LVMH Champagne Workers Strike Over Canceled Bonuses

Employees in LVMH's Champagne division in France are mobilizing against the withdrawal of a long-standing profit-sharing bonus, according to the CGT Champagne inter-union. The dispute centers on the cancellation of the profit-sharing bonus at Moët & Chandon, which has reportedly been in place since 1967. José Blanco, general secretary of the CGT Champagne inter-union, noted that this marks the first time the bonus has been withdrawn. Employees were also informed that a separate value-sharing bonus would be canceled, with LVMH citing slightly lower profits as the justification for the decision.

Following strikes on December 5 and 8, a rally was held last Thursday outside Moët & Chandon's head office in Épernay. Blanco reported that around 600 people attended the demonstration, representing various LVMH Champagne houses, including Moët & Chandon, Veuve Clicquot, and Krug, along with support from other Champagne producers. The event, originally organized as an internal information meeting at Moët & Chandon, escalated into a larger protest where employees gathered on Avenue de Champagne and blocked traffic. Further actions are currently under consideration by the union, though no dates have been finalized. LVMH did not respond to requests for comment regarding the dispute.

The protests coincide with financial headwinds impacting LVMH's Wines & Spirits division. The division, which includes Champagnes, wines (such as Château Cheval Blanc), Hennessy cognac, and Glenmorangie whisky, experienced a significant decline in 2024. Revenue for the year fell by 11% year-on-year to €5.9 billion. This trend continued into the first nine months of 2025, during which the division's revenue dropped a further 7%, primarily attributed to factors including customs duties.

Despite the overall decline, the group observed some variations within its segments during the third quarter of 2025, estimating that sales returned to growth at constant exchange rates. This improvement was noted particularly in Champagne and rosé wines, while demand for cognac remained weak. HSBC analysts report that Champagne and wine sales accounted for 4% of LVMH’s total €84.7 billion revenue in 2024, with cognac and spirits contributing 3%. The bank forecasts an 11% drop in Champagne and wine sales for the fourth quarter of 2025.

In response to these financial pressures, the Wines & Spirits division announced plans to reduce its workforce in the spring. The division also underwent a leadership change in February, with former group chief financial officer Jean-Jacques Guiony taking charge, assisted by Alexandre Arnault, the son of LVMH CEO Bernard Arnault.