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CEO STORY with LVMH
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00:00Je suis ici pour notre final CEO story.
00:04Je suis ici avec Laurent Boileau, qui est le président et le CEO de Maison Hennessy.
00:12Si vous ne connaissez pas, Maison Hennessy est le plus grand produit et exporter de cognac dans le monde.
00:19Bonjour Laurent.
00:20Merci beaucoup pour être avec nous.
00:22Durant les 20 minutes prochaines, nous allons aborder la stratégie et la stratégie pour l'avenir.
00:31Je voudrais commencer par expliquer à quel point un produit de cognac comme vous,
00:40est impacté par innovation et nouvelles technologies.
00:45First of all, je veux dire que je ne souhaite pas la technologie ou la W3 de transformer notre company.
00:52Ce que je souhaite, c'est que la technologie va nous aider à atteindre nos objectifs.
00:58En un moment, il devrait être un meilleur supporteur.
01:04Je vous donne un exemple.
01:07Quand on parle de cognac et viticulture, nous sommes confrontés un nombre de challenges.
01:12One of them is how we can combine, one, high productivity.
01:19Second is to preserve our soil in a sustainable way.
01:22And three, deliver excellence in quality.
01:26And I must say that we don't have so many KPIs now, criteria to measure for improvement.
01:33And recently, very recently, two weeks ago, I met a company called CropX.
01:41CropX, what they do, they bring data.
01:43So what data for us, they put sensors in the soils, so we can have information about the soils on
01:50top of the soils,
01:51under the soils, the one yard, and then they combine with other information,
01:54such as very specific weather forecast.
01:58So then AI is putting it at work, and then we receive information to do the best possible decision in
02:09terms of cultivation.
02:11So I was just hearing this word, which is tech for good.
02:15I think in that aspect, this is a tech for good application, helping us to achieve our goal.
02:22Absolutely.
02:22And since you've already broached the topic of tech, I'd like to throw some words your way.
02:28Words that have become buzzwords today.
02:30Words like metaverse, Web3.
02:33Does this ring a bell for you?
02:35Do you use it in your business?
02:36Well, just to be cautious to start with, I think it's still early, it's still very in essence.
02:42So like many, we had a deep dive into the metaverse, Web3, NFTs, blockchain, because it's about learning, right?
02:52Understanding, and I believe we can shape also the space, as we say now.
02:57Now, after months of experimentation, we have some knowledge, and we know what we don't want in that space.
03:08What we are not interested in is speculations by all means.
03:12Obviously not cryptocurrency, but something else about NFTs.
03:16There's no way we're going to drop millions of NFTs out there just to make money.
03:20I don't want, in fact, you know, a branded NFT, Hennessy, in OpenSea with a very cheap tag price on
03:28it.
03:28It's absolutely contrary to our image.
03:31So what we are interested in?
03:33Well, obviously blockchain.
03:36Blockchain because of trustability, privacy, ownership, authenticity.
03:43That's one.
03:44We are also into NFT, but in a different way.
03:48NFT for me should be an access pass from digital to the real world.
03:55That's the way we're going to activate NFTs, and eventually a very simple observation.
04:01Some of our consumers, they are in the space.
04:04So we have to be in the space just to connect with them where they are.
04:08So you see, we are still navigating our roadmap as we speak.
04:12What does Web3 change for your organization?
04:17I'm thinking about the employees with this question.
04:21Well, again, let's see Web3 as a tool, right?
04:25So if that tool can also enhance our collective intelligence in a more collaborative or creative way, fine.
04:34We go for it.
04:35We'll experiment.
04:36So why not being in the metaverse for the employees?
04:38Why not experimentation?
04:41Having said so, as we are pushing digital a lot, what we'll do in the same way, we'll push even
04:47more human connections.
04:49Human connections.
04:51And I'm happy to say that we aim not just being the best place to work, as they say,
04:58but we're going to do something which is the best human place to work.
05:03And we are very dedicated to that.
05:05Making business more human, I see.
05:08When we speak about the post-pandemic word, we also speak about social responsibility.
05:16And I was wondering how innovation in your company and in your industry is actively enabling positive change on these
05:24issues.
05:26Well, we need more than the few minutes we have.
05:28But I wish to speak about something I'm deeply passionate about.
05:34It's one word.
05:36Forests.
05:37Forests.
05:37I see people, you know, my passion about forest.
05:39But the way we look at forest, first of all, we need forest for our barrels, for the oaks, for
05:45oak trees.
05:46We are putting now agroforesteries into the one yard to develop biodiversity.
05:50And there is something else that we want to be part of a huge coalition in the world to do
05:59our share, to fight against the consequences of climate change.
