Moet & Chandon 2011

Abstract

This case is about the strategic decision of Moët & Chandon, the world’s leading champagne producer, to invest in China. Through a joint-venture signed in May 2011 with Nongken, a Chinese wine producer, Moët & Chandon plans to extend its world sparkling wine production. As champagne production is limited Moët has indeed long been diversifying its activities with the production of Chandon sparkling wine, outside the protected area of Champagne. As the champagne business is reaching its production capacity, Moët & Chandon needs to find alternative ways to growth. One may question the choice of China as it is not a wine drinking country. Moreover Sparkling wine has not the same reputation as champagne, which could be an issue in a country eager for the best luxury products. This case tackles business strategic issues such as extending activities for long-term survival, choosing the appropriate new markets to enter, developing the core competence in a different environment.

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