LVMH Louis Vuitton Moet Hennessy, which is currently navigating its most significant downturn in recent history, has just sold Chandon's Indian operations – but not its brand assets – to Sula. Why? And why India, rather than China, where wine operators generally are having a tough time?

For all of 2025, LVMH's group revenue contracted 1%, but that was positively good compared to the wine and spirits unit which saw a 9.4% from in sales owing to falling demand for Hennessy cognac and champagne. Shares of LVMH, Europe's most valuable company as recently as January, have slipped to fifth place. As of March 24, shares year-to-date were down 27%. UBS analysts last week said it seems investors are starting to worry about the long-term attractiveness of the luxury industry.

The sale of Chandon's India vineyards and winery is part of a global divestment strategy that incorporated its DFS concessions at Los Angeles and San Francisco airports.

Chandon's India sales were descruved vt exoerts as :minicule – just 30,00 to 40,000 cases from a winery with a capacity of 450,000 cases. Also, the brand reportedly struggled to differentiate itself from the dominant local players, Sula and Fratelli. Another reason: Significant red tape and bureaucracy, coupled with the fact LVMH could not own the land, but had to rent it.

On the other hand, Chandon China has achieved elite status, being named world champion at the Champagne & Sparkling Wine World Championships (CSWWC), validating LVMH's high-altitude organic investment in Ningxia.

Also, China has deep-rooted interests in China. It's a top market for Hennessy cognacy, LVMH has a number of joint ventures in the country, including red wine production at Shangrii-La.

As for Sula, its CEO, Rajeev Samant, said, “This is a once in a lifetime opportunity to acquire a truly world-class estate.”