Alexandre Arnault, son of LVMH chairman Bernard Arnault, has been handed the reins to one of the company’s biggest challenges: reviving the Moët Hennessy division, which is currently the weakest link in the $280 billion luxury empire.
At just 33 years old, Alexandre now has the opportunity to prove himself in a high-stakes test of leadership, as the race heats up among the five Arnault siblings vying for future control of LVMH. His performance at Moët Hennessy, which has suffered from plummeting sales and shrinking profits, could shape not just his future—but the next chapter of the world’s largest luxury group.
Moët Hennessy, known for iconic champagne and cognac brands like Veuve Clicquot and Hennessy XO, has been battered by waning demand in the U.S. and China, as well as rising tariffs. In 2024, operating profits plunged by one-third, marking a second consecutive year of decline. With U.S. tariffs on French wine and spirits set to double from 10% to 20% in July—and threats of even harsher measures if the EU retaliates—Alexandre’s job is anything but easy.
His first moves, alongside new CEO Jean-Jacques Guiony, include cutting staff by 13% and refocusing marketing efforts on Moët Hennessy’s most prestigious brands. The goal is to appeal to ultra-wealthy clients who are less price-sensitive and more loyal to luxury experiences.
In a video message to staff, Alexandre acknowledged the gravity of the situation, calling it “very difficult,” and announced he would take direct control of Moët Hennessy Private—a boutique unit catering to elite clients with customized blends and exclusive experiences. This division famously sold a cask of Ardbeg Scotch for £16 million in 2022.
Yet, while this pivot to luxury might cushion the impact of tariffs, analysts warn it may alienate Moët Hennessy’s broader, middle-class customer base. With prices likely to rise, many may hesitate to spend $60 or more on a bottle of champagne.
Still, there’s hidden value in the division. Once a major profit driver, Moët Hennessy helped fund LVMH’s acquisition spree in the ’90s and 2000s. Despite its shrinking share—just 6% of group operating profit in 2024, down from 20% in 2015—it holds symbolic importance. Its heritage and visibility in global events like Formula 1 and the Paris 2024 Olympics keep it in the spotlight.
Some analysts speculate the division could be worth over $15 billion if restructured or spun off, but Bernard Arnault has shut down any talk of divestment, saying, “Divestment is not on the agenda.”
For now, all eyes are on Alexandre. As he steps into the spotlight and directly oversees key assets, the next two years may determine not only the future of Moët Hennessy but his place in the succession battle at LVMH.
