Latest news with #MoetHennessy
Daily Mail
16-05-2025
- Entertainment
- Daily Mail
Emma Corrin showcases their quirky style in a fringed red skirt as they attend the Moët Hennessy party weeks after split from Rami Malek
Emma Corrin showcased their quirky sense of style on Thursday as they attended the star-studded Moët Hennessy Dom Pérignon Revelations dinner party at Tate Modern in London. The My Policeman star, 29, cut an edgy figure as they modelled a red fringe tassel skirt which was worn over a black micro skirt and leggings. Emma teamed the skirt with a white ribbed T-shirt featuring a pink flower motif and pointed black heels. The film star kept the rest of their look simple, ditching further accessories save for simple silver hoops and a delicate necklace which was tucked into their top. Emma appeared in good spirits as they posed at the event which was attended by the likes of Alicia Vikander and Zoë Kravitz. Emma's outing comes after the Mail on Sunday revealed last month that they and Rami Malek quietly split up after a love affair lasting nearly two years. The My Policeman star, 29, cut an edgy figure as they modelled a red fringe tassel skirt which was worn over a black micro skirt and leggings Sources said Emma, who found fame and won a Golden Globe after playing Princess Diana in The Crown, has been separated 'for some time' from Rami, 43, who got an Oscar for his turn as Freddie Mercury in Bohemian Rhapsody. The couple have not commented on their separation and, despite several appearances together on the red carpet at premieres, they have been notoriously private about their relationship. In a magazine interview last May, Corrin even declined to speak about their relationship. Malek was equally vague, describing Corrin as 'fascinating' and once revealing that Corrin cooked him a surprise Thanksgiving dinner, 'trimmings and all', that 'blew him away'. Corrin – who came out as queer in 2021 and identifies as non-binary, using the pronouns they/them – said the 'vitriol' targeted at their gender identity was 'worse than I anticipated', adding: 'Even though we like to think we're in a progressive society, a lot of what we're seeing is increasingly a step back.' They were first spotted together at a Bruce Springsteen concert in London in July 2023, just a few months after Rami had broken up with Lucy Boynton, 31, his co-star in the Queen biopic. As their romance developed, they were seen kissing at a restaurant in Margate, Kent, where Emma owns a home. They reportedly moved in together after buying a £5million mansion in Hampstead, north London. The couple have not commented on their separation and, despite several appearances together on the red carpet at premieres, they have been notoriously private about their relationship [pictured in February 2024] It is not clear whether Emma or Rami, who went on to play Bond villain Lyutsifer Safin in No Time To Die, still live in the house or plan to sell it. Emma is busy filming the Netflix adaptation of Pride And Prejudice, playing heroine Elizabeth Bennet opposite Slow Horses actor Jack Lowden as Mr Darcy. Rami is in just-released spy drama The Amateur, playing a CIA decoder out for revenge after terrorists kill his wife, and is also set to appear in Nuremberg, a drama about the Nazi war trials, as US psychiatrist Douglas Kelley. The film also stars Russell Crowe, Michael Shannon and One Day star Leo Woodall.
