Akansha Baradiya’s Post

📉🍾 LVMH, the luxury giant, reported a significant drop in champagne sales in the first half of 2024. The company's CFO attributes this decline to fewer celebrations and festive events. With the global economy in flux, consumers are becoming more cautious with luxury spending. It will be interesting to see how LVMH responds to this challenge and what strategies they will implement to turn things around. 🔗 https://lnkd.in/gQFpFpjF #LVMH #luxury #economy #champagne #businessnews

A signature sign of a party or celebration is popping champagne. The fizzy alcoholic beverage kicks off weddings, graduations, new jobs, and new homes. But luxury goods holding company LVMH, famous for brands including Louis Vuitton, Hennessy and Moët, says people don’t have much to celebrate now—so the group’s champagne sales have suffered. While LVMH’s champagne and wine sales generated $1.52 billion in revenue in the first half of this year, that’s a 12% decline from the division’s take last year, according to the company’s earnings report released Tuesday. In the U.S., revenue was down, but still above pre-pandemic levels, according to the report. | Fortune https://lnkd.in/geEBkU7Q

What I learnt navigating through my journey as a luxury marketer: when the macro environment dims, your strategy must shine brighter. Champagne sales are slipping, not because people stopped celebrating, but because they’ve redefined what celebration looks like. The old “bottle-popping, big-party” narrative? It’s stale. Post-COVID, consumers are focused on self-celebration which are personal, and rooted in quality over quantity. Its an opportunity to redefine “Moments of consumption”: It’s no longer just the drink of weddings or New Year’s Eve; it should own the space of life’s quiet wins. Closing a deal, nailing a recipe, or even surviving a Monday. Its an opportunity to reframe the story: it’s not just about what you’re celebrating, but who you’re becoming. The world may be gloomy, but brands that tap into the consumer’s desire for everyday elevation might rise above. #StoryTelling #EvolvingLuxury #MarketingResilience #RedefineCelebration

The alcohol-free market is no longer a fad but a legitimate movement as people cut back on their alcohol consumption. According to Statista, the non-alcoholic spirits/beer market will exceed $561M this year. Brands like Athletic Brewing Co., Aplós and Ghia are capitalizing on this market and now LVMH is getting into the game by buying into FRENCH BLOOM. Most alternatives are priced close to their alcoholic peer. But none have tested the how much people are willing to spend for a non-alcoholic alternative. LVMH is betting that people are willing to buy a $100 bottle of alcohol-free sparkling wine. Where would you draw the price line? Does the LVMH brand make a $100 bottle more desirable? Thank you The Wall Street Journal and Nick Kostov for your article. #beverages #alcoholicbeverages #marketing

You Have to Think About the Maison": Minuty CEO Discusses Joining LVMH. #MaisonMinuty #LVMH #WineIndustry #ExecutiveInsights #BusinessStrategy #LuxuryBrands #MarketExpansion #BeverageNews #WineBusiness #CheersToGrowth

It has been obvious for years to The Luxury Institute, LLC that both young and older affluent consumers have been moving away from higher alcohol consumption, driven by the wellness and health revolution that The Luxury Institute, LLC identified many years ago. HNWs and UHNWs of all generations have been signaling and making that transition for many years, even before the pandemic. We know enough young wealthy who have never tasted an alcoholic beverage. You have to maintain a constant dialogue with HNWs and UHNWs so you can anticipate and create the future. They will tell you, and you need to innovate. Our vast trusted network of HNW and UHNW individuals and families across the world is a unique resource for true luxury goods and services brands. Many brands across categories have been working with us for years. Others have failed to take HNW and UHNW sentiment into account and have paid the price. HNWs and UHNWs tell us they enjoy The Luxury Institute, LLC’s interviews, conducted by Emotionally Intelligent experts in a safe environment with privacy and confidentiality. We make the entire end to end process an Extraordinary Experience for the client and the interviewee. Every single wines/spirits company should have been innovative and developed their own non-alcoholic wines and spirits, and venues, years ago. HNW and UHNW consumers have been asking. Empathy and High Trust Worth are everything with HNWs and UHNWs.

