This audio is generated automatically. Please let me know if you have any comments.
Moët Hennessy has announced a significant minority investment in French Bloom, a premium non-alcoholic sparkling wine producer. Financial terms of the deal were not disclosed.
Debuting in 2021, French Bloom is sold in more than 30 countries and is made from a blend of French Chardonnay and Pinot Noir. In a press release, French Bloom said it aims to meet the intersection between high-quality French wines and the growing demand for moderate alcohol consumption.
In a statement, moët Hennessy CEO Philippe Schaus called French Bloom a pioneer in non-alcoholic wine.
“This investment is consistent with Moët Hennessy’s key strategic initiatives and demonstrates our commitment to providing high-quality non-alcoholic choices to consumers who control their alcohol intake,” said Schaus. “We are confident that our expertise in wine and spirits, combined with the outstanding innovation and visionary leadership of the Bloom team in France, will enable us to shape the future of this category.”
Rodolphe Frerejean-Taittinger, CEO of Bloom in France, said in a statement: moët Hennessy will help accelerate brand development as the non-alcoholic category evolves rapidly.
This investment comes after owning and operating luxury goods conglomerate LVMH. moët Hennessy reported a 12% decline in wine and spirits sales in the first half of the year. On the company’s most recent earnings call, CFO Jean-Jacques Guiony suggested that “the current global situation, whether geopolitical or macroeconomic, does not encourage people to cheer and open bottles of champagne.”
As many younger consumers report drinking less alcohol or quitting alcohol altogether, adult beverage companies are working to diversify their portfolios with non-alcohol and low-alcohol products. Last month, Guinness maker Diageo announced that it had acquired Ritual Zero Proof non-alcoholic spirits, which sells non-alcoholic alternatives to gin, whiskey and tequila.
Although non-alcoholic cocktails are widely sold, non-alcoholic champagne, aimed at drinkers 21 and older, is still a niche category. According to Grand View Research, the non-alcoholic wine category is expected to be valued at $2.26 billion in 2023, growing at a CAGR of 6.4%.
