Market
Champagne and Cognac Lead LVMH's Wines and Spirits Division Back to Growth in H1 2026
LVMH's wines and spirits division returned to growth in the first half of 2026, with Champagne and Cognac driving improved performance across the luxury group after two difficult years.
What happened
LVMH's wines and spirits division returned to growth in the first half of 2026, with Champagne and Cognac at the forefront of a recovery that had been long anticipated across the luxury drinks industry. Moët Hennessy, the division's standard-bearer, saw both categories contribute meaningfully to improved results across the wider group.
After two years that tested the resilience of even the most established names in fine wine and spirits, the turnaround marks a notable shift in fortunes for France's most prominent luxury conglomerate.
Why it matters
The return to growth is more than a corporate milestone — it carries weight for the broader premium drinks market. Champagne and Cognac are widely regarded as bellwethers for luxury consumption, and their recovery suggests that appetite for high-end wines and spirits is reasserting itself after a prolonged period of contraction.
For those watching the Champagne category in particular, the news offers reassurance that the structural demand underpinning the region's reputation remains intact. The two-year downturn had raised questions about whether post-pandemic enthusiasm for prestige bubbles had run its course; the H1 2026 figures suggest otherwise.
The performance of these two categories also helped lift results across LVMH's luxury group more broadly, underscoring the strategic importance of wines and spirits within one of the world's largest luxury conglomerates.
Context
LVMH's wines and spirits arm, anchored by Moët Hennessy, encompasses some of the most recognised names in both Champagne and Cognac. The division had endured a challenging stretch spanning two years, during which softening consumer demand and shifting market dynamics weighed on volumes and revenues.
The recovery reported for the first half of 2026 arrives against a backdrop of cautious optimism within the luxury sector, where selective consumers have continued to prioritise quality and provenance. Champagne, as a category defined by both occasion and aspiration, is particularly sensitive to shifts in consumer confidence — making its resurgence a meaningful signal for the industry at large.