LVMH Dives Into the Non-Alcoholic Sparkling Wine Market with Investment in French Bloom

LVMH, a conglomerate known for its dominance in luxury goods, has recently invested in French Bloom, a burgeoning French maker of upscale nonalcoholic sparkling wine. This strategic move into the nonalcoholic beverage market marks a first for LVMH, aligning with a growing trend among consumers opting for low- and no-alcohol options. Despite the traditional appeal of their alcoholic brands like Moët Hennessy, this decision comes at a time when global demand for Champagne and spirits appears to be waning.

French Bloom, established in 2021, is a brand co-founded by Maggie Frerejean-Taittinger and Constance Jablonski. It has rapidly expanded its presence to 30 countries, doubling its business annually. The company is projected to produce nearly half a million bottles this year, highlighting a clear consumer interest in sophisticated nonalcoholic alternatives.

This investment reflects LVMH’s adaptation to a changing market landscape where consumers increasingly seek quality products without alcohol. French Bloom has invested significantly in research and development to perfect its nonalcoholic sparkling wines, a process that includes cold-vacuum distillation to gently remove alcohol while preserving flavors.

With this venture, LVMH not only taps into the escalating market for nonalcoholic drinks, projected to grow annually by 7% from 2023 to 2027, but also provides a premium option that defies the usual expectations for nonalcoholic beverages. This strategic move is part of a broader effort by LVMH to diversify its portfolio and explore growth opportunities across various sectors. Despite facing a downturn in sales within its alcoholic brand division, Moët Hennessy, LVMH is proactively adjusting to market shifts and consumer trends by investing in promising new categories. This initiative underscores LVMH’s foresight in catering to evolving consumer preferences and reinforcing its presence in growth markets.

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