Tue May 13 04:50:19 UTC 2025: ## LVMH Heir Alexandre Arnault Takes on Challenging Role at Moët Hennessy

**PARIS** – Alexandre Arnault, son of LVMH chairman Bernard Arnault, faces a crucial test in his bid to lead the luxury conglomerate. His recent appointment as deputy to Moët Hennessy’s new CEO, Jean-Jacques Guiony, comes as the division struggles with declining sales and the threat of escalating US tariffs.

Moët Hennessy, the wines and spirits arm of LVMH, saw sales fall for the second consecutive year in 2024, with operating profits shrinking by a third. This decline is attributed to weakening demand in the US and China, exacerbated by existing 10% US tariffs on EU imports (set to rise to 20% in July), and the potential for even higher tariffs in response to a trade dispute.

Arnault and Guiony have announced a 13% staff reduction and a refocusing of marketing efforts on flagship brands. They are also emphasizing the Moët Hennessy Private unit, which caters to high-end clientele, as a key growth area. This unit’s success, highlighted by the £16 million sale of a cask of Ardbeg Scotch in 2022, is seen as crucial to the division’s recovery.

While Moët Hennessy’s contribution to LVMH’s overall profit has significantly decreased (from around 20% in 2015 to 6% in 2024), analysts suggest a potential €14 billion valuation for the division if restructured. However, Bernard Arnault has dismissed any suggestion of divestment. Alexandre Arnault’s performance over the next two years will be closely watched as he navigates these challenges and aims to prove his capability to lead within the family business. His ability to revive Moët Hennessy’s performance will be a significant factor in the succession plan for the $280 billion luxury empire.

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