Luxury retailer LVMH has dismissed suggestions that it may be considering selling Moet & Chandon and the rest of its drinks arm.

After LVMH upped its stake in Hermes International to 17.1 per cent, speculation was rife that the company's drinks portfolio would be sold to Diageo to fund a full takeover of Hermes.

However, LVMH chief executive and majority shareholder Bernard Arnault told the Drinks Business the company was under no pressure to make such a sale, although Diageo has long coveted the Moet & Chandon champagne label.

In addition, analysts appear to value LVMH's drinks arm at a considerable €11 billion (£9.6 billion).

LVMH recently revealed that its sales in the wines and spirits market jumped by 22 per cent in the first nine months of 2010.

Sales of champagne such as Moet & Chandon, Krug and Dom Perignon contributed to the group's revenue exceeding €14 billion (£12.3 billion) during this period.

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