Cognac holds back Rémy Cointreau

18th July, 2014 by Gabriel Stone

Rémy Cointreau has expressed confidence in its ability to return to growth this year, despite reporting a 5.7% organic decline for its first quarter.

Remy-MartinOnce again, it was the French group’s flagship Rémy Martin Cognac brand that led this decline, as sales shrunk by 15.3%.

This was attributed to three reasons: an ongoing move to destock in the sluggish Asian market, the “still challenging” environment in Western Europe especially, and “a high comparative in the US”, which the company claimed “overshadowed the positive momentum of our superior qualities in this market.”

Despite the challenges faced by Rémy Martin, the rest of the group’s liqueurs and spirits portfolio put in a strong combined performance with 11% growth.

A particularly strong performance came from Islay whisky brand Bruichladdich, whose sales doubled for the first quarter. Having bought the distillery two years ago and doubled its production last year, the group confirmed: “The strategy implemented for the past two years at Bruichladdich is beginning to bear