Brief History of LVMH

LVMH Brief History 

LVMH Moët Hennessy • Louis Vuitton S.A. , usually shortened to LVMH, is a French holding company and the world's largest luxury goods conglomerate. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands. These daughter companies are, to a large extent, run autonomously. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they created a $4 billion dollar merger with fashion house Louis Vuitton in a to form the current group.

Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42.38% of its shares, and 59.3% of its voting rights. Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH. His successful integration of various famous aspirational brands into the group has inspired other luxury companies into doing the same. Thus Gucci (now part of the French conglomerate PPR) and Richemont have also created extended portfolios ofluxury brands. The oldest of the LVMH brands is wine producer Château d'Yquem, which dates its origins back to 1593.