Moët Hennessy’s Full-Year Sales Rise 6% In 2019, Topping $6 BillionJanuary 29, 2020
Moët Hennessy posted full-year net revenues up 6% to €5.6 billion ($6.2b) in 2019, with profit from recurring operations also up 6%, to €1.7 billion ($1.9b), driven by premiumization in its Champagne unit and ongoing progress for Hennessy in the global market.
The company said it saw “solid growth” for Hennessy Cognac in the U.S., which propelled its Cognac & Spirits division to a global increase of 7% to €3.1 billion ($3.4b), up from €2.8 billion ($3.1b) a year earlier. Single malt Scotch labels Glenmorangie and Ardbeg also contributed to those gains, with the Cognac & Spirits unit delivering profit up 6% to €1 billion ($1.1b) overall. According to Impact Databank, Hennessy increased an estimated 6% to 3.9 million cases in the U.S. last year, while advancing by 5.5% globally, to 8.2 million cases.
Meanwhile, Moët Hennessy’s Champagnes & Wines division posted revenues up 4% to €2.5 billion ($2.8b) for the year, with profit rising 6% to €690 million ($760m), despite flat volumes from the company’s Champagne stable, which includes Moët & Chandon, Veuve Clicquot, Dom Pérignon, and others. Veuve Clicquot led the Champagne & Wines unit’s progress in the U.S. in IRI channels in the 52 weeks through December 29, with volume up 6.5%, while Moët & Chandon was roughly flat and California sparkler Domaine Chandon contributed 9.6% growth.
Late last year, Moët Hennessy boosted its still wine portfolio with the acquisition of a 55% controlling stake in luxury rosé player Chateau d’Esclans for an undisclosed sum. The d’Esclans purchase gives the group a leading position in the upscale rosé segment in the U.S. The Provence-based winery’s range, led by Whispering Angel, surpassed half a million cases in the U.S. last year.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.