Hennessy’s U.S. Performance Boosts LVMH Amid Tough Global ConditionsJuly 28, 2020
Moët Hennessy saw global sales decline 23% to €2 billion ($2.4b) in its fiscal first half ended in June, as the disruption of the on-premise and travel retail markets hampered its progress. Profit from recurring operations was down 29% to €551 million ($646m) for the first half.
The impact of the pandemic on restaurants and bars led to a 30% decline in Moët Hennessy’s Champagne volumes in the first half of the year. Still, the company highlighted new prestige cuvees for Krug and Dom Perignon and the recent addition of Provence-based Chateau d’Esclans, which has dramatically boosted its presence in the upscale rosé category.
While Hennessy volumes were down 15% globally, the Cognac brand has shown resilience in the U.S., the company said, particularly with its VS expression. Hennessy case volumes in IRI channels gained 21.5% in the year-to-date ending June 14th. This year, Hennessy is expected to easily surpass the 4-million-case mark in the U.S. for the first time ever, according to Impact Databank. Meanwhile, Moët Hennessy noted that it began to see an encouraging rebound in China in the second quarter.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.