News of a potential sale of the liquor division of LVMH has the luxury business world buzzing. A report in the Telegraph says that spirits giant Diageo has tendered a 12 billion euro offer for LVMH’s two-thirds stake in Moet Hennessy and that Diageo has set about raising capital with bankers working behind the scenes for several weeks.
The Financial Times asserts that Diageo has not made an unsolicited offer for MoÃ«t Hennessy but might be willing to buy if both parties could agree on a price. So far the talks appear to be more theoretical than actual because LVMH hasn’t decided that they are ready to sell. The potential deal brings up an interesting question, in a softening luxury market which is better to hold onto, fashion brands like Marc Jacobs, Fendi and Louis Vuitton or liquor brands like Glenmorangie whisky, Belevedere and Chopin vodka, and Veuve Clicquot?
By Deidre Woollard | www.luxist.com