Lower demand for Champagne weighed heavily on French luxury goods group Moët Hennessy Louis Vuitton (LVMH) in 2009, despite signs of a recovery in the fourth quarter.

Wine and spirits sales fell by 14% on a like-for-like basis for the 12 months to the end of December, to EUR2.74bn (US$3.75bn), said the producer of Moet & Chandon Champagne, Hennessy Cognac and Glenmornagie Scotch whisky yesterday (4 February).

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Sales were EUR3.1bn in 2008.

Profits from recurring operations in the wine & spirits division fell by 28% to EUR760m, from more than EUR1bn in 2008.

The downturn in demand, echoed by most other major Champagne and Cognac producers, weighed on LVMH as a group. It reported like-for-like group-wide sales down 4% to EUR17bn and like-for-like profits down 8% to EUR3.35bn for the year.

However, drinks sales “improved significantly” in the fourth quarter, said the group.

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“Hennessy, which demonstrated good resilience in 2009, registered growth in the fourth quarter due to strong renewed momentum in the United States and in China,” it said.

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