LVMH: Champagne Hurt but Spirits “Withstood the Storm”

Dear Client:In its fourth quarter and full year results, LVMH Moet Hennessy saw organic revenues decline -14% for the year and -6% for the fourth quarter for its wine and spirits unit. “2009 was a turbulent year,” said Christophe Navarre, head of LVMH’s wine and spirits unit. “Eighty percent of the drop in revenue was attributable to champagne sales going down, particularly prestige vintages, whereas cognac and spirits withstood the storm.” It was “both consumers changing habits” and “significant destocking