Hennessy's Bold Move Hennessy's decision to launch the "Made for More" campaign with a fresh visual identity, featuring celebrities like Teyana Taylor and Damson Idris, likely revolves around several key marketing strategies. By positioning cognac as a versatile spirit ideal for cocktails, Hennessy aims to appeal to a broader and perhaps younger demographic. Traditionally, cognac might be perceived as a more traditional or older person's drink. Introducing it as a cocktail-friendly option makes it more accessible and appealing to younger consumers who enjoy experimenting with different spirits and cocktails. READ ARTICLE: https://lnkd.in/gfNZBGex #HennessyMadeForMore #CognacCocktails #TeyanaTaylor #DamsonIdris #ModernMixology #LuxuryLifestyle #HennessyRevamp

In the mid-1990s, Sidney Frank – an American businessman with a knack for crafting luxury brands – wanted to introduce a new premium vodka to the market, at the time dominated by established Russian brands and Sweden's Absolut. Targeting the affluent and aspirational, Frank leveraged American consumers' intuitive association between luxury and French goods by partnering with Francois Thibault, a cellar master, to craft what he'd decided to call 'Grey Goose' using traditional French techniques – distilled in Picardy and bottled in Cognac. With taste and production sorted, Frank turned to branding. Wanting his bottle to convey French provenance, Frank's design featured frosted glass for a premium edge and a small flag to denote its country of origin; delicate netting circles the body to mimic the region's fine wines, as does a replaceable cork. The product was placed in Sex and The City – a pinnacle of late 90s New York lifestyle – as well as donated to multiple society charity galas. Business boomed, and by 2004, just seven years after launch, Grey Goose was sold to Bacardi for $2 billion. By hiking pricepoint (at launch Absolut sat around $17 for 750ml, Grey Goose went on shelves for $30), Frank created a self-fulfilling prophecy. Everything about vodka is perception. It's colourless, odourless, even tasteless in a way. Yet by building visual, psychological and social associations between the product and perceptions of luxury, Sidney Frank set a new standard for the spirit market. Whilst the likelihood of Grey Goose lining the cellars of collectors is slim, its origin lends itself to the importance of perceived value. Fine wine and rare spirits are an increasingly credible asset class, with a global market value in the billions. More than that, owning products of high calibre possesses an intoxicating quality unmatched by other kinds of capital — whether investors drink it or not. Read more on how brands transform products into assets with perception via the link in comments. #MatterOfForm #FineWine #RareSpirits #Investment #Assets #Luxury #Alcohol #Branding #Design #Collectables #Innovation

Champagne’s Golden Decade: A Market on the Rise! A toast to a decade of growth in the champagne market! 🍾 Premiumization and rising demand are driving this sparkling sector forward, showing resilience and a thirst for luxury that continues to grow. Discover what’s shaping the future of champagne! #ChampagneMarket #LuxurySpirits #AlcoholIndustry #MarketTrends #ChampagneLovers #PremiumChampagne #BeverageInsights #GrowthTrends

In the mid 1990s, Sidney Frank – an American businessman with a knack for crafting luxury brands – wanted to introduce a new premium vodka to the market, at the time dominated by established Russian brands and Sweden's Absolut. Targeting the affluent and aspirational, Frank leveraged American consumers' intuitive association between luxury and French goods by partnering with Francois Thibault, a cellar master, to craft what he'd decided to call 'Grey Goose' using traditional French techniques – distilled in Picardy and bottled in Cognac. With taste and production sorted, Frank turned to branding. Wanting his bottle to convey French provenance, the design featured frosted glass for a premium edge and a small flag to denote its country of origin; delicate netting circles the body to mimic the region's fine wines, as does a replaceable cork. In terms of marketing highlights, the product was placed in Sex and The City – a pinnacle of late 90s New York lifestyle – as well as donated to multiple society charity galas. Business boomed, and by 2004, just seven years after launch, Grey Goose was sold to Bacardi for $2 billion. By hiking pricepoint (at launch Absolut sat around $17 for 750ml, Grey Goose went on shelves for $30), Frank created a self-fulfilling prophecy. Everything about vodka is perception. It's colourless, odourless, even tasteless in a way. Yet by building visual, psychological and social associations between the product and perceptions of luxury, Sidney Frank set a new standard for the spirit market. Whilst the likelihood of Grey Goose lining the cellars of collectors is slim, its origin lends itself to the importance of perceived value. Fine wine and rare spirits are an increasingly credible asset class, with a global market value in the billions. More than that, owning products of high calibre possesses an intoxicating quality unmatched by other kinds of capital — whether investors drink it or not. Read the rest via the link in comments. #MatterOfForm #FineWine #RareSpirits #Investment #Assets #Luxury #Alcohol #Branding #Design #Collectables #Innovation