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.

CognacSales 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.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Job vacancies

Senior Customer Marketing Manager

Conviviality Group
London or Bristol, UK

Customer Marketing Manager- 12 month FTC

Conviviality Direct
London, UK

PR Account Executive

Clementine Communications Ltd
Fulham, UK

Marketing Manager

Berkmann Wine Cellars
London, N7, UK

Brand Manager

Berkmann Wine Cellars
London, N7, UK

Sales Account Manager

Jascots Wine Merchants
London, UK

Marylebone Sales Manager

Philglas & Swiggot
Marylebone, London, UK

Area Sales Manager

Bon Coeur Fine Wines
North England, UK

Procurement Assistant – Wine

Adnams PLC
Southwold, UK

Account Manager Central London

Speciality Drinks Ltd
London, UK

Brand Ambassador

Speciality Drinks Ltd
London, UK

National Business Development Manager

Speciality Drinks Ltd
London, UK

Marketing Assistant

Hatch Mansfield
Ascot, Berkshire, UK

Marketing Manager

Bancroft Wines
London, UK

The Global Sparkling Masters 2017

Deadline : 25th August 2017

The Global Malbec Masters 2017

Deadline : 25th August 2017

Global Chardonnay Masters 2017

Deadline : 1st September 2017

The Global Sauvignon Blanc Masters 2017

Deadline : 1st September 2017

Click to view more

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

The Global Organic Masters 2017

The drinks business is thrilled to announce the launch of The Global Organic Masters

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Click to view more