Stat: LVMH champagne sales plummet as desire to celebrate dwindles

Global – Luxury conglomerate LVMH, known for brands such as Louis Vuitton, Hennessy and Moët & Chandon, has reported a significant downturn in its champagne sales, attributing it to a global decline in the celebratory spirit. According to LVMH’s latest earnings report, its champagne and wine sales fell by 12% year on year in the first half of 2024, generating revenue of £1.18bn ($1.52bn, €1.41bn).

LVMH’s chief financial officer Jean-Jacques Guiony highlighted a ‘severe demand issue’ for champagne, a drink typically associated with celebration and happiness. The company’s prestigious champagne brands, including Veuve Clicquot, Dom Pérignon, Mercier, Krug and Moët & Chandon, have all reported reduced sales.

Guiony speculated that current global circumstances, such as the cost of living crisis or geopolitical tensions, are dampening people’s spirits, resulting in fewer occasions to celebrate with champagne. Despite the decline, US revenue remained above pre-pandemic levels.

At the same time, there is a notable shift in consumer preferences towards non-alcoholic beverages, including champagne, beer and spirits. This trend is particularly pronounced among Gen Z consumers, as we revealed in Sober Bars.