LVMH Moët Hennessy Louis Vuitton (LVMH), owner of the Hennessy cognac brand ,reported their first quarter earnings today. Total LVMH revenues were up 13% from the first quarter of 2016, led by first quarter growth of 16% in wine and spirits sales.
The LVMH press release announcing their first quarter earnings contained this note:
“Hennessy cognac saw volumes increase significantly which could impact the availability of stocks for the rest of the year.”
According to the Bureau National Interprofessionnel du Cognac (BNIC), sales of cognac hit a record in 2016. Given, Hennessy is the largest producer of cognac with nearly 50% market share in the VS category, and has just completed a robust quarter of sales, it’s probable that the record pace of cognac sales continued in the first quarter of 2017.
Increased Hennessy cognac sales and their impact on the retail availability of cognac in the coming months has yet to be determined.
This is a developing story, please check back for updates.