LVMH x Google: the group invites artificial intelligence to liquors

French luxury and spirits group LVMH is teaming up with Google to boost its operations through artificial intelligence technology.

Thanks to Google Cloud, LVMH and Google will implement artificial intelligence systems and machine learning technologies “to assist human talent” in LVMH brands. The group holds prestigious brands such as the well-known cognac brand and the world’s best-selling brand Hennessy.

LVMH CEO Tony Belloni said, “This significant and unprecedented new partnership with Google Cloud is a reflection of our great ambitions in this area.”

Internally, the technology tools will be used to forecast demand and optimize inventory. They will also be used to communicate with employees, develop new products, improve IT infrastructure and more.

With Google Cloud, LVMH will be able to build what it calls its “culture of innovation” by introducing new certification programs for employees. Notably, the two firms will launch a data and artificial intelligence academy in Paris.

Among other things, the collaboration will enable LVMH to create new personalized experiences for its clients.

By combining our best approaches in our respective industries, it will lead us to take a step forward in the use of data and AI,” Belloni continued.

For us, privacy, personalization and luxury are synonymous, and that will always remain the case. The new opportunities offered to our customers are exactly what our talented teams are working for at LVMH: a unique and unforgettable experience.”

For his part Thomas Kurian, CEO of Google Cloud added: “We are proud to establish such an innovative and broad partnership with LVMH to drive their innovation through cloud technology and AI capabilities. Together, we can help drive the future of customer experience in the luxury industry.”


A partnership in the midst of growth for LVMH

LVMH announced that they recorded Q1 2021 organic revenue growth of 36%, reaching €1510 million. A significant increase considering that in the same period of 2019, LVMH recorded an organic growth of 17%.

As for its spirits, LVMH said volumes of Hennessy cognac rose 28% during the three-month period, compared to 2020. The group is continuously developing its cognac brand and last September teamed up with architect Frank Gehry to create 150 bottles of limited edition XO cognac to celebrate 150 years of the same expression. In addition, Hennessy was also crowned Cognac Brand Champion 2020.

Geographically, the group announced experiencing “robust” demand in the United States and a “strong rebound” in China.

Despite the positive results, the group says regarding the remainder of 2021 the situation remains “turbulent” due to the ongoing covid-19 pandemic.

However, the brand said it is well equipped to take advantage of the “expected recovery in 2021” and regain “growth momentum” for all its businesses.

Among other Hennessy projects, they equipped their Pont-Neuf plant with a second bottling line.

The industrial plant is 130 meters long and has 35 machines. It will produce 20,000 bottles per hour from the beginning of July.

It is still underway. In less than a month, it will produce 20,000 bottles per hour, like its big sister launched in November 2017. The second production line at Hennessy’s cognac bottling plant in Salles-d’Angles is almost operational. Two or three more adjustments, final checks, and the new industrial facility will double the production capacity of the Pont-Neuf site. Final start-up by July 2021.

Don’t drink and drive. Enjoy responsibly.


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