Demand for LVMH’s Champagne brands is drying up after surging during the COVID-19 pandemic. The CEO of Moët Hennessy noted that there was a “general sense of revenge pleasure” among consumers after being stuck at home. However, with the effects of COVID-19 fading and rising inflation, Champagne consumption at home has dropped. "2023 is a bit more complicated, because this effect of COVID is fading out, and there’s a lot of inflation in all countries," said Philippe Schaus, Moët Hennessy Chief Executive Officer. Despite the drop in consumption at home, demand remains high in beach clubs, nightclubs and high-end restaurants. LVMH is the biggest maker of Champagne since it also owns the Krug, Ruinart, Veuve Clicquot and Mercier labels. Organic sales at the drinks unit fell 3% in the first half of the year due to a slowdown in Cognac consumption in the US.