Moet Hennessy Workers Strike Over Canceled Bonuses Amid Profit Slump

Workers at Moet Hennessy, LVMH's prestigious wines and spirits division, are set to commence a series of strikes this Friday. The industrial action, organized by branches of the CGT union, is a direct protest against the cancellation of annual bonuses, signaling growing discontent amidst a period of significant profit decline for the business. This marks a notable challenge for Alexandre Arnault, son of billionaire Bernard Arnault, who recently assumed the role of deputy CEO for the division, as the strike encompasses all of Moet Hennessy's major brands, from Hennessy cognac to Veuve Clicquot champagne.

The CGT union has explicitly stated that Moet Hennessy opted to cancel all profit-sharing bonuses and other annual benefits this year, a decision that has drawn sharp criticism given LVMH's commitment to maintaining stable dividends for its shareholders. Moet Hennessy has not yet responded to requests for comment regarding its compensation policy for the current year. The union's strategy involves limited strike days planned across "all of the houses' sites in the coming days and weeks," as detailed in flyers to be distributed to workers, with the primary goal of compelling management to engage in negotiations concerning pay.

The initial walkouts are scheduled for Friday at the renowned champagne houses of Moet & Chandon and Veuve Clicquot-Krug. According to union sources, further strikes are anticipated, including at Hennessy, over the next two months. This broad application of strike action across Moet Hennessy's key operations underscores the widespread nature of the workers' grievances and poses a significant operational challenge for the luxury giant.

Strikes are a rare occurrence within the luxury industry, making this development particularly noteworthy. After years of robust growth, the sector has recently encountered headwinds, including a slowdown in sales in China, reduced consumer spending due to price hikes, and ongoing uncertainty surrounding US President Donald Trump's tariffs, all of which have collectively dampened demand. These factors have contributed to a challenging environment for luxury brands globally.

LVMH's drinks business, which accounts for approximately 7% of the group's total sales, reported an operating profit of 524 million euros ($610.98 million) in the first half of 2025. This figure represents a substantial 33% decline compared to the previous year, highlighting the financial pressures facing the division. Earlier this year, LVMH finance chief Jean-Jacques Guiony took over as CEO of the division, with 33-year-old Alexandre Arnault appointed as his deputy, indicating a recent leadership restructure at a critical juncture for Moet Hennessy.

While the exact number of workers who will participate in the strike remains uncertain, the CGT is one of France's largest unions and holds the largest representation among Moet Hennessy's workforce. This strong union presence suggests that the call to strike could see significant adherence, potentially impacting production and distribution across some of the world's most iconic luxury beverage brands.