LVMH’s Wines & Spirits division reported revenues of EUR 3.92 billion for the first nine months of 2025, compared to EUR 4.19 billion a year earlier, reflecting a 4% organic decline and a 2% negative currency effect.
Despite this contraction, the group recorded a return to organic growth of +1% in the third quarter, signaling early signs of stabilization after several challenging quarters.
Divergent Performance Between Champagne & Wines and Cognac & Spirits
The division’s two main pillars – Champagne & Wines and Cognac & Spirits – showed markedly different dynamics over the reporting period.
- Champagne & Wines generated EUR 2.16 billion in revenue, a modest improvement from EUR 2.14 billion in 2024. The recovery was driven by strong demand for prestige cuvées, particularly in Europe and Japan, and a notable rebound in Provence rosé wines, reflecting consumer appetite for premium and lifestyle-oriented wine categories.
- Cognac & Spirits, on the other hand, saw a steeper decline, with revenues falling from EUR 2.05 billion to EUR 1.76 billion. This segment continues to be constrained by weaker demand in the United States and China, two critical export markets. Persistent trade tensions and high inventory levels among distributors have weighed on restocking activity and overall consumption, particularly in the premium Cognac category.
Currency and Market Context
The -2% currency impact stemmed primarily from the depreciation of the U.S. dollar and the Chinese yuan against the euro, reducing reported earnings despite stable local-currency performance in several markets. The structure effect remained neutral, confirming that performance shifts were organic rather than acquisition-driven.
Macroeconomic uncertainty, coupled with shifting consumer spending priorities, continues to shape global wine and spirits demand. In the U.S., inflationary pressures have pushed consumers toward more price-sensitive segments, while in China, the luxury spirits market remains subdued amid slower economic growth and changing gifting habits.
Sequential Improvement and Strategic Resilience
LVMH emphasized the positive trajectory in the third quarter, with organic growth returning to +1%, driven by the Champagne and still wines category. The improvement underscores the resilience of LVMH’s brand portfolio, which includes iconic houses such as Moët & Chandon, Veuve Clicquot, Ruinart, and Château d’Esclans.
The group’s long-term strategy continues to focus on value over volume, emphasizing brand heritage, sustainable viticulture, and selective distribution to preserve prestige positioning. The gradual normalization of Cognac inventories in key markets, combined with the ongoing recovery in tourism and hospitality channels, may further support performance in the coming quarters.
Outlook
While short-term headwinds persist—especially in Cognac—the overall trajectory suggests that LVMH Wines & Spirits is entering a phase of gradual rebalancing. A more favorable demand environment in Europe and Asia, coupled with the enduring global appeal of Champagne and Provence rosé, may help offset volatility in the U.S. and China.
Source: LVMH