The wine and spirits business of LVMH saw a marked improvement in trends during its third quarter after significant losses in the second quarter of 2020.
Organic revenue for wine and spirits fell by 3% in the three months to 30 September to €3.349 billion (US$3.9bn), vastly better than the 33% sales drop in the second quarter and the 14% decline in the first quarter.
Organic revenue for the first nine months of 2020 was down 15% compared to 2019, largely due to the impact of the Covid-19 pandemic.
LVMH attributed the Q3 results to a ‘strong recovery’ from Hennessy Cognac, driven by VS expressions and ‘exceptional stimulus support’ for consumer demand in the US.
The company also released a high-end rum during its third quarter, called Eminente.
A statement from LVMH said: “In a very turbulent context, marked by continuing economic and health uncertainties, LVMH will continue to exercise caution, strengthen its cost controls and selectivity in its investments.
“The group will maintain a strategy focused on preserving the value of its brands, by continuing its marketing and communication investments and relying on the exceptional quality of its products and the reactivity of its organisation.
“LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2020.”
Last month, Hennessy has partnered with architect Frank Gehry to create 150 limited edition XO decanters, priced at £15,000 (US$19,130), to mark the expression’s 150th anniversary.
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Author: Melita Kiely