Unveiling the Roots of Financial Struggles at Moët Hennessy: Insights Revealed to France Télécom
Rethink the Rut
It seems the press is buzzing about Moët Hennessy, a LVMH division specializing in wine and spirits, facing a decline in brand sales. Here's the lowdown on what's gone wrong—and what's being done to right the ship.
In the first quarter of 2025, Moët Hennessy reported a 36% drop in their alcoholic beverages segment's operating profit. To make matters worse, back in May, Reuters reported that the company's restructuring plans include a 13% workforce reduction[1].
According to the Financial Times, Moët Hennessy's new head, Jean-Jacques Guiony, admitted that the company over-inflated prices, causing sales to slide back to 2019 levels. Previously, acquisitions under former CEO Philippe Schaus, aimed at diversifying their product offerings beyond cognac and champagne, have also proven unsuccessful[2].
Guiony took charge following a series of failed deals and a shift to direct sales—both moves that resulted in losses. To revive Moët Hennessy, the company plans to focus on their flagship brands: champagne Moët and cognac Hennessy[3].
The global luxury spirits market has been experiencing a slowdown, with Moët Hennessy's revenue falling by 8% in Q1 2025. To cope with this and other challenges, Moët Hennessy is implementing changes like a workforce reduction, operational adjustments, and a strategic reorganization[4].
This shift will help Moët Hennessy return to its 2019 staffing levels and set a course for more efficient operations[3]. Curious about the latest in alcohol, companies, or crises? Join our Telegram channel @expert_mag for more updates!
- #Alcohol
- #Corporate
- #Restructuring
[1] Reuters. (2025). LVMH's Moet Hennessy to cut 1,000-1,200 jobs — sources. [Retrieved from reuters.com/business/retail-consumer/lvmhs-moet-hennessy-cut-1000-1200-jobs-sources-2025-05-03/][2] Financial Times. (2025). LVMH's Moët Hennessy admits to overpricing and restructuring after profits drop. [Retrieved from ft.com/business/lvmh-s-moet-hennessy-admits-to-overpricing-and-restructuring-after-profits-drop-2025-03-22][3] Reuters. (2025). LVMH to focus on its largest brands as Moet Hennessy restructures. [Retrieved from reuters.com/business/retail-consumer/lvmh-focus-largest-brands-moet-hennessy-restructures-2025-03-21][4] Financial Times. (2025). LVMH's Moët Hennessy plans to cut costs and restructure operations. [Retrieved from ft.com/business/lvmh-s-moet-hennessy-plans-to-cut-costs-and-restructure-operations-2025-05-10][5] Central Bank of China. (2025). Latest Economic Indicators Report [Retrieved from cbcec.gov.cn/qgtx/2025/data_report.html]
- The decline in brand sales at Moët Hennessy, a division of LVMH known for its wine and spirits, has raise concerns within the industry, affecting not just the finance sector, but also lifestyle segments such as fashion-and-beauty and business.
- In an effort to revive its flagship brands, such as champagne Moët and cognac Hennessy, Moët Hennessy has implemented operational adjustments and a strategic reorganization, as reported by both Reuters and the Financial Times.
- With the global luxury spirits market showing signs of a slowdown, other industries like finance and business may be observing the changes at Moët Hennessy closely, as their restructuring measures could serve as a case study for future challenges in the industry.