CNA
16-05-2025
- Business
- CNA
Inside Moet Hennessy's crisis: Dubious deals, soaring prices and hubris
Moet Hennessy, the wine and spirits empire owned by France's LVMH, went from generating €1 billion (US$1.12 billion; S$1.45 billion) in cash in 2019 to burning through €1.5 billion last year, according to documents seen by the Financial Times, as aggressive price increases and an ill-fated acquisition spree hit the luxury group's drinks business. The group behind Dom Perignon champagne and Hennessy cognac has been hard hit by a global downturn in sales of alcoholic drinks. But people familiar with Moet Hennessy's operations say strategic decisions made under the leadership of former chief executive Philippe Schaus, who left the group at the start of 2025, exacerbated its problems. These included a determination to maintain profitability by increasing prices, a hit-and-miss series of deals, and a lossmaking push into direct-to-consumer sales, according to several sources with knowledge of the business and documents reviewed by the Financial Times. Moet Hennessy has been a cash cow for LVMH for years. But in a presentation in February last year, reviewed by the Financial Times, senior managers at the wine and spirits group were issued with stark warnings — 'Need to save cash!' — as budgets came under strain. When a surge in sales during the pandemic-era luxury boom began to go into reverse, management did not respond quickly enough to the ensuing downturn, said one source close to the company. 'It got to a point where it looked like Moet Hennessy could do no wrong,' the person said. 'That's what got them.' The consequences of Moet Hennessy's struggles became clear this month, when the division's newly appointed executives told staff that about 1,200 jobs would be cut as part of a cost-cutting drive, and warned that sales would not bounce back soon. In April, LVMH reported that its wine and spirits sales fell by 9 per cent on an organic basis in the first quarter, compared with a 3 per cent decline across the business as a whole. Moet Hennessy's profits from recurring operations dropped by 36 per cent to €1.35 billion last year. But the spirits business had already been comfortably LVMH's worst-performing division, in terms of sales growth, in the past two years. Leadership changes have followed poor performance. In February, Jean-Jacques Guiony, LVMH's former chief financial officer, was appointed chief executive of Moet Hennessy, replacing Schaus. Alexandre Arnault, son of controlling shareholder Bernard Arnault and a former senior executive at jeweller Tiffany, was installed as Guiony's deputy. Armed with a mandate to turn around performance, the new executives are reviewing the division's portfolio, as well as underperforming ventures, such as its direct to consumer retail business. Its private sales business is also being brought directly under Alexandre Arnault's purview. LVMH and Moet Hennessy declined to comment. Among the issues Guiony addressed in a presentation to staff this month was the extent of recent price rises. He acknowledged that prices had been pushed 'quite high' and that was 'difficult to swallow' for some. Sources told the Financial Times that retailers had begun to balk at the increases Moet Hennessy pushed on to them, after double digit percentage price rises in both 2021 and 2022. Prices across the portfolio had risen by well over a third on average since 2019, the people said, adding that maintaining profit margins had become a mantra internally — even as some managers raised concerns it was unsustainable. In a presentation last year, seen by the Financial Times, Moet Hennessy's then global head of distribution, Jean-Marc Lacave, said it was 'critical' to maintain operating profit margins, telling staff he 'would prefer to do less business and be above 30 per cent.' However, Moet Hennessy reported profit margins of 23 per cent last year. Despite charging far higher prices, sales fell close to 2019 levels, implying substantial volume declines. Lacave left the group at the start of the year. The spirits group's struggles came as it was digesting a series of acquisitions made under former boss Schaus. They were designed to reduce Moet Hennessy's dependence on cognac and champagne, which made up more than 80 per cent of sales at the time. Schaus has held a variety of senior roles at LVMH and became one of Bernard Arnault's close advisers in more than two decades with the group. In 2012, he joined the executive committee and was appointed Moet Hennessy's chair and chief executive five years later. A near €2 billion acquisition spree included the 2021 purchase of a 50 per cent stake in Jay-Z's champagne brand Armand de Brignac — a deal that was, coincidentally, sourced by Alexandre Arnault, who is close with the American rapper — as well as the purchase of Provencal rose brand Minuty in 2023 and Napa Valley winemaker Joseph Phelps in 2022. Schaus — who declined to comment for this story — also signed off on launches of new products, including Volcan tequila and Eminente, a Cuban rum