BLOOMBERG

Hennessy Cognac stockpile a ‘Just-In-Case’ Brexit scenario

By Bloomberg 1 February 2019

Bottles of Moet champagne are seen at an All Bar One public house, operated by Mitchells & Butlers Plc. in London, U.K., on Tuesday, May 17, 2011. Food and alcohol sales rose an annual 2.1 percent in April, boosted by alcoholic drinks including champagne. Photographer: Chris Ratcliffe/Bloomberg

Luxury giant LVMH Moet Hennessy Louis Vuitton, the French maker of high-end beverage brands including Moet & Chandon champagne and Hennessy cognac, said on Tuesday that it has added four months of wine and spirits inventory to the UK to prepare for the country’s expected exit from the European bloc.

It’s not just aircraft parts and printing ink accumulating in UK warehouses ahead of the country’s possible split from the European Union in two months’ time. The growing stockpiles also include booze.

Luxury giant LVMH Moet Hennessy Louis Vuitton, the French maker of high-end beverage brands including Moet & Chandon champagne and Hennessy cognac, said on Tuesday that it has added four months of wine and spirits inventory to the UK to prepare for the country’s expected exit from the European bloc.

We are ready for the worst case scenario if there were difficulties with deliveries,” executives said on LVMH’s fourth-quarter earnings conference call, noting that the UK represents 4% of the group’s revenue.

While it prepared for the worst in the UK, the Paris-based conglomerate enjoyed solid growth in all regions last quarter. In particular, the company cited strength for wine and spirits in China, where consumers have been snapping up its Hennessy and Dom Pérignon. – Bloomberg DM

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