"Now that people are coming out of the covid pandemic, there is a pent-up demand for luxury, indulgence and travel" gave Schaus as the main reason for the huge demand for premium products. He predicts that 2022 will end up being a 'fabulous' year for champagne. For the third quarter of the current business year, LVMH had published a turnover growth of 19% (over the whole year so far it has been 20%). The group, which also includes non-alcoholic luxury brands such as Dior and Bulgari, is in good company here: Kering (Gucci, Balenciaga etc.) had also reported 14% growth in the same quarter, Hèrmes achieved 24%.
"A 'fabulous' year for champagne."
This may seem absurd in times of economic crisis, but according to the investment bank Credit Suisse, there has been almost a "wealth explosion" in the course of the ongoing pandemic, with the number of people with assets in excess of $50 million (€48.37 million) rising to 218,200 in the interim. For the consumption behaviour of this comparatively small but extremely affluent clientele, the current inflation rates and price increases are likely to have a rather marginal effect.
What does this mean for LVMH Champagne customers? So far, no out-of-stock situation has been reported for the stalwarts of food retail bestsellers such as Brut Imperial or Moët Ice; it is primarily top products from Krug, Dom Pérignon and Co. that seem to be threatened by scarcity.