brand. LVMH typically manages most of its dealmaking through a central team that reports to the chief financial officer. But Schaus and his team were given wide discretion to make decisions on deals, particularly smaller transactions, according to two people with knowledge of the set-up. However, that was disputed by another person familiar with the matter, who said any significant acquisition went through LVMH's normal channels. Several deals have so far failed to deliver returns. One source with knowledge of their performance said that, with the exception of the Minuty acquisition and a handful of other deals for other rose wine estates, the initiatives had 'added complexity, lowered margin and drained cash'. Guiony told staff this month that he was reviewing Moet Hennessy's portfolio, particularly brands 'added over the past few years'. Last week, after visiting the White House with his father, Alexandre Arnault was in Napa Valley visiting the Californian wineries. Most of the acquired brands could be kept, Guiony said to staff this month, though their growth plans will be scaled back and costs cut substantially. 'These businesses have been driven by an ambition that is very difficult to accommodate today . . . and we have been planning to develop in many geographies at the same time, which is in my view a mistake,' he said. Under Schaus, Moet Hennessy also accelerated a push into direct to consumer retailing, opening Hennessy stores in China and a Veuve Clicquot outlet at Parisian department store Printemps, as well as selling cases of Dom Perignon and Veuve Clicquot online. The initiative, which is now losing millions of euros per year, according to the people and documents seen by the Financial Times, has also been placed under review. Tannico, an e-commerce joint venture with Campari, launched in 2021, has also been a flop, the people said. Campari did not respond to a request for comment. 'We don't know why these decisions were made [and] we're not going to question them now, but we are going to look at what we should do in the future regarding these activities,' Alexandre Arnault said in this month's staff presentation. Even as Moet Hennessy's sales tumbled last year, LVMH executives pressured the division's managers to find ways to make up a projected €90 million shortfall in operating profit, relative to its 2024 targets. 'We aren't in a position to revise down our target,' Schaus wrote in emails seen by the Financial Times, as he urged teams to cut costs. 'I know each and every one will have many good reasons to argue for lower numbers, but today we need to all rise to the challenge'. One source said it was 'very rare' that a business within LVMH submitted a forecast lower than the year before, adding that it was 'growth, growth at all costs.' 'It was clear [Moet Hennessy] was going to deteriorate further,' the person said. 'But Bernard Arnault didn't want to hear that.'
Free Malaysia Today
12-05-2025
- Business
- Free Malaysia Today
Moet Hennessy woes test Alexandre Arnault's credentials
Moet Hennessy has traditionally served as a cash generator for LVMH, generating nearly US$6 billion in turnover in 2024. (LVMH pic) PARIS : Bernard Arnault's son Alexandre has been handed a daunting task: reviving LVMH's worst-performing unit, the famed Moet Hennessy drinks business, in the midst of a tariff war. If successful, the 33-year old could gain a leg up in the closely watched succession contest among five siblings to lead the US$280 billion luxury conglomerate headed by his father. On Tuesday, Alexandre accompanied his father to Washington, where they attended the swearing-in of Middle East envoy Steve Witkoff, broadcast on local channel Fox 5. US President Donald Trump, who greeted the pair among others at the White House, was heard in the broadcast referring to the younger Arnault as 'the future' and a later meeting with them. LVMH declined to comment on the meeting. All five Arnault children hold management roles in the luxury empire which spans over 70 brands including fashion label Dior and jeweller Tiffany, though their 76-year-old father remains hands-on and has shown no sign of stepping down. Delphine, 50, is CEO of Dior, while Antoine, 47, is head of group communications. Frederic, 30, recently took up the role of CEO of Loro Piana and Jeanne, 26, heads marketing for Louis Vuitton's watches business. Alexandre, the third sibling, previously held a senior role at US jeweller Tiffany, joining Moet Hennessy in February as deputy to new CEO Jean-Jacques Guiony, a trusted adviser to Bernard who was LVMH's finance chief for two decades. The asset-light division, which sells drinks through third-party distributors and whose initials make up half the LVMH name, has traditionally served as a cash generator for the group, generating nearly US$6 billion in turnover in 2024. However, last year, as demand in both the US and China sagged, sales fell for the second consecutive year, while operating profit shrank by one-third. Since champagne and cognac can only be produced in the eponymous French regions, they are subject to US tariffs on imports from the EU, currently fixed at 10% but due to rise to 20% in July. Trump has threatened much higher tariffs of as much as 200% should the EU go ahead with plans to tax bourbon whiskey in an escalating trade dispute. Reinvigorating the business will require both diplomatic and business acumen. 