China slump blunts Rémy results
21st January, 2014 by Rupert Millar
Rémy Cointreau’s Cognac sales are still suffering dramatically thanks to the slow down in China.
Sales for the first nine months of the financial year totalled €845.7 million, an organic decline of 9.4% compared with the same period last year.
As previously reported by the drinks business, in the six moths to September last year Rémy suffered a 6.3% drop in sales because of the slowdown in China.
Rémy admitted in a statement: “The unfavourable situation for spirits in the Chinese market did not improve during the quarter. Since the start of the current financial year, the brand has recorded a cumulative organic decline of 18.3%. “The campaign to promote morality in China is expected to continue to adversely affect the consumption of ultra-premium products and no significant recovery can be expected due to the Chinese New Year.”
On the other hand, the US, Russia, Japan and Africa all continued to perform well.
The liqueur and spirits division performed rather better with organic sales growth of 6.3%, Cointreau in particular growing in the US, Americas and France, Metaxa enjoying a resurgence in Greece as well as Eastern Europe.
Mount Gay built on past success in the US, Caribbean and Australia. The growth of Scotch and Champagne in the US continued into Q3.
The exchange rate with the euro was unfavourable for most of the period and resulted in a 2.9% or €27.9m impact on sales.
Rémy concluded: “The Group will resolutely pursue its strategy of developing its brands across all regions. The value adding and long-term strategy will remain unchanged.”