LVMH 2020 . W i n e s & S p i r i t s

48 49

LVMH owes its global leadership in premium wines and spirits to a unique group of exceptional Maisons based in Champagne, Bordeaux, Burgundy and other highly renowned wine-growing regions. Inspired by their visionary founders and drawing on their strong heritage which for some goes back hundreds of years they all share the key values of excellence and creativity, combining tradition with innovation.

Well-balanced, worldwide presence

In the current context, Moët Hennessy continues to pursue a value-enhancing strategy focused on the highest-quality products. The balanced geographic expansion of its portfolio of brands continues thanks to a powerful and agile global distribution network present in over 160 countries.

Responsible procurement policy

To support future growth and maintain the very high quality that has made its Maisons a success, the Wines and Spirits business group pursues a dynamic, responsible procurement policy. All the vineyards owned by LVMH have had sustainable winegrowing certification since 2017, and the Maisons forge partnerships with winegrowers by helping their independent grape suppliers comply with these certifications. Significant work is also being done in the area of packaging. The Maisons are devoting equal effort to actively developing their production capacities, as seen in the responsible, innovative and efficient Pont Neuf bottling and logistics facility inaugurated by Hennessy in 2017, which reflects the Maison s long-term vision.

A VA L U E - E N H A N C I N G S T R A T E G Y F O R L A S T I N G S U C C E S S

Major strategic pr ior ities

Pursue value-enhancing strategy.

Develop production capacities to ensure sustainable growth.

Further improve efficiency of distribution in key markets.

Accelerate efforts to protect the environment, in particular in supply chains and packaging.

2020 REVENUE BY REGION (in %)

Other markets

11% Asia

(excl. Japan) 19%

Japan 6%

France 5%

Europe (excl. France) 18%

United States 41%

Revenue

4 ,755 m 14%(1)

(1) Organic change 2020/2019.

Profit from recurring operations

1, 388 m 20%

Champagne sales volumes

52 .4 m b ot t les

Operating investments

320m 2%

Cognac sales volumes

94 .6 m b ot t les