Manus Cranny, Bloomberg TV anchor at Bloomberg Inc., speaks with Philippe Schaus, CEO of Moët Hennessy, at NRF 2024: Retail's Big Show.
Consider the conventional luxury buying experience — it’s not likely one with rows upon rows of products on shelves. And yet, when it comes to purchasing high-end wines and spirits, it may well be from a place that doesn’t come “anywhere close to typical luxury retail.”
So says Philippe Schaus, CEO of Moët Hennessy, the wines and spirits division of LVMH. Schaus is doing his best to change that view, elevating the perception of its products by better telling their story. Quality can be conveyed by the way products are shown, “and here’s where we’re trying to learn from our friends in the fashion world, the beauty world, in the world of watches and jewelry, to elevate our products. And it works.”
Schaus sat down with Bloomberg TV anchor Manus Cranny for a keynote at NRF 2024: Retail’s Big Show. The talk touched on market differentiation, creative attempts to engage consumers, strategic collaborations and more.
The category is an interesting one, with the unique challenges of offering a “static” product. “We need to continue to make our brands attractive,” Schaus said. “We need to continue to build on this DNA.” Some of the brands are 300 years old, and “You need to keep this magic balance between modernity and tradition, between craftsmanship and innovation, in each of these brands,” he said.
He shared the story of the Moët & Chandon Champagne Bar at Harrod’s in London, a luxury experience in the middle of the department store’s ground floor beauty department. The 1,345-square-foot space allows shoppers to sample the full range of Moët & Chandon cuvées by the glass, as well as enjoy food pairings and order by the bottle. The experience includes a hand-sculpted bar and shimmering chandelier.
The Domaine Chandon winery in California’s Napa Valley, meanwhile, offers a variety of experiences including a club member lounge and bespoke “sensory adventures” for up to 12 guests, complete with personal concierge, music and tastings. Chandon mixes nature into the experience, Shaus said, mingling with craftsmanship, shopping and great food.
“We try to bring this whole experience to an entirely new level,” Schaus said, “miles away from your bottle on a shelf in a liquor store.”
These experiences reinforce a higher price floor, because they help communicate the quality behind the product. It’s a long-term ambition, he said, “but this is the direction we hope to take.”
Cranny talked about the way social media such as Instagram had been a powerful “visual vehicle” for Louis Vuitton in other areas. He wondered how well luxury wine and spirits does with social media, and whether it brings momentous change.
“Clearly, fashion works extremely well on social media,” Schaus said. Fashion shows bring a strategic boost, for example, and brands might now have six or eight shows a year, continuing to build momentum. It doesn’t work the same for wine and spirits; Dom Perignon has a new vintage every year, but it’s still Dom Perignon.
The key to infusing energy, then, is through collaborations with celebrities, artists and others. Schaus spoke of public figures like Lady Gaga, Daniel Craig, Jackson Wang, Alicia Keys, Roger Federer and Jay-Z. They might be partners in restaurants, design bottles, co-own brands or take part in campaigns.
They also might help introduce the brands to new audiences. Keys, for example, co-starred with Chinese concert pianist Lang Lang in the Paradis is on Earth campaign for Hennessy Paradis, shot in the Utah desert. In late 2023, Hennessy also announced a multiyear extension of its global marketing partnership that spans the NBA, WNBA, NBA G League, USA Basketball and the Basketball Africa League.
The brands are also enjoying a moment in time where consumers are “drinking less and drinking better,” Shaus said. He expects moderate price increases in 2024, thanks to continued efforts to make a better product, as well as rising costs of materials like glass. But it is all monitored carefully, he said, to ensure the brands don’t leave the world of consumer expectations. Different markets have different challenges, opportunities and geopolitical situations.
All the same, Moët Hennessy is raising a glass to the year to come. Shaus wished those in attendance a great 2024 — one in which all hopes come true, but not the worries. A luxury, to be sure.
