France's telecommunications company, France Télécom, is now informed about the factors leading to the predicament at Moët Hennessy.
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It looks like LVMH's sparkling division, Moët Hennessy, is going through a drastic makeover following a dip in sales and a rise in expenses. Here's the lowdown on the latest moves and what's causing the revenue slide:
Revamping the Organization
- Job Cuts: Moët Hennessy is set to slash over 10% of its global workforce—around 1,200 employees—through a mix of natural attrition and not filling vacant positions.
- Focus on Iconic Brands: LVMH is shifting focus to heavy-hitters like Moët & Chandon, Hennessy cognac, and Veuve Clicquot to boost sales and profits. Less popular brands will take a back seat.
- Streamlining Operations: The restructuring aims to streamline processes, collaborate more closely with strategic partners, and improve overall efficiency.
Behind the Sales Dip
- Market Slump: The wine and spirits industry is seening a downturn, with Moët Hennessy dealing with a significant drop in consumer demand. Initial quarter sales plummeted by 9% in 2025.
- mounting Costs: The division is grappling with escalating costs, causing a dent in profitability.
- Tariff Troubles: Continued uncertainty about US tariffs is adding another layer of difficulty to the division's future.
- Market Trends: The wider luxury goods industry is favoring iconic brands over smaller ones, and Moët Hennessy is no exception.
All in all, the revamp at Moët Hennessy targets returning the division to its 2019 employment levels and focusing on its star brands. Catch the latest scoop by joining our Telegram channel @expert_mag
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- In an attempt to improve efficiency and increase profits, LVMH's focus in the fashion-and-beauty and business sectors is aligning with Moët Hennessy's decision to focus on its iconic brands such as Moët & Chandon, Hennessy cognac, and Veuve Clicquot.
- The finance industry is witnessing the impact of increased costs and volatile market trends on Moët Hennessy's division, as the company grapples with rising costs and a shift in consumer preferences towards iconic brands.
- The organizational changes in the industry, including job cuts and streamlining operations, are evidence of Moët Hennessy making drastic changes to its lifestyle sector, aiming to return to its 2019 employment levels and maintain a competitive edge in the wine and spirits market.