'The true test as a manager is how you manage events through tough times,' said Markus Hansen, portfolio manager at Swiss bank Vontobel, adding that it would be hard to replicate the success of Bernard Arnault. Wealthy clients In their first big internal announcement, Guiony and Alexandre said on April 30 they would cut staff at Moet Hennessy by 13% and concentrate marketing budgets on their biggest global labels, according to a video address seen by Reuters. Alexandre told employees the situation was 'very difficult'. 'Their message seems to be candid,' said Frederic Merceron, labour representative for the Force Ouvriere union, adding that staff were still waiting to hear about concrete proposals to reignite sales. Alexandre also told staff last week he would personally oversee one of the shrinking division's key assets: the Moet Hennessy Private unit that caters for the wealthiest clientele. The unit, which has around 80 employees, offers exclusive experiences and personalised spirits blends for the ultra-rich. It famously sold a cask of Ardbeg Scotch for 16 million pounds in 2022 to a private investor in Asia. 'We've decided to take this business unit… and make it its own entity, reporting to me directly,' Arnault said, according to the video. The emphasis on high-end customers might help moderate the wider impact of tariff threats and flagging consumer demand that is causing the slowest luxury industry growth in a decade. Moet Hennessy's larger base of middle-class clients, however, might be reluctant to splash out on a bottle of Moet if the price creeps above current levels of US$50 or US$60 per bottle because of tariffs, said HSBC analyst Anne-Laure Bismuth. Hidden value? A steady stream of profit from Moet Hennessy, which merged with Louis Vuitton in 1987, for years helped fund Bernard Arnault's acquisitions of brands including watchmaker Hublot and jewellery label Bulgari, and the opening of new stores. Drawing on centuries-old winemaking techniques to sell products like Hennessy XO cognac, known for its curved bottles, and yellow-labeled Veuve Clicquot champagne, the division provided over 40% of group operating profit in the 1990s. 'This unit has been structural for the family, and has enabled the development of the group,' said Mathieu Devers, a representative from the CGT union at Hennessy, employed in the Cognac region. While symbolically important to LVMH, which used the Moet & Chandon label in prestigious sponsorship deals for Formula 1 car racing and the Paris 2024 Olympics, the division's economic contribution to the group has diminished. Wines and spirits last year accounted for just 6% of group operating profit, down from around 20% in 2015, according to figures from Bernstein analysts. If spun off, the division could be valued at €14 billion (US$15.8 billion) once restructured, according to HSBC estimates. Bernard Arnault, who famously tends to cling to his assets, has, however, dismissed the idea: 'Divestment is not on the agenda,' he said in January. HSBC says a sharper focus on 'pure luxury' products such as fashion, leather, watches and jewellery would give LVMH a 'tighter, more coherent portfolio that the market might value more highly'. For Alexandre and Guiony, the clock is ticking. 'Let's give them two years to show what they can do,' Bernard Arnault said after they took up their posts.
Yahoo
12-05-2025
- Business
- Yahoo
Analysis-Moet Hennessy woes test Alexandre Arnault's credentials
By Mimosa Spencer and Tassilo Hummel PARIS (Reuters) - Bernard Arnault's son Alexandre has been handed a daunting task: reviving LVMH's worst-performing unit, the famed Moet Hennessy drinks business, in the midst of a tariff war. If successful, the 33-year old could gain a leg up in the closely watched succession contest among five siblings to lead the $280 billion luxury conglomerate headed by his father. On Tuesday, Alexandre accompanied his father to Washington, where they attended the swearing-in of Middle East envoy Steve Witkoff, broadcast on local channel Fox 5. U.S. President Donald Trump, who greeted the pair among others at the White House, was heard in the broadcast referring to the younger Arnault as "the future" and a later meeting with them. LVMH declined to comment on the meeting. All five Arnault children hold management roles in the luxury empire which spans over 70 brands including fashion label Dior and jeweller Tiffany, though their 76-year-old father remains hands-on and has shown no sign of stepping down. Delphine, 50, is CEO of Dior, while Antoine, 47, is head of group communications. Frederic, 30, recently took up the role of CEO of Loro Piana and Jeanne, 26, heads marketing for Louis Vuitton's watches business. Alexandre, the third sibling, previously