Moët Hennessy partners with Alibaba in China

Moët Hennessy has partnered with Alibaba Group, the world’s biggest e-commerce company, as the total sales value of western spirits is set to surpass RMB 100 billion (US$14.62 billion) on Alibaba’s platforms this year.

Head of Tmall’s food division Wang Dan (right) and Andrew Khan (left), vice president of marketing at Moët Hennessy Diageo China, at the signing ceremony

Through the partnership, Moët Hennessy will offer exclusive benefits and priority purchase privileges for some of Moët’s newest products in China to Alibaba’s retail platform Tmall, its Luxury Pavilion and the group’s Herma supermarkets.

To mark the deal, Moët launched its VSOP Cognac ‘Privilège’ last Friday, which pays tribute to the 200th anniversary of Moët Hennessy’s classic Cognac blend, exclusively on Tmall.

“Moët Hennessy has moved at a faster rate than any other western spirit brands on our platform, both in new retail initiatives and everyday operations,” said Wang Dan, head of the food division at Tmall.

The deal was also announced at a time when western spirits’ gross merchandise volume on Alibaba’s platforms are forecast to rise by roughly 50% this year to surpass RMB 100 billion, up from last year’s RMB 60 billion (US$8.79 billion), according to an August report jointly released by Tmall and Moët Hennessy.

“Historically, the majority of our business comes from southern [Chinese] cities and partnering with Tmall is a great way for us to develop opportunities in other regions,“ Andrew Khan, vice president of marketing at Moët Hennessy Diageo China, said.

“Tmall has a particularly strong foundation in Hangzhou and other cities in the eastern region, and can help us uncover deeper insights into consumer behaviours and preferences.”

The brand also noticed that consumers are showing a growing interest in smaller sized wine and spirit bottle formats.

The brand debuted its 200ml version of Moët & Chandon Champagne, which consumers can drink in one sitting straight from the bottle, according to the company. The mini-bottle trend caught on, and the brand later expanded its offerings with Tmall exclusives such as the 200ml version of its Hennessy Classivm and the 100ml Glenmorangie Scotch whisky.

According to a March report on China’s wine market by the Hong Kong Trade Development Council, 73% of the respondents preferred smaller bottle sizes (such as 375 ml), in particular female respondents (80%).

In other parts of Asia such as South Korea, smaller canned drinks are also all the rage currently.