was the exceptional harvest both in terms of quantity and quality. Hennessy cognac recorded good growth in the US market against a backdrop of tight supply; the Chinese market experienced strong momentum. Glenmorangie and Ardbeg whiskies grew rapidly. Our prestige wines obtained the best ratings. Outlook Excellence, innovation and careful attention to customers’ specific expectations in each country will continue to drive growth and value creation in the Wines & Spirits business group in the coming months. In an uncertain global context, all Maisons will rely on their highly dedicated staff, their drive for excellence and innovation, and the strong appeal of their brands to continue securing and sustainably building their long-term future. The diverse range of customer experience they have built up, thanks to the strength of their creative, high-quality product portfolios, will help them adapt to new lifestyles and win over the next generation of consumers. Moët Hennessy’s powerful and agile global distribution network is a major asset, enabling it to react to changes in the economic environment and seize every opportunity to increase market share. Increasing production capacity remains a top priority, along with a very active sourcing policy for all Maisons. As part of their long-term vision, all Maisons aim to step up their sustainability commitment to protect the environment and preserve their expertise.

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