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Your email address will not be published.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

Sales Executive (London – Craft Spirits)

Bimber Distillery
London, UK

2 x Buying Assistants

Berry Bros. & Rudd
Battersea and Basingstoke, UK

Temporary Christmas Sales Support - Wines & Spirits

Harrods
Knighsbridge, London, UK

Head of Wholesale

Hispamerchants Ltd
London, UK

Sales Manager

Hispamerchants Ltd
London, UK

National Sales Manager

Maverick Drinks
Field based, UK

Regional Sales Executive

EWGA
Gloucestershire, UK

Senior Content Writer

Rude Wines
Ledbury, UK

The World Bulk Wine Exhibition

Amsterdam,Netherlands
20th Nov 2017

The Drinks Business Green Awards 2017

London,United Kingdom
20th Nov 2017

The Global Spirits Masters Lunch

London,United Kingdom
1st Dec 2017
Click to view more

Green Awards 2017

Deadline : 25th October 2017

The Global Riesling Masters 2017

Deadline : 30th October 2017

Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

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.

Click to view more