held a senior role at U.S. jeweller Tiffany, joining Moet Hennessy in February as deputy to new CEO Jean-Jacques Guiony, a trusted adviser to Bernard who was LVMH's finance chief for two decades. The asset-light division, which sells drinks through third-party distributors and whose initials make up half the LVMH name, has traditionally served as a cash generator for the group, generating nearly $6 billion in turnover in 2024. But last year, as demand in both the U.S. and China sagged, sales fell for the second consecutive year, while operating profit shrank by one-third. Since champagne and cognac can only be produced in the eponymous French regions, they are subject to U.S. tariffs on imports from the European Union, currently fixed at 10% but due to rise to 20% in July. Trump has threatened much higher tariffs of as much as 200% should the EU go ahead with plans to tax bourbon whiskey in an escalating trade dispute. Reinvigorating the business will require both diplomatic and business acumen. "The true test as a manager is how you manage events through tough times," said Markus Hansen, portfolio manager at Swiss bank Vontobel, adding that it would be hard to replicate the success of Bernard Arnault. WEALTHY CLIENTS In their first big internal announcement, Guiony and Alexandre said on April 30 they would cut staff at Moet Hennessy by 13% and concentrate marketing budgets on their biggest global labels, according to a video address seen by Reuters. Alexandre told employees the situation was "very difficult". "Their message seems to be candid," said Frederic Merceron, labour representative for the Force Ouvriere union, adding that staff were still waiting to hear about concrete proposals to reignite sales. Alexandre also told staff last week he would personally oversee one of the shrinking division's key assets: the Moet Hennessy Private unit that caters for the wealthiest clientele. The unit, which has around 80 employees, offers exclusive experiences and personalized spirits blends for the ultra-rich. It famously sold a cask of Ardbeg Scotch for 16 million pounds in 2022 to a private investor in Asia. "We've decided to take this business unit... and make it its own entity, reporting to me directly," Arnault said, according to the video. The emphasis on high-end customers might help moderate the wider impact of tariff threats and flagging consumer demand that is causing the slowest luxury industry growth in a decade. Moet Hennessy's larger base of middle-class clients, however, might be reluctant to splash out on a bottle of Moet if the price creeps above current levels of $50 or $60 per bottle because of tariffs, said HSBC analyst Anne-Laure Bismuth. HIDDEN VALUE? A steady stream of profit from Moet Hennessy, which merged with Louis Vuitton in 1987, for years helped fund Bernard Arnault's acquisitions of brands including watchmaker Hublot and jewellery label Bulgari, and the opening of new stores. Drawing on centuries-old winemaking techniques to sell products like Hennessy XO cognac, known for its curved bottles, and yellow-labeled Veuve Clicquot champagne, the division provided over 40% of group operating profit in the 1990s. "This unit has been structural for the family, and has enabled the development of the group," said Mathieu Devers, a representative from the CGT union at Hennessy, employed in the Cognac region. While symbolically important to LVMH, which used the Moet & Chandon label in prestigious sponsorship deals for Formula 1 car racing and the Paris 2024 Olympics, the division's economic contribution to the group has diminished. Wines and spirits last year accounted for just 6% of group operating profit, down from around 20% in 2015, according to figures from Bernstein analysts. If spun off, the division could be valued at 14 billion euros ($15.8 billion) once restructured, according to HSBC estimates. Bernard Arnault, who famously tends to cling to his assets, has, however, dismissed the idea: "Divestment is not on the agenda," he said in January. HSBC says a sharper focus on "pure luxury" products such as fashion, leather, watches and jewellery would give LVMH a "tighter, more coherent portfolio that the market might value more highly". For Alexandre and Guiony, the clock is ticking. "Let's give them two years to show what they can do," Bernard Arnault said after they took up their posts. ($1 = 0.8886 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
12-05-2025
- Business
- Reuters
Moet Hennessy woes test Alexandre Arnault's credentials
