• by Sarah Mahoney  @mahoney_sarah, July 25, 2023

LVMH announced the Olympics partnership with an ad on social media

LVMH, the world's biggest luxury company, has signed a deal to become a premium partner of the Paris 2023 Olympic and Paralympic Games. The company joins premium sponsors like Orange, the French telecom company, and Carrefour, the supermarket chain. Global sponsors include Airbnb, Alibaba, Coca-Cola, Procter & Gamble and Toyota.

The company didn't disclose the size of the deal, but Reuters reports it is in the range of $166 million.

Many of LVMH brands, or “maisons,” will be included in the deal. Chaumet, its storied Parisian jeweler, is designing the medals. Sephora, its beauty retailer, is sponsoring the Olympic Torch Relay, which some have speculated may be the most-watched Olympic event ever.

There will be activations for the public all along the relay route. Wines and champagnes from its Moët Hennessy division will be served at hospitality events. And Berluti, Dior, and Louis Vuitton will outfit the French athletes. Cumulatively, LVMH says the effort will make the company the "Artisan of All Victories."

LVMH is no stranger to the sports world, making sports trophies and the trunks they travel in. But it's not a name normally seen sandwiched between P&G and Toyota -- or is it?

Yes and no, says Milton Pedraza, founder and chief executive of the Luxury Institute. "LVMH brands like Hennessy and Sephora are more mainstream than luxury," he says. "These are mass brands. Everyone drinks wine and spirits. Everyone buys beauty products.”

And for its more unique brands, like Dior, LVMH will be very selective and surgical about each brand's participation.

But ultimately,  there is no way LVMH could sit out the games, he tells Marketing Daily. "France is the country that everyone looks to. It does luxury the best of any other country. So LVMH has to do it, and they want to do it. They want to support their country, the flag and their industry."

The deal also calls for LVMH to sponsor Léon Marchand, France's 21-year-old swimming phenom, who recently shattered Michael Phelps's record in the 400-meter medley. A charity program will fund sports access for 1,000 at-risk children.

"This unprecedented partnership with the Paris 2024 Olympic and Paralympic Games will contribute to heightening the appeal of France around the world. It was only natural that LVMH and its Maisons be part of this exceptional international event," saiod Bernard Arnault, chairman and chief executive officer, in the release. "Sport is a tremendous source of inspiration for our Maisons."

LVMH also reported financial results for the first half, reporting a 15% increase in revenue. In the U.S., however, sales fell 1%.