LVMH - Part 1: Numanthia

LVMH (Louis Vuitton Moët Hennessy) is the biggest fish in the wine and spirit industry. They own among others the Champagne houses Dom Perignon, Veuve Clicquot, Moët-Chandon, Krug the Scotch brands Ardberg and Glenmorangie, the Belvedere vodka and of course the Hennessy cognac.


In this series I will have a closer look at LVMH's still wine brands:

1. Numanthia (Spain)
2. Château d'Yquem (France)
3. Cloudy Bay (New Zealand)
4. Cheval des Andes (Argentina)
5. Terrazas de los Andes (Argentina)
6. Newton (California)
7. Cape Mentelle (Australia)
8. Domaine Chandon (California, Australia)
9. Bodegas Chandon (Argentina)

Numanthia quick facts:
Vineyards: 49 ha in Toro, Spain
Altitude: 650 - 850 m
Soil: sandy rock surface, clay subsoil layers
Rain: 350 - 400 mm / year
Sunshine: 2600 - 3000 hours / year
Grape: Tinta de Toro

100% new French oak 18-20 months

TOTAL: ~132 000 bottles

LVMH share : 100% (2008)

Talking about Numanthia it has to be noted that it has probably the lowest vine density and certainly the lowest yields on Earth. Among wine producing countries Spain has the lowest average yields of around 30hl/ha but Termanthia's 7.2hl/ha is really something special. In this area they need to keep vine density very low to be able to produce enough juice without irrigation. (High density plantings have around 7400 vines per hectare while low density plantings have around 1850/ha...)

Termes 
Yield: 23hl/ha 
Vineyards: 24 ha 
Vine density: 1100/ha (552hl)
Density: 3x3.5m

Vine age: 50yrs avg

2006: EUR 40

Numanthia 
Yield: 20hl/ha 
Vineyards: 20ha  
Vine density: 1100/ha (400hl)

(estimates)

Vine age: 50yrs+

2006: EUR 40

Termanthia 
Yield: 7.2hl/ha 
Vineyards: 4.78ha 
Vine density: 900/ha (34.42hl)

Vine age: 120yrs+

2006: EUR 130


Market overview:

Estimated value of the 2006 vintage: ~EUR 5.69 million

Pretax profit rate in the fine wine industry (2008): 9.5%

Excise, VAT, etc: ~40%

Retailer margin: ~30%