Alexandre Arnault, son of LVMH chairman Bernard Arnault, has taken on a high-stakes assignment within the world’s largest luxury conglomerate: revitalizing Moët Hennessy, LVMH’s historic but struggling wines and spirits division.
The move marks a significant step in Alexandre’s ascent within the group, reinforcing speculation about the future leadership of LVMH and the broader Arnault family succession plan.
Moët Hennessy—home to icons like Moët & Chandon and Hennessy Cognac—has long served as a key revenue generator for LVMH. However, the division is currently facing severe headwinds: declining sales in its two largest markets, the United States and China; a slump in demand for premium beverages; and rising trade tariffs that threaten its international competitiveness. In 2023, sales dropped for the second year in a row, and operating profit plummeted by over 30%. The impact is stark for a unit once responsible for more than 40% of the group's operating profit during the 1990s. Today, it accounts for just 6%.
To confront this challenge, LVMH appointed Jean-Jacques Guiony, formerly the group’s CFO, as the new CEO of Moët Hennessy in early 2024. Alexandre Arnault joined him as deputy CEO following a successful tenure at Tiffany & Co., which LVMH acquired in 2021. In their first joint internal communication on April 30, the two leaders announced a strategic restructuring plan: a 13% reduction in workforce and a narrowed focus on the division's globally recognized flagship brands. Alexandre acknowledged the gravity of the situation, describing it to employees as "very difficult."
One of Alexandre's most ambitious initiatives is to personally oversee Moët Hennessy Private, a boutique unit serving high-net-worth individuals. This elite team of around 80 employees offers bespoke experiences, limited-edition releases, and curated spirits collections. The unit gained attention in 2022 when it sold a barrel of Ardbeg whisky for GBP 16 million to an Asian collector. Alexandre aims to elevate this business into an independent entity under his direct supervision, signaling a strategic pivot toward ultra-premium clientele to offset slowing mass-market sales and mitigate tariff risks.
This focus on exclusivity may protect the division from the economic and geopolitical pressures affecting broader consumer demand. However, analysts such as Anne-Laure Bismuth of HSBC caution that rising prices—exacerbated by U.S. tariffs on European alcohol imports, which are set to increase from 10% to 20% in July—could drive middle-class buyers away. “If a bottle of Moët crosses the USD 60 mark, we risk losing volume from a vital segment,” she warned.
Tariff threats are also wrapped in political tension. Alexandre recently appeared alongside his father at a diplomatic event in Washington, where U.S. President Donald Trump reportedly referred to him as "the future" during a televised segment. LVMH has declined to comment on the political implications or potential lobbying efforts tied to the visit.
The Arnault family has always run LVMH with a long-term perspective, and succession planning remains a topic of speculation. All five Arnault children now hold senior roles in the group, with Alexandre’s new assignment putting him at the forefront of a turnaround effort critical not only for Moët Hennessy’s future—but also for his own positioning within the family empire.
Internally, expectations are high. Workers are demanding concrete strategies to revive sales, while shareholders are watching for signs that the once-dominant division can reclaim profitability. Industry observers believe a successful transformation could not only restore Moët Hennessy's market strength but also solidify Alexandre Arnault’s credentials as a future LVMH leader.
For now, Bernard Arnault has given Alexandre and Guiony two years to deliver results. With a legacy brand on the line and a multi-billion-euro division underperforming, the next moves will determine not just the fate of Moët Hennessy—but potentially the next generation at the helm of LVMH.
Source: Vinetur