Roaring 20s to boost sales of quality tipples
THE maker of Moet & Chandon says that we are set for a ‘Roaring 20s’ as drinkers splash out in new bars.
Moet Hennessy, part of luxury goods giant LVMH, predicted a ‘post-Covid renaissance’ as consumers celebrate after an austere year.
Britons, as well as drinkers in Australia and the US, where restrictions have also lifted, are ‘trading up’, spending more on higher-quality tipples.
Chief executive Philippe Schaus told the Financial Times: ‘Some call it the revenge of pleasure or the new “Roaring 20s”, but it’s clear that people are almost desperate to enjoy food and drink again.
‘There is purchasing power out there and it seems to be translating, not necessarily to more alcohol consumption, but better consumption, and we are benefiting from that.’
Moet Hennessy said there had been a cognac boom in the US following reopening, and that it had struggled to keep up with demand.
After a 15pc fall in sales last year, revenues have bounced back, rising 12pc in the first quarter of this year, compared to the same period in 2019.
It came as Diageo reinstated its £4.5bn dividend and buyback programme after upgrading profit guidance thanks to booming trade in bars and pubs. Economists have predicted that consumers will unleash some of the £200bn of savings built up during the pandemic – money which otherwise would have been spent going out, commuting or travelling abroad.
While many poorer households have seen their incomes fall, wealthy families all but escaped the unemployment crisis, with many actually seeing their situation improve thanks to soaring house prices and stock markets.
Optimism has flooded back into the luxury sector as a result, with several early signs experts predictions are coming true.
Vogue editor Anna Wintour, an all-powerful figure in the fashion industry, predicted a wave of spending as people are desperate to ‘get dressed up’.
The drinks sector was resilient in lockdown thanks to the return of cocktail culture.
Less alcohol was drunk, but consumers bought pricier wines and spirits to treat themselves at home.