The wine and spirits arm of LVMH saw sales skyrocket during the first quarter of 2021, aided by a ‘strong rebound’ in China.

The wine and spirits unit of luxury goods company LVMH saw organic revenue rise 36% in the first quarter of 2021 to reach €1,510 million (US$1,805m).

Compared to the same period in 2019, this represented a 17% organic increase.

LVMH said Hennessy Cognac saw volumes grow by 28% during the three-month period, compared with 2020.

By region, as well as a ‘strong rebound’ in China, the group experienced ‘robust’ demand in the US.

Looking ahead to the rest of 2021, LVMH said the situation remains ‘turbulent’ due to the ongoing Covid-19 pandemic.

However, the brand said it was well-equipped to build upon the ‘hoped-for recovery in 2021’ and to regain ‘growth momentum’ for all of its businesses.

The wine and spirits arm of LVMH experienced a 14% decline in organic sales in 2020 despite ‘remarkable resilience’ from Cognac.

Last September, LVMH-owned Hennessy partnered with architect Frank Gehry to create 150 limited edition XO decanters to celebrate the expression’s 150th anniversary.

Hennessy was also crowned Cognac Brand Champion 2020.
Via News – The Spirits Business
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