The global luxury powerhouse LVMH has reported a return to growth in its wine and spirits division during the first quarter of 2026, signaling a cautiously optimistic start to the year for its drinks arm, Moët Hennessy.
However, beneath the positive headline figures lies a more nuanced picture of uneven recovery across regions and product categories.
A Positive Turn After a Difficult 2025
Moët Hennessy delivered organic revenue growth of 5%, reaching €1.27 billion in the first three months of 2026. This marks a notable rebound after a challenging end to 2025, when the division recorded a 9% decline in the fourth quarter and a full-year drop of 5%.
Despite the organic growth, reported revenue slipped by 2%, largely due to currency fluctuations and accounting effects. Still, the return to positive momentum suggests that demand for key categories—particularly Champagne and wines—has begun to stabilize.
Champagne Leads the Recovery
Champagne was a central driver of this recovery. LVMH noted a “good start to the year,” especially in European markets, where consumption patterns appear to be normalizing after previous softness.
The Champagne and wines segment posted organic growth of 5%, totaling €663 million. This performance reflects renewed consumer confidence in premium sparkling wines and steady demand for still wines, which continue to perform well within the group’s portfolio.
Additionally, Provence rosé wines maintained strong momentum, reinforcing the growing global appetite for fresh, lifestyle-driven wine styles.
Asia Provides a Timely Boost
Asia emerged as the strongest-performing region for LVMH in the first quarter, with sales (excluding Japan) rising by 7%. A key factor behind this growth was the timing of the Chinese New Year, which fell more favorably in 2026 compared to the previous year.
This calendar effect supported stronger consumption and gifting activity, particularly benefiting Champagne and other celebratory categories. The region continues to be a critical growth engine for luxury wine and spirits brands.
Persistent Weakness in the U.S.
In contrast, the United States remains a softer market for LVMH’s wine and spirits division. While overall group sales in the U.S. rose modestly by 3%, demand for wines and spirits has yet to show meaningful recovery.
Cécile Cabanis, LVMH’s Chief Financial Officer, highlighted that recent growth was partly supported by shipment timing rather than underlying demand strength. She cautioned that this effect may not carry into the second quarter, indicating that the early-year performance could prove temporary.
Cognac Outlook Remains Uncertain
One of the more concerning signals comes from the Cognac segment, which continues to face headwinds. While shipments helped boost first-quarter figures, LVMH warned that this support may not persist.
The category is dealing with weaker demand in key markets, particularly the U.S., as well as broader macroeconomic pressures affecting premium spirits consumption.
Group Performance and Strategic Outlook
At the group level, LVMH reported modest organic growth of 1%, while total reported revenue declined by 6% to €19 billion. These figures reflect ongoing currency challenges and a complex global environment.
Looking ahead, the company remains cautious. Geopolitical tensions, including those linked to the Middle East, along with broader economic uncertainty, continue to cloud the outlook.
To navigate these challenges, LVMH plans to focus on:
- Innovation in product offerings
- Strengthening brand equity
- Maintaining selective distribution strategies
A Fragile but Encouraging Recovery
The first quarter of 2026 offers encouraging signs that LVMH’s wine and spirits division is regaining its footing. Champagne has stabilized, wines are performing well, and Asia is once again driving growth.
However, the recovery remains uneven. Weak demand in the U.S., uncertainty around Cognac, and external economic pressures suggest that the path forward will not be linear.
For industry observers and professionals, the key takeaway is clear: while premium wine and spirits demand is resilient, it is increasingly shaped by regional dynamics and shifting consumer confidence.
Source: Vinetur