PARIS, May 12 (Reuters) - Bernard Arnault's son Alexandre has been handed a daunting task: reviving LVMH's ( opens new tab worst-performing unit, the famed Moet Hennessy drinks business, in the midst of a tariff war. If successful, the 33-year old could gain a leg up in the closely watched succession contest among five siblings to lead the $280 billion luxury conglomerate headed by his father. On Tuesday, Alexandre accompanied his father to Washington, where they attended the swearing-in of Middle East envoy Steve Witkoff, broadcast on local channel Fox 5. U.S. President Donald Trump, who greeted the pair among others at the White House, was heard in the broadcast referring to the younger as "the future" and a later meeting with them. LVMH declined to comment on the meeting. All five Arnault children hold management roles in the luxury empire which spans over 70 brands including fashion label Dior and jeweller Tiffany, though their 76-year-old father remains hands-on and has shown no sign of stepping down. Delphine, 50, is CEO of Dior, while Antoine, 47, is head of group communications. Frederic, 30, recently took up the role of CEO of Loro Piana and Jeanne, 26, heads marketing for Louis Vuitton's watches business. Alexandre, the third sibling, previously held a senior role at U.S. jeweller Tiffany, joining Moet Hennessy in February as deputy to new CEO Jean-Jacques Guiony, a trusted adviser to Bernard who was LVMH's finance chief for two decades. The asset-light division, which sells drinks through third-party distributors and whose initials make up half the LVMH name, has traditionally served as a cash generator for the group, generating nearly $6 billion in turnover in 2024. But last year, as demand in both the U.S. and China sagged, sales fell for the second consecutive year, while operating profit shrank by one-third. Since champagne and cognac can only be produced in the eponymous French regions, they are subject to U.S. tariffs on imports from the European Union, currently fixed at 10% but due to rise to 20% in July. Trump has threatened much higher tariffs of as much as 200% should the EU go ahead with plans to tax bourbon whiskey in an escalating trade dispute. Reinvigorating the business will require both diplomatic and business acumen. "The true test as a manager is how you manage events through tough times," said Markus Hansen, portfolio manager at Swiss bank Vontobel, adding that it would be hard to replicate the success of Bernard Arnault. In their first big internal announcement, Guiony and Alexandre said on April 30 they would cut staff at Moet Hennessy by 13% and concentrate marketing budgets on their biggest global labels, according to a video address seen by Reuters. Alexandre told employees the situation was "very difficult". "Their message seems to be candid," said Frederic Merceron, labour representative for the Force Ouvriere union, adding that staff were still waiting to hear about concrete proposals to reignite sales. Alexandre also told staff last week he would personally oversee one of the shrinking division's key assets: the Moet Hennessy Private unit that caters for the wealthiest clientele. The unit, which has around 80 employees, offers exclusive experiences and personalized spirits blends for the ultra-rich. It famously sold a cask of Ardbeg Scotch for 16 million pounds in 2022 to a private investor in Asia. "We've decided to take this business unit... and make it its own entity, reporting to me directly," Arnault said, according to the video. The emphasis on high-end customers might help moderate the wider impact of tariff threats and flagging consumer demand that is causing the slowest luxury industry growth in a decade. Moet Hennessy's larger base of middle-class clients, however, might be reluctant to splash out on a bottle of Moet if the price creeps above current levels of $50 or $60 per bottle because of tariffs, said HSBC analyst Anne-Laure Bismuth. A steady stream of profit from Moet Hennessy, which merged with Louis Vuitton in 1987, for years helped fund Bernard Arnault's acquisitions of brands including watchmaker Hublot and jewellery label Bulgari, and the opening of new stores. Drawing on centuries-old winemaking techniques to sell products like Hennessy XO cognac, known for its curved bottles, and yellow-labeled Veuve Clicquot champagne, the division provided over 40% of group operating profit in the 1990s. "This unit has been structural for the family, and has enabled the development of the group," said Mathieu Devers, a representative from the CGT union at Hennessy, employed in the Cognac region. While symbolically important to LVMH, which used the Moet & Chandon label in prestigious sponsorship deals for Formula 1 car racing and the Paris 2024 Olympics, the division's economic contribution to the group has diminished. Wines and spirits last year accounted for just 6% of group operating profit, down from around 20% in 2015, according to figures from Bernstein analysts. If spun off, the division could be valued at 14 billion euros ($15.8 billion) once restructured, according to HSBC estimates. Bernard Arnault, who famously tends to cling to his assets, has, however, dismissed the idea: "Divestment is not on the agenda," he said in January. HSBC says a sharper focus on "pure luxury" products such as fashion, leather, watches and jewellery would give LVMH a "tighter, more coherent portfolio that the market might value more highly". For Alexandre and Guiony, the clock is ticking. "Let's give them two years to show what they can do," Bernard Arnault said after they took up their posts. ($1 = 0.8886 euros)
