French luxury conglomerate LVMH has announced a massive 10-year sponsorship deal with motor racing organisation Formula 1. The global partnership, which kicks off in 2025, will involve several of LVMH’s key maisons, including Louis Vuitton, Moët Hennessy and current Red Bull Racing partner TAG Heuer
The announcement effectively marks the end of an era for current Formula 1 partner and LVMH rival Rolex. The Swiss watchmaker has served as the global partner and official timepiece of the Formula 1 World Championship since 2013, however, rumours that LVMH were circling have been rife for months. On Wednesday, Stefano Domenicali, president and CEO of Formula 1, confirmed the speculation.
“Our sport is founded on the relentless pursuit of excellence, a value that also lies at the heart of LVMH, so I am delighted to announce this historic partnership will begin in 2025,” Domenicali said in a statement. “As Formula 1 continues its global growth, attracting new and more diverse audiences, the strength and breadth of LVMH makes it the perfect partner for us to work with as we look to continually enhance the experience of our fans and the heritage of our incredible sport.”
What the F1 Partnership Means for LVMH
With LVMH operating a string of watch brands and alcohol producers, the new Formula 1 deal could prove to be a major business boost. Key maison, TAG Heuer, is perhaps best positioned to benefit from the partnership, having already established strong ties to the sport through its sponsorship of Oracle Red Bull Racing and historic connection to the Monaco race.
While it is unlikely that LVMH’s other watch maisons will enter the space, brands like Hublot or Zenith may have some wiggle room to enter the motor racing arena. More probably, however, is the integration of LVMH-branded alcohol into the sporting hospitality activation. With iconic champagne labels such as Dom Pérignon, Krug and Moët & Chandon in its portfolio, LVMH will no doubt have its eyes on the podium.
Italian sparkling wine brand Ferreri Trento is currently the official wine partner of Formula 1, however, the contract is set to expire after the 2024 season. Come 2025, it’s increasingly likely that Grand Prix-winning drivers will be showering themselves with Moët & Chandon.
LMVH and Formula 1
For fans of Formula 1, the upcoming season is shaping up to be one of the most significant in recent memory. In addition to marking the 75th anniversary of the iconic motor racing series, the 2025 season will introduce a number of key changes to driver lineups and team structures, following the successful integration of new races over the past two seasons.
According to Greg Maffei, president and CEO of Formula 1 owner Liberty Media, the new deal was inspired by the work of LVMH and its teams at the 2023 Las Vegas Grand Prix. The Liberty chief explained that the partnership will see LVMH extend its work on hospitality, bespoke activations, limited editions, and “outstanding content”.
“LVMH and Formula 1 are two global brands that consistently push the boundaries of creativity and innovation, values core to Liberty Media,” Maffei said. “We were thrilled to work with one of the LVMH maisons during the Las Vegas Grand Prix last year, and to now expand our relationship with the group as they become a global partner. The opportunity to scale our commercial arrangements is emblematic of the vision we have for Formula 1 as the business continues to grow its platform. We look forward to working with Bernard and Frédéric Arnault in the years to come.”
Change in Consumer Behaviour
The LVMH and Formula 1 partnership comes at a pivotal time for both organisations. The competition has never been more open, and the sport has enjoyed an enormous resurgence in popularity off the back of the global Netflix phenomenon, Drive to Survive. The series is largely credited for introducing Formula 1 to a new, more youthful audience, with reports indicating the average age of the sport’s TV viewers has dropped from 44 to 32 since Drive to Survive first aired.
That trend perfectly mirrors the luxury goods market, with a 2024 report by Bain & Company finding that Gen Z consumers, or those born between 1997 and 2012, are likely to account for nearly a third of luxury purchases by 2030. Similarly, millennials, born from 1981 to 1996, will make over half of luxury purchases. Speaking on the historic deal, Bernard Arnault, chairman and CEO of LVMH Group, outlined the synergy between the two organisations as a key driver for future success.
“The people, the quest for excellence and the passion for innovation are at the heart of the activity of our Maisons and Formula 1,” Arnault said in a press statement. “In motorsport, as in fashion, watchmaking or wines and spirits, every detail counts on the path to success. Both in our workshops and on circuits around the world, it is this incessant search to break boundaries that inspires our vision, and this is the meaning that we want to bring to this great and unique partnership between Formula 1 and our Group.”
The terms of the LVMH and Formula 1 deal have not yet been disclosed, however, LVMH has confirmed that further details will be revealed in 2025.