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Who are they? Huge luxury goods conglomerate, consisting of 70 houses across wines & spirits, fashion, cosmetics, and specialist retailing – it owns the two biggest selling Champagne brands in the world
(Moët & Chandon and Veuve Clicquot) as well as several other houses.
- headquarters in Paris,
- Dom Pérignon (Epernay) oVintage champagnes only and viewed as M&C͛s prestige cuvee (although obviously other prestige cuvees in the LVMH range). First Champagne to be marketed as prestige cuvée (their 1921 vintage, released in 1936) oVintage Biggest selling of DP At least 8 years in cellar oP2 (P3) Second (or third) release of celebrated vintages that have been released previously – for example: 2000 Vintage was released in 2008, and P2 2000 has just been launched in 2017 ͚P͛ refers to different plénitudes these wines experience, with different windows of excellence in their maturation. The P series wines have now replaced Oenotheque brand Wines have longer time on lees Celebrity brand ambassador assigned to these launches (Christoph Waltz for P2 2000) oRosé Also has P2 and P3 wines
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Ruinart (Reims) oEmphasis placed on delicacy and their Chardonnay grapes, concentrated in
Côte des Blancs
and Montagne de Reims, are key to this o͞R͟ de Ruinart 40% Chardonnay oRuinart Blanc des Blancs oRuinart Rosé oDom Ruinart Vintage A blanc des blancs Champagne oDom Ruinart Rosé Vintage
Moët & Chandon (Epernay) oBiggest selling brand in the world, with 1 in every 10 bottles of champagne sold being from M&C, and selling at twice the rate of nearest competitors.
Share of US market can reach up to 50%. Dom Pérignon viewed as its prestige cuvee, although a separate brand. Demonstrated product innovation (e.g. Ice) and targeted sales (Réserve). Red grapes dominant in various NV blends (Chardonnay between 10-30% for these, although can be higher for vintages).oImpérial oRosé Impérial oIce Impérial Designed to be served over ice (marketed as the only such Champagne) 45g/L dosage oIce Rosé Impérial Again, to be served over ice 38g/L dosage oGrand Vintage oGrand Vintage Rosé oNectar Impérial 45g/L dosage oRéserve Impérial Exclusive to travel retail Veuve Clicquot (Reims) oPinot Noir important to house style, especially those grown around Bouzy where they have strong holdings.First rosé
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Champagne made by VC, in 1818.oBrut Yellow Label oExtra Brut Extra Old Includes very old reserve wines (back to 1988) and ones with particular freshness and structure 3g/L oRosé oRich To have over ice with other ingredients, inspired by cocktails 60g/L oRich Rosé As above oDemi-Sec 45g/L oVintage oLa Grande Dame From 8 Grand Cru villages oLa Grande Dame Rosé Krug (Reims)
oOnly produces prestige cuvées. Barrel fermentation for all wines in old 205L barrels. Introduced label codes with disgorgement dates. oGrand Cuvée 120+ wines go into blend, from more than 10 different vintages, with additional 6 years ageing in cellar oRosé oVintage oClos du Mensil Single vineyard (2ha), vintage, Chardonnay only oClos D͛Ambonnay Single vineyard (0.7ha), vintage, Pinot Noir only oCollection oLate release of specific vintages, 10 years after first release
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Mercier (Epernay) oBrut oBrut Rosé oDemi-Sec oBrut Réserve oBlanc de Noirs (Chandon produces sparkling wine in Argentina, California, Brazil, Australia, China, India; Cloudy Bay produces Pelorus in Marlborough) Company info
Historical background o1743: M&C house founded o1960: Chandon established in Argentina o1962: M&C shares quoted on Paris stock exchange o1963: bought Ruinart o1968: bought shares in Christian Dior perfumes o1970: bought Mercier o1971: merged with Hennessy in Cognac to form Moët Hennessy o1973: Chandon established in California o1985: Chandon established in Australia o1987: Cava assets in Spain, but later sold to Freixenet o1987: merged with Louis Vuitton to form LVMH (gaining Veuve Clicquot in the deal) o1999: bought Krug oAt one point owned Lanson, stripped it of vineyard holdings, then sold on
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Ownership and structure oPublically traded company (Paris stock exchange) oLuxury goods conglomerate of 70 different houses across different sectors oFamily run, with Bernard Arnault current CEO, but decentralised organisation (across individual houses, such as Ruinart, and its larger sectors, such as wines & spirits) to allow different branches of conglomerate to act with fair degree of independence. Houses͛ families may still have a role at an individual level, for example: Olivier Krug is still on Krug tasting committee and is Director of the House. Still, resources will be shared across group – for example, this can be seen through DFS͛s travel luxury retailing, stocking goods from across LVMH group.
Why are they significant or important? What makes them stand out (e.g. production/style/range of brands/marketing)? Market share/volume and importantmarkets/trends. Have they been in the trade press recently? Why? Response to local challenges (e.g. land ownership/labour issues). Future plans or vision. oThe biggest Champagne producer in the world, across 6 brands and many labels oM&C biggest selling Champagne brand in the world; Veuve Clicquot 2nd biggest oEurope, US, Asia are key markets oLVMH group had €37.6bn revenue in 2016 (5% increase) https://www.thedrinksbusiness.com/2017/01/record-2016-for-lvmh/oGroup employed 134,000 employees in 2016 o2016 profits hit €7bn oWines & spirits one of the main drivers, with its profits up 10% oWines & spirits sales volume up 3% oLVMH expecting growth in 2017, emphasising continued excellent quality of product, innovation, entrepreneurship o2017: launched online shop Clos19 (run by Stephanie Watine-Arnault, the niece of CEO Bernard) stocking all LVMH drinks products, accessories, and selling experiences. Looking to capitalise on growing online retail sector. Can make UK delivery within 24 hours. Targeting luxury gifting and hosting retail market, giving serving advice (such as glassware and cocktail-making) as well. Aims for it to account for 4% of LVMH sales in UK by 2022, and will launch this website in Germany too https://www.thedrinksbusiness.com/2017/05/moet-hennessy-launches-drinks-retailer-clos19/oRecent innovation shown by launch of M&C Ice and Veuve Clicquot Rich ranges, but really this is a company founded on renowned prestige and high quality, seen in the products listed above and the prices they sell for. Similar approach to still wines, wineries outside France, and their spirits range. oIn a region notoriously hard for expanding vineyard holdings, LVMH has responded by merging and acquiring houses, and sometimes selling these on after stripping many of their assets (such as Lanson) oHas recently run pop-up Moët Academy in London with consumer engagement, immersive experiences, tastings, virtual tours, and (in 2016) previewing soon-to-be-launched 2008 vintage roséhttp://www.thedrinksbusiness.com/2016/02/moet-pop-up-school-returns-to-london/CommentsActivityMGWrite a comment
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