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Fashion Network
03-05-2025
- Business
- Fashion Network
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France's Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Time of India
03-05-2025
- Business
- Time of India
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13 per cent at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France's Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10 per cent first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20 per cent charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Reuters
02-05-2025
- Business
- Reuters
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
PARIS, May 2 (Reuters) - LVMH ( opens new tab will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. STAFF REDUCTION Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau ( opens new tab and Brown-Forman (BFb.N), opens new tab cut jobs in the United States at the start of this year, while France's Pernod Ricard ( opens new tab, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Yahoo
02-05-2025
- Business
- Yahoo
LVMH's revival plan for Moet Hennessy pins hopes on big name brands
By Mimosa Spencer and Dominique Patton PARIS (Reuters) -LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division's CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters. Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth's performance. Revenue has been falling and operating profit plunged by over a third last year. Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division's deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate. "Today, we have too heavy a construction," said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February. "We have been planning on purchases for decades ... And most of the time, we've been aiming at developing in many geographies at the same time, which is, in my view, a mistake," added Guiony, flanked by Arnault. Guiony said he would "make some changes" after reviewing the division's brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place -- however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum. "We need to focus them much more on where they have a chance to succeed," he said. STAFF REDUCTION Guiony also said that the division's structure had been built for "a much larger size of business", outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently. LVMH's job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. "I find it very appropriate that the new leadership is looking at cutting costs to support profits - this is the right thing to do," said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand. Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France's Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels "is not going to happen anytime soon," added Guiony, citing the division's nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April. "It's particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react," he said. "Today we don't know." U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead. Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether. "It's never been a plan of our family, of our group, it's not a plan today," said Arnault.
Yahoo
17-04-2025
- Business
- Yahoo
Pernod Ricard's Q3 sales miss forecasts
LONDON (Reuters) - Pernod Ricard on Thursday reported a 3% decline in third-quarter sales, missing forecasts as tariff uncertainty rocks the already-struggling spirits sector. Analysts had expected Pernod, the world's No. 2 Western spirits maker, to report a 2% decline in organic net sales in the three months to end-March. Pernod said its performance in the quarter was affected by customs clearance procedures and a production interruption in India, the late timing of Easter, tariffs affecting cognac sales in China and a sharp decline in its travel retail division due to the suspension of duty-free sales of cognac there. The environment "remains challenging and very fluid with regard to tariffs", Pernod's statement said, adding that its full-year guidance remained unchanged. Pernod, which makes Jameson Irish whiskey and Mumm champagne, already cut its 2025 outlook as well as growth guidance for 2027-2029 citing geopolitical uncertainties like tariffs. U.S. efforts to remake global trade relationships have plunged the entire spirits sector into uncertainty. Pernod and other cognac makers separately face tariffs in China. Escalating trade tensions also threaten consumer sentiment at a time when appetite for pricey liquors is already under pressure. Sign in to access your portfolio
