Who Owns Krug?

Krug operates under LVMH's sustainability framework while implementing its own environmental initiatives in champagne production.

Organic Vineyard Certification: Krug's estate vineyards have been certified organic as of 2024, following a process that began with the cessation of herbicide use in 2009. The house is also working with its grape suppliers to help them attain organic certification, with approximately 95% of supplier vineyards engaged in the conversion process. However, Krug has noted that it will use treatments to save crops if disease threatens, which is why it has not pursued formal organic certification for all operations.

Sustainable Viticulture in Champagne (VDC): Krug participates in the broader Champagne region's Sustainable Viticulture in Champagne (VDC) initiative, which addresses input management for health and environmental protection, promotes terroir and biodiversity, and practices responsible management of water and waste. As of 2024, more than 60% of vineyards in the Champagne appellation have secured environmental certification, with VDC certification in more than 40% of cases.

Carbon Footprint Reduction: Krug has implemented several initiatives to reduce its environmental impact, including the use of electric tractors for mechanical weeding to avoid adding CO2, a 30% reduction in water usage, and reduced electricity consumption. The house maintains 850 stainless steel tanks for reserve wines, compared to 60 tanks 20 years ago, using state-of-the-art reductive environments to preserve freshness.

Climate Change Adaptation: Krug has adapted its harvesting practices in response to warming temperatures. Rather than relying on chemical analysis, the house tastes berries to determine harvest dates, a practice that has helped gain freshness (0.3 degrees in acidity) while limiting alcohol increase (0.2 degrees). The 2025 vintage in Champagne was described as "easy" with favorable conditions, in contrast to the difficult 2024 vintage that faced springtime frost and widespread mildew.

LVMH LIFE Program: As part of LVMH's Wines and Spirits segment, Krug benefits from the conglomerate's LIFE (LVMH Initiatives For the Environment) program, which includes renewable energy adoption, sustainable packaging development, and carbon neutrality targets. Krug was the first LVMH Maison to earn the Positive Luxury title.

Krug has received consistent critical acclaim from the world's leading wine publications. Key recognitions include:

• In 2012, Wine Spectator named Krug the year's Best Rated Champagne House, with six Krug champagnes selected for the annual Recommended Champagnes list
• Krug champagnes consistently receive ratings of 95+/100 from Wine Spectator
• The Grande Cuvee regularly receives scores of 96-98 points from major publications including Robert Parker's Wine Advocate, Decanter, and Jancis Robinson
• Krug regularly wins gold medals and best-in-class awards at the International Wine Challenge, Decanter World Wine Awards, and Champagne and Sparkling Wine World Championships
• Krug was the first LVMH Maison to earn the Positive Luxury title for its environmental practices
• In 2004, Krug was awarded ISO certification in environmental practices, energy management, and food safety management

Krug has not been the subject of any major product recalls. The brand faces broader challenges that affect its market position:

Champagne Market Decline: Global champagne shipments fell to approximately 271 million bottles in 2024, nearly 55 million bottles below the modern high of 325.5 million in 2022. LVMH's Wines and Spirits segment reported a 5% organic revenue decline in 2025, reflecting this broader downturn. Champagne producers have called for lower yield limits to manage supply.

Internal Competition with Dom Perignon: As part of LVMH's champagne portfolio, Krug faces internal competition from Dom Perignon, another ultra-premium champagne brand within the same parent company. Both brands compete for similar high-end consumers and prestigious placements.

Climate Change Risks: Like all champagne producers, Krug faces challenges from climate change affecting grape growing conditions. The 2024 vintage was particularly difficult, hit by springtime frost and widespread mildew. Krug has adapted by changing harvest timing practices and investing in vineyard management techniques.

Counterfeiting: As a prestigious luxury brand with high market value, Krug faces ongoing challenges related to counterfeiting and brand protection, requiring investment in authentication systems and legal enforcement.

Brexit and Trade Disputes: As a French champagne producer with global distribution, Krug must navigate complex international regulations, trade policies, and tax regimes. Brexit and trade disputes have created compliance and business planning challenges for champagne exports.