LVMH is to set up a new US subsidiary. The company, whose brands include Glenmorangie Scotch whisky and Hennessy Cognac, will call the subsidiary Moet Hennessy USA. It will be responsible for the commercial and marketing services of its wines and spirits brands.

LVMH will merge its current operations in the US, which include Shieffelin and Co, Cliquot Inc and Millennium Import LLC, into the new entity from today.

The company said: "As of March 1 2005, Moet Hennessy USA will be the only company in the US representing the group's portfolio of brands." The subsidiary will be headed by John Esposito, previously chairman of Schieffelin and Co.

Moet Hennessy also said it would now be taking full control of the US Belvedere vodka business by acquiring the 30% it did not own.

The company's portfolio also includes Moet & Chandon, Dom Perignon, Krug, Veuve Cliquot and Ruinart Champagne; Belvedere and Chopin vodkas; and Green Point, Terrazas de Los Andes, Cap Mentelle, Cloudy Bay, Newton Vineyard and Domaine Chandon California wines.