LVMH stocking up on cognac, starting with more vineyards

Cognac, France

LUXURY goods maker LVMH hopes to be well on its way to remedying its cognac shortage two years from now, billionaire boss Bernard Arnault said on Wednesday, as its Hennessy label struggles to keep up with demand in the United States.

Sales at Hennessy, one of LVMH's big revenue drivers, are set to grow at a much more muted pace over the coming quarters as it grapples with low stocks and production problems, including hail and frost that hurt recent harvests.