Moët Hennessy announced a significant minority investment in French Bloom, a luxury nonalcoholic sparkling wine maker. Financial terms of the deal were not made public.
French Bloom, which debuted in 2021, is sold in over 30 countries and is made with French chardonnay and pinot noir blends. In a press release, French Bloom said it aims to hit the intersection between high-quality French wine and the growing demand for consuming alcohol in moderation.
In a statement, Moët Hennessy CEO Philippe Schaus called French Bloom a pioneer in the nonalcoholic wine category.
“This investment aligns with Moët Hennessy’s key strategic initiatives, demonstrating our commitment to offering high-quality alcohol-free choices to consumers who moderate their alcohol intake,” said Schaus. “We are confident that our expertise in Wines and Spirits, combined with French Bloom team’s exceptional innovation and visionary leadership, will enable us to craft the future of this category.”
French Bloom CEO Rodolphe Frerejean-Taittinger said in a statement the guiding hand of Moët Hennessy will help it accelerate the brand’s development as the nonalcoholic category quickly evolves.
The investment comes after LVMH, the luxury goods conglomerate that owns and operates Moët Hennessy, reported a 12% decline in its wine and spirits revenues in the first half of this year. On the company’s most recent earnings call, CFO Jean-Jacques Guiony suggested “the current global situation, be it geopolitical or macroeconomic, doesn’t lead people to cheer up and open bottles of champagne.”
As many younger consumers report drinking less or abstaining from alcohol altogether, adult beverage companies are working to diversify their portfolios with no and low-alcohol offerings. Last month, Guinness maker Diageo announced its purchase of Ritual Zero Proof Non-Alcoholic Spirits, which sells booze-free alternatives to gin, whisky, tequila and more.
While nonalcoholic cocktails are widely available, zero-proof champagne targeted at drinkers over 21 is still a niche category. The nonalcoholic wine category was worth $2.26 billion in 2023, and is projected to grow at a compound annual growth rate of 6.4%, according to Grand View Research.