LVMH mulls bubbly rethink

Consumers have less to celebrate at the moment

French luxury goods giant LVMH has admitted it is considering selling its Pommery champagne brand to rival Vranken Monopole.

The deal is far from done, but industry experts predict the label - the world's fifth-biggest producer - could fetch some 150m euros (£92m; $132m).

The champagne market has been hit hard by the global economic slowdown, and LVMH's bottom line has suffered thanks to slowing sales at its main Moet & Chandon marque.

Nonetheless, LVMH plans to hold onto to Moet, as well as Dom Perignon, Veuve Clicquot and Krug, its other bubbly labels.

Mixing drinks

LVMH is in the throes of a reorganisation, with the aim of focusing on its core luxury brands.

Last month, it reported a 20% fall in profits, blaming more cautious consumer spending.

A deal over Pommery could help Vranken's ambitions of becoming a global powerhouse in champagne.

The firm, whose brands include Heidseick & Cie Monopole champagne, sold some 10.4 million bottles of fizz last year.

The deal under discussion includes the Pommery chateau in Reims, as well as cellars, stocks and supply contracts belonging to the 140-year-old brand.

But LVMH plans to retain parts of Pommery's 741 acres of vineyards, which it acquired in 1990 when LVMH bought the Pommery brand from what is now Danone.