Day time drinking has convinced LVMH to make a rose acquisition
Luxury titan LVMH is getting in on a new trend: drinking in the summer sun. But the drinkers it has in mind are not, of course, larger louts lounging on the couch. They’re sophisticated rose drinkers who have taken to sipping the pinkish wine throughout the afternoon all through summer. To appeal to these consumers, which are heavily but not exclusively millennial, LVMH has made its latest purchase the Chateau du Galoupet, a 17th-century estate in Provence, where France faces the Mediterranean.
LVMH’s share price has appreciated by 33% year to date
Source: Yahoo Finance
According to LVMH, the Chateau’s key selling point was “a micro-climate which refreshes the vines with temperate and salty winds” ensuring consistent yields. The company’s new rose will now sit alongside its other offerings in the beverage department, including champagnes like Dom Perignon and Ruinart, as well as Hennessy Cognac, and “top shelf” Bordeaux and Burgundy labels.
Provencal exports have risen 14-fold over the last decade, with local trade association CIVP saying that it grew by 8% last year. That’s three times as much as French wines overall.
This acquisition is the latest move by LVMH to capture high-end and relevant market sections – something the brand has been successful with over the past year. In its most recent quarterly earnings release, LVMH’s chairman and CEO, Bernard Arnault, praised the group’s “record year” and promised that it would continue its “strong dynamic of innovation, targeted investments, combining tradition and modernity, long-term vision and responsiveness, entrepreneurial spirit and a sense of responsibility.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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