The Art of Slowing Down
101: If LVMH is a Partner of Formula 1, I Should Be Being Fois Gras’d with Their Champagne
“For the past three months, Chinese tourists have been traveling less and buying less [when out of the country]” – LVMH Deputy CEO Stephane Bianchi
And water is wet. It seems to me that for every one step LVMH takes forward they get in their own way and take two backwards. I spent a few days in the South of France with my wife and came across several men’s pieces at the Louis Vuitton boutique in Saint Tropez that I may or may not have purchased for myself.
I also took the time to look through other men’s pieces and ended up just shaking my head. I understand that fashion in subjective, there are however certain things that just do not work.
Like many other store visits, I’ve done recently the Louis Vuitton boutiques were empty and this included the fragrance boutique that I walked by and quickly popped into. Another odd thing I noticed was a Celine bag that looks like a Louis Vuitton bag. It’s an odd design choice given that LVMH owns both brands and if I were looking at turning the business around, it is something I would cut immediately.
I also spent some time in Brunello Cucinelli since I like their products and believe that they are what many men shopping for luxury apparel are looking for. I ended up finding a nice look for an upcoming party I’m attending (below) and also took some pictures of men’s and women’s pieces that I think are one the right track for what legacy luxury consumers are looking to purchase.
Since I am assuming you’re not here to read the rest of my shopping expedition, let’s move on to my home Grand Prix in Monaco! While most locals get out of town this week I really do enjoy being here and have always met some interesting people from around this world. This year was no different and I would say the most interesting person I met was a racehorse veterinarian from Saudi Arabia.
On Friday during Practice, my wife and I were fortunate enough to have been on a yacht with an excellent view of the practice sessions. One of the benefits to being on the water is easy access to things that make any experience more enjoyable like Champagne. Before I get into why this is something I noticed, let’s go through LVMH’s recent partnership with Formula 1.
Last year LVMH entered into a landmark ten-year global partnership with Formula 1. This deal illustrates one of the most ambitious collaborations between luxury and sport, involving several of LVMH’s flagship brands. Louis Vuitton for example, serves as the title sponsor of the Australian Grand Prix and is responsible for crafting bespoke trophy trunks, including the iconic one used at the Monaco Grand Prix. TAG Heuer replaced Rolex as the official timekeeper of Formula 1, reestablishing its longstanding connection to motorsport (they are also a Red Bull Racing Sponsor).
Getting back to my point about Champagne, as part of the partnership, Moët Hennessy became the official drinks sponsor of Formula 1. This includes placing its Champagne brands such as Moët & Chandon and Veuve Clicquot at the heart of the sport’s most visible and celebratory moments, including podium ceremonies and VIP hospitality. What has been shocking is how difficult it was to actually find Moët & Chandon and Veuve Clicquot in places where it should have been easily accessible.
If LVMH is a Partner of Formula 1 I should be being fois gras’d with their Champagne. To start with the vessel we were on, they did have Moët & Chandon however you had to ask for it. The bar staff did have another brand of Champagne (I forget the name; however I did confirm at the time it was not an LVMH label) that was very good, and it was very popular with me and our friends. My wife and I ended up on another vessel later in the evening and again plenty of Heineken however the champagne being offered was Billecart-Salmon. I did ask if Moët or Veuve were available and was told no.
Moving on to Race Day, my wife and I were fortunate enough to have been given access to the Red Bull Energy Station. At the Monaco Grand Prix, the Red Bull Energy Station stands out not just for its design but for the engineering feat behind it. Custom-built as a floating, modular structure, it is pre-assembled off-site and transported by sea on barges to Monaco, where it is anchored securely within the harbor. Over several days, the components are assembled into a multi-level, fully functional hospitality venue complete with kitchens, bars, lounges, and viewing decks. Power, water, and connectivity are routed directly from the port to support a seamless luxury experience. During the Monaco Grand Prix, the Red Bull Energy Station offers access to food, cocktails, front-row views of the track and harbor action, and immersive entertainment. This included DJ sets and driver meet-and-greets.
Keeping in mind that Bernard Arnault completed a “hot lap” with Max Verstappen in Monaco this year (I heard he handled it well so I must give credit where it’s due) and TAG is a sponsor of Red Bull Racing (more on this in a minute), one would think that Moët & Chandon would be openly flowing. Nope! Not only was it essentially hidden at every bar on the station, but it was also BEING USED AS A MIXER for Red Bull based cocktails like the Summer Bellini.
My wife and I were also fortunate enough to have been given a tour of the pit lane and Paddock. In the Paddock area there was also no Moët or Veuve, however I will caveat this with the fact that this area is different than other Formula 1 venues since it’s in Monaco and built in the harbor.
If I were Alexandre Arnault I would be personally distributing cases of Moët & Chandon and Veuve Clicquot to every single yacht in Port Hercule and Port de Fontville. I would also be ensuring that every bar and restaurant (within walking distance) of the track all the way to the train station was stocked with LVMH products. As a quick note, my wife and I were walking home and stopped at a few bars and restaurants where people were outside celebrating and getting drinks; none of them had Moët or Veuve Clicquot in stock or if they did, it was not visible which to me is a massive, missed advertising opportunity. I would also ensure that our products were not being used as mixers since in my opinion it devaluates the whole premise of the brands.
During the weekend one of my favorite properties The Maybourne Riviera posted an Instagram story with Max and Yuki “modeling” TAG timepieces. Some quick observations are that in many of the pictures the timepiece had glare from light or didn’t have any visible features to illustrate that it was a TAG. Max and Yuki also looked absolutely miserable in the photos and neither looked like they wanted to be there. I suppose this could have been the goal of the “ads” since I’m talking about it, however I believe there are many much more effective ways to market TAG times pieces.
While I do understand, based on a Morgan Stanley report, that TAG Heuer’s position in the list of top 20 Swiss watch brands based on sales went from 15th in 2023 to 11th in 2024. It doesn’t change the fact that the market is still Rolex and everybody else. Rolex has 32% of total market share and if you include Patek Philippe, Cartier and Omega that number jumps to 50%.
I believe that LVMH missed a huge marketing opportunity by spending (allegedly) $1bn over ten years partnering with Formula 1. What they should have done is structure something similar to HP and Ferrari or Red Bull and Oracle where LVMH pays an F1 team somewhere in the range of $100m annually to become the main sponsor of the team. This would accomplish a few things.
First, it would allow them to plaster two F1 drivers head to toe in LVMH apparel. While the company does have brand ambassadors, they could take this concept to a whole new level. Secondly, and in my opinion most importantly, they would become a very attractive team to follow to the 40% of F1 fans who are female (this is growing exponentially based on data I have gathered). Women are an important demographic to LVMH, and LVMH could take the concepts that brands like Elemis have started with Aston Martin or Charlotte Tilbury in F1 Academy to an entirely different level. Thirdly, it would not lock the company into a ten-year, $1 billion contract (there may be an exit clause that I do not know about). Lastly, this type of strategy could be an investment for the company. I would suggest taking it so far as to purchase an F1 team given the increasing popularity and the fact that LVMH is getting into the outright purchasing of teams in football etc. As an example, a group of investors, including actor Ryan Reynolds, agreed to a deal to pay €200 million for a 24% stake in the Alpine Formula One team (Alpine is a French company). This values the team at approximately 1.5€ billion and think of the power / return of marketing LVMH could derive from something like “LVMH Alpine F1”.
The points I have tried to make in this piece illustrate some of the changes LVMH could make in order to start turning things around. LVMH Deputy CEO Stephane Bianchi also recently stated,