Five Things You Didn’t Know About LVMH

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Mergers, Mergers

The French multinational luxury goods conglomerate was formed after a merger in 1987 between Louis Vuitton with Moet Hennessy. Moet Hennessey was also a product of a merger in 1971, between champagne producer Moët & Chandon and cognac manufacturer Hennessy.

Christian Dior

With ownership of 40.9 percent of LVMH shares and 59.01 percent of its voting rights, Christian Dior is the main holding company of LVMH. As the majority shareholder of Dior, Bernard Arnault is also the chairman of both LVMH and Dior, and is CEO of LVMH. The second-richest person in France, Arnault’s wealth is estimated at approximately US$37.3 billion.

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Bernard Arnault

After gaining a majority of LVMH shares and voting rights, Arnault was unanimously elected chairman of the LVMH executive management board in 1989. In the next decade, LVMH’s value skyrocketed, increasing by more than tenfold, with its profit increasing by more than 500 percent. His ambitious development plans allowed for LVMH’s eventual progression to one of the largest luxury groups in the world.

Long History

Of the 60 subsidiaries that LVMH controls, many are managed independently, with the oldest brand, wine producer Château d'Yquem, dating back over four centuries ago. Aside from its characteristic sweetness, wines from Château d'Yquem are known to be able to last for about 100 years, if kept properly. As it ages through the century, the wine’s fruitiness will be less apparent, as it integrates with its other complex layers.

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LVMH Young Fashion Designer

The luxury goods conglomerate is no stranger to the art world. Aside from supporting various art exhibitions in Paris including the "Picasso et les maîtres" and the "Le grand monde d’Andy Warhol", the LVMH foundation also created an international competition, open to beaux-arts students from all over the world. The LVMH Young Fashion Designer Prize officially made its debut in November 2013, highlighting emerging young designers from all over the world with the winner being awarded a €300,000 grant and a year’s worth of mentoring.

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