Employees from Pernod Ricard and LVMH Champagne houses in Reims, France, went on strike on 13 May over wages and job uncertainty.

More than 100 employees from the Mumm and Perrier-Jouët vineyards joined on the picket line, according to the Champagne branch of the CGT union, and demonstrated in front of the gates of the Mumm cellars.

According to a report by The Financial Times, 1200 jobs will be cut across the Moët Hennessy portfolio as the company scales back its growth ambitions. 

Secretary of the economic and social committee at Mumm Stéphane Levasseur told Just Drinks that around 60 Mumm employees took part in the Champagne strike action.

He said the stoppage was over a failure to secure wage increases in annual negotiations and concerns over the “potential sale of Mumm by Pernod Ricard to another buyer”.

“There will certainly be other strike movements in the coming weeks,” he said.

“And these will be amplified if the sale of Mumm Champagne is confirmed.” 

Levasseur also said that the “social climate is very degraded at Mumm and in the Pernod Ricard group.”

The Australian Financial Review published an article last week entitled: “How the Moet Hennessy empire spiralled into crisis”.

The article noted: “Moet Hennessy, the wine and spirits empire owned by France’s LVMH, went from generating €1 billion in cash in 2019 to burning through €1.5 billion last year, according to documents seen by the Financial Times, as aggressive price increases and an ill-fated acquisition spree hit the luxury group’s drinks business.

“The consequences of Moet Hennessy’s struggles became clear this month, when the division’s newly appointed executives told staff that about 1200 jobs would be cut as part of a cost-cutting drive, and warned that sales would not bounce back soon.”