Historic Deal: Formula 1 and LVMH Enter a Ten-Year Partnership

On 2 October, what had long been rumoured became a reality: LVMH and Formula 1 have entered into a partnership. As Formula 1 prepares for its 75th anniversary in 2025, this global partnership not only marks the end of one era but also heralds a new beginning. In this billion-euro deal, which binds LVMH to the racing series for 10 years, the luxury conglomerate gains the opportunity to showcase its portfolio of brands, comprising 75 companies in total, and to increase its visibility. Moreover, this deal signifies that LVMH will replace Rolex as the official timekeeper, thus bringing Rolex’s 12-year partnership with Formula 1 to an end.

As part of the agreement, three iconic brands from the luxury group will be at the forefront of attention. From the Wines & Spirits division, which accounts for nearly 26 brands and contributed approximately 8 percent of the company’s total revenue in 2023, Moët & Chandon could once again serve as the celebratory drink for the winner’s podium shower. This tradition was started by Moët & Chandon as the first company to officially supply champagne to Formula 1. The deal began in 1966 and lasted an impressive 33 years. From LVMH’s largest business division, Fashion & Leather Goods, which generated approximately €42.17 billion or 49 percent of total sales in 2023, Louis Vuitton is poised to take the spotlight.

The Official Timekeeper: The Role of TAG Heuer

With LVMH as the official timekeeping partner of Formula 1, TAG Heuer is set to take on what may become the most visible role among the three spotlighted brands. TAG Heuer was the first official timekeeper of Formula 1, holding this position until the late 1970s. Although the brand was already represented in Formula 1 as a partner of Red Bull and the Monaco Grand Prix, it will now be able to significantly increase its visibility and presence as the renewed official timekeeper of the entire racing series.

TAG Heuer was the first official timekeeper of Formula 1 and was responsible for timekeeping until the end of the 1970s.

This development comes at a time when the brand is experiencing its third leadership change in just one year. Antoine Pin, head of Bulgari’s watch division, replaced Julien Tornare in September, who now faces the challenge of making Hublot more mainstream. Tornare, who revitalised Zenith with his storytelling acumen, succeeded the second-youngest Arnault heir, Frédéric Arnault, as TAG Heuer’s CEO.

Hublot CEO, Julien Tornare

In an interview during the LVMH Watch Week 2024, former TAG Heuer CEO Julien Tornare revealed that LVMH is currently repositioning TAG Heuer. This repositioning will focus on higher levels of refinement and more ergonomic designs. He also emphasised that the company plans to develop new movements. Almost in contrast, TAG Heuer aims to strengthen its Connected Watches, first introduced in 2015, as a core pillar of the brand. Furthermore, the brand, which has traditionally been more popular in the United States, seeks to reignite its desirability in China. By engaging brand ambassadors like Ryan Gosling, collaborating with other brands, and participating in various events – including Formula 1 – TAG Heuer intends to increase its visibility.

This underscores LVMH’s ambition to become a larger player in the watchmaking sector, where it is currently the fourth-largest entity, after Rolex, Richemont, and the Swatch Group. To achieve this, the family-owned company is focusing on a full-fledged watchmaking offensive. Bernard Arnault has placed two of his five children in LVMH’s watch division: Frédéric Arnault, who has held a newly created role as head of the LVMH watch division – comprising TAG Heuer, Hublot, and Zenith – since January 2024, and the youngest son, Jean Arnault, who leads Louis Vuitton Watches. The latter is the driving force behind the Louis Vuitton Watch Prize for Independent Creatives and the revitalisation of the Daniel Roth and Gerald Genta brands, with which the youngest Arnault aims to make his mark on watchmaking history.

Formula 1 and LVMH: A Historic Deal

Having already invested in the Olympic Games, the FIFA World Cup, and the American NFL, the partnership with Formula 1 – with a rumoured investment volume of up to one billion euros – is the next logical step in expanding LVMH’s presence and boosting the visibility of its brands. Bernard Arnault, CEO of the LVMH Group, expressed it this way: “People, the pursuit of excellence, and a passion for innovation are at the heart of the activities of our maisons and Formula 1. In motorsport, as in fashion, watchmaking, or wines and spirits, every detail matters on the road to success.”

lvmh.com