Moet Hennessy is running out of champagne as demand surges
CHAMPAGNE fans are so enthusiastic about exiting Covid restrictions, they’re drinking Moet Hennessy out of supply.
Chief executive Philippe Schaus said in an interview at the New Economy Forum in Singapore that some top champagnes are running out of stock, and that the current period has been dubbed the “Roaring 20s” internally.
There is good news on the horizon too, with the new year set to see supply replenished, he said.
After an initial slump in the early days of the pandemic, the biggest names in luxury are reporting a spending frenzy as consumers unleash pent-up demand.
LVMH Moet Hennessy Louis Vuitton managed to beat analyst estimates at four of its five main divisions in its most recent earnings; Hermes International’s revenue surged 24 per cent, excluding currency swings, despite increasing a raft of product prices.
While so far affluent consumers are signalling they are still willing to buy pricey goods, global economic headwinds are building.
Inflation is a key element of uncertainty, Schaus said at the event organised by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.
A rise in raw material costs may mean the company will increase the price of some products by high single-digit or low double-digit amounts, he added. BLOOMBERG
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