Hennessy, a very popular drink, may suffer a shortage for the remaining of the year. It’s growing popularity has made it difficult for the company to keep up with inventory.
Louis Vuitton Moët Hennessy (LVMH,) owner of Hennessy Cognacs, issued a warning back in April of this year advising consumers that due to the significant increase in Hennessy sales, the availability of Cognac stocks can possibly be impacted for the rest of this year.
LVMH released their first quarter earnings which reported record revenues of €9.9 billion in the first quarter of 2017, which is up 16% from the first quarter of 2016.
On a conference call that took place back in April of 2017, LVMH identified and warned why the potential Hennessey shortage may occur. A LVMH representative stated that their wines and spirits business grew 13%, with champagne volumes up 7% and Hennessy volumes up by 21% as a result of increased sales volumes. However, LVMH record first quarter revenues were driven by 20% revenue growth in Asia, 14% growth in Europe and only 9% growth in the U.S.
Although, revenues from the United States grew at a slower pace than other global regions, the sales of Hennessy Cognac skyrocketed.
“There may be issues of availability in the later part of the year given the consistently strong demand,” said a Hennessy rep.
So to all of you Cognac enthusiast, who love the Hennessy brand, you may want to stock up before the potential shortage.