LVMH BEATS ECONOMY WITH EXPENSIVE BOTTLES

In an interview with Bloomberg, Xavier Ybarguengoitia, chief executive of Paris-based Estates & Wines, a division of LVMH Moet Hennessy, says the company's strategy is selling expensive bottles despite the tough economic conditions. He said demand for wines that cost $15 or more has risen, and Estates & Wines will focus on that top 1% of the market. As a result, he said, the Estates & Wines division has experienced "double-digit growth" in the past six years, outpacing Moet Hennessy.

Ybarguengoitia said the company doesn't need any more vineyards at the moment, but may consider "buying some more in 2011," particularly in a premium wine area that focuses on the top end of the market.

Wine & Spirits Daily