06:03Right.
06:03And we've done already a commitment to say we are going to regenerate 50,000 hectares of forest on the
06:10planet.
06:10And it's not a pledge.
06:12No, we are walking our way.
06:14But there is something else.
06:16Forests, they are commonly known for the fact that they can capture carbon, right?
06:22But there are many other merits for the forest.
06:25And one of them, they play a hugely important role for the water cycle on the planet.
06:31Right.
06:32In fact, forests, they act like aqueducts, bringing the water in the very, very, very important places.
06:41So let me, you know, elaborate, you know, very quickly.
06:44If you think of what the water cycle is, it goes with evaporation, condensation, and rain, right?
06:51So, ocean, evaporation, a cloud is forming, then the wind is bringing the cloud somewhere, and then when the drops
07:01are very heavy, by gravity, they fall in the rain.
07:05But something very interesting, in fact, is that forests, they trigger rain.
07:10So in those flying rivers, imagine that when the flying rivers is meeting a forest underneath, then it's raining.
07:19And after the rain, 30% of the rain is going into the soil, 70% is evaporating.
07:25So there is another cloud, and it's going a way further.
07:29So I'm now looking at the audience, and I'm addressing something to you guys.
07:39If one of you, and I will walk around also in the Viva Tech, if one of you can help
07:45us to map those flying rivers on the globe,
07:48they can help us to map the aerial waterways, and when they have been cut because underneath we just destroyed
07:56the forest, we want to meet with you.
07:58Because what we're going to do from now on is not only to reforest the planet, but we're going to
08:03reforest exactly where we can bridge again those aquedicts.
08:08To be certain, it's not only about carbon storage, but it's also reactivating the rivers, then irrigating the soil.
08:17So that's a big story.
08:18So if you feel compelled by this call to action, please do reach out.
08:25Just to conclude this first segment, can you share with us if there's one innovation in tech that you were
08:31particularly impressed with recently?
08:34Very recently, in fact.
08:37We are part of LVMH, and I think all LVMH companies, they have the missions to, one, preserve, second, enrich,
08:46and third, transmit.
08:48A patrimony that we received.
08:50And part of the patrimony is the know-how, the intelligence hand, for instance.
08:56And it would be a tragedy, a total tragedy, if those expertise were vanishing because there is no transmission.
09:05So certainly, the best way to transmit the know-how is from one person to the other, from one craftsman
09:11to the other craftsman.
09:13But what if technology could help?
09:16And I was exposed recently to an organization and a program, a research program, called RoboCraft.
09:29RoboCraft, what they do, they're able to scan the perfect gesture by using sensors.
09:36You imagine, like, a suit, you have sensors, and you do your work, like, you know, our barrel makers, for
09:42instance, they have specific gestures, and then we capture the perfect gesture.
09:47So what if, on top of this man-to-man or woman-to-woman transmission, we could add also technology?
09:54I think it's fascinating.
09:56I think it's really fascinating.
09:57It really is.
09:58Thank you so much.
09:59Moving on to our second segment in this interview.
10:02It's called On My Watch.
10:10And in this segment, we ask our CEOs to address a topic that they are passionate about, that they choose.
10:18And you, Laurent, wanted to discuss the relationship between luxury and Web3.
10:22Maybe perhaps start by giving us the words that come to mind to bridge the gap between these two notions.
10:30Well, exactly.
10:30So what I've done, I brought also my homework.
10:33So don't worry, there's only four charts.
10:36But I think, you know, I need to use them.
10:38The first one is, probably it's not new to all of you, but I think it's fine to say, what
10:44is the similarity between this space, the Web3 space, and the luxury space?
10:50And you see those words, they're really, you know, part of a blockchain, NFTs, and also communities.
10:58So you see, scarcity for sure, creativity, and community and even culture.
11:03So I think, you know, we have something in common, those two spaces, right?
11:07So that's the starting point.
11:08The second one is, I want to bring the church in the middle of the village, as we say.
11:14Right?
11:14It's not just, you know, for the sake of Web3.
11:17In everything we do, it's always about, you have a product.
11:22You need to sell the product to your customers that you need to understand what their insights are.
11:28You need to connect with them and to engage with them.
11:30And then, probably, if you do it right, you can think about one transaction and then a second transaction.
11:37So, I brought to you this.
11:41So, I'm going to explain.
11:42It's not very difficult.
11:44Back eight years ago, I was traveling in the west coast of the U.S.
11:50You know, those Web2 traveling.
11:55And I brought a chart from a person called Gopi Kalayil.
12:00You know, Gopi, for those not knowing Gopi, Gopi is the evangelist director of Google.
12:07And he had a simple approach to say, again, consumer, understanding, connecting, engaging.
12:13What I've done, and I'm sorry, Gopi, I've tried to put the consequences of the Web3 on his thoughts.
12:20First of all, you know, the five medaillons here, there's something new with Web3.
12:30Before that, before Web3, we were addressing one consumer after one consumer.
12:35What is fascinating about Web3, because of the community environment, we can speak not only to individuals, but now to
12:42communities.
12:43I think it's great because they have something in common, a passion.
12:47And we can maybe also organically get into their passion.
12:51So tomorrow, first of all, here, they will be not only direct to consumer, but for us, it will be
12:56direct to communities.
12:58And they will be also direct to avatars.
13:01So then, in understanding, insights are changing.
13:06I think it's fascinating coming from the metaverse gaming that people want multiple identities.
13:12So what do you do with it?
13:14And that's about connection and engagement.
13:17Engagement for me also is very important.
13:19It's like in life, by the way, because if you look at the different chapters, entertainment, education, utility, and collaborations,
13:29that's the way we are interacting, you know, to make friends, in a way.
13:34The good thing about Web3 is boosting those four elements.
13:40Entertainment.
13:41We can do much, much stronger entertainments thanks to Web3, you know, a metaverse kind of liaison.
13:49Educations.
13:50We know our consumers are savvy for education.
13:53So Web3 will have to do that.
13:54Utility.
13:55By the way, NFT.
13:56We switch at utility as well.
13:58And participation, collaboration.
14:00So we're willing to push participation with, in fact, the communities.
14:04And that's my second point.
14:09Now, I'm daring to share our strategy.
14:13The thing, you know, that chart probably will be different, you know, in some months from now.
14:17So there's nothing confidential.
14:20But really, you want to understand where we are aiming at for the moment.
14:23You know, I'm saying navigating on the Web3, we have three elements.
14:28One is enhancing communities.
14:29I mentioned that.
14:31So really working now even with DAOs, you know, what DAOs are standing for.
14:36And also, we have a very, very important partnership with NBA.
14:42NBA is a million fans on the planet.
14:44And NBA is more than a community.
14:47You know, a community works with identities, sharing one passion points, making the communities.
14:53But then, if the community is developing in the long run, you're getting to the culture.
14:59There is a culture of NBA.
15:01There is something which is extraordinary, which is what's happening outside the court.
15:06By the way, bravo les Warriors.
15:08And the Warriors just won the championship in the U.S.
15:12But back also to that, you know, how can we engage the people we are close to?
15:17The second one is to develop business and D2C distribution.
15:22On the AVMH stand, you'll meet also Blockbar.
15:26Blockbar, they are a marketplace.
15:28I think they're very interesting to us because they're opening a new channel.
15:32We've done an NFT based on a very rare product.
15:34And we're using the Blockbar marketplace to develop a new relationship with consumers.
15:41I'm skipping now to enhancing.
15:46This is also something very specific to luxury and wine and spirit industry when we have what we call our
15:55brown home.
15:56Our brown home is the occasion to share everything about what we do.
16:01From the soil, the wine yards, to experimenting with the cognac, for instance.
16:05So the idea we're having is to use VR, AR to add to a very livable experience something on top
16:14of it, which is mixing also VR and AR.
16:17And the merit of this one is, you know, I can sense that once we develop that VR experience, we
16:22could bring also some IDs and NFTs again as access pass, drop some rewards.
16:28And then we can also bring Cognac or bring Cognac everywhere in the world.
16:34And I think, you know, that's also an open way, fascinating.
16:38And I'm finishing with one thing, which is an announcement.
16:44The guy you see on the top right hand corner is Trevor McFrederys.
16:49So probably people know about him.
16:51It was the guy also invented Lily Michaela, the first really digital influencer.
16:57Right. Rapidly, if possible. I'm sorry. I'm the timekeeper.
17:00Okay. So I'm just finishing to say that he's also part of FWB, Friends with Benefits, which is a DAO.
17:07And we met, and I met, we met with that DAO.
17:11And we are going to be the first collaboration between Hennessy and a DAO.
17:16And it's going to be also develop and announce further in the next month.
17:20And if you want to continue the conversation, please head to the Maison Hennessy stand that is here, present at
17:27Vivatec.
17:28Thank you so much.
17:29Laurent Boisleau, everyone.
17:32Thank you for your presence.
17:35And that's it for our CEO stories.
17:38We hope that you enjoyed and were informed.
17:41And we will continue with our conversations all through the afternoon.
17:46Thank you so much.
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