LVMH and Its Six Brands of Champagne: The Return Premium

Bernard Arnault and LVMH they represent the conglomerate world leader of luxury unprecedented, with profit margins satisfactory even in times of crisis like the current one. Its best profitability are not luxury handbags and fashion: is your champagne.

Champagne in the plural and for all levels of users, from the brand of choice by the French (purchased at the grocery store), Mercier, through the iconic Moet & Chandon and Veuve Clicquot, to the high-end: Ruinart, Dom Perignon and Krug.

All under the corporate umbrella of LVMH but managed independently, following a company policy which I consider to be perfect to ensure centenary personality of many of them (only share distribution).

All those golden bubbles that we both like in Embelezzia beat the record of profitability, even above 32% of fashion and leather goods, i.e. above Christian Dior, Celine and Louis Vuitton.

The net margin to end of the 2007 was 36.7%, with a turnover of 1.7 billion euro (1 billion are billion). The number 2 of this ranking of luxury champagne Vranken-Pommery is: 290 million euros. A challenge very difficult to achieve in a short time… or medium.

The two gold reefs are MOET & Chandon and Veuve Clicquot, marks Queens of the export: 8 out of 10 bottles exported. Their prices can vary from 30 to 300 euros the bottle, according to the point of sale and the country where you are.

Ruinart is the maison de champagne oldest in France and its prestigious Blanc des Blancs can be purchased at specialty shops and gourmet exclusively. Here marketing It plays an important role by giving it an aura of elegance and intellectuality that allows you to ask a price of 55 euros for the bottle.

The crazy by showering the crowd with Dom Perignon You must leave this parked once mania: their millésimes cost 120 euros and rising, and I ma hurt the soul when I see waste. In the top of the shelf of luxury is Krug: If you want to taste its Clos du Mesnil prepares 1200 euros.

For display marketing weapons, first you have to be sure of the quality and quantity necessary of the three grapes: pinot meunier, pinot noir and chardonnay. LVMH produced only 1/3 of its raw material needs even possessing 1,650 hectares of agricultural land in the region of Champagne. To get an idea, the Roederer group has about 300 hectares.

The remaining 2/3 parts buy them small independent winegrowers: 1.20 kilos of grapes are needed to produce a bottle. These farmers long-term contracts (be sure that these grapes come to LVMH for a long time, seen its dependence with them) ensure it an enviable living standards, unless they decide to sell: could sell their prized land at the rate of about 800,000 euros per hectare.

The stage intermediate, before giving the product to the Department of marketing (coffrets and packaging special and fabulous ads) is called chefs of cave. Makers of the caves they recruit between flower and cream of experts, who are professional but happily receive more than 6,000 euros per month.

One of the experts more famous works in Dom Perignon: Richard Geoffroy. It is not rare to perform an ida flight and back to Hong Kong just to be present in a Chinese millionaire private tasting. And is that the aura and the almost mysticism brands such as these not only have to know how to create them, also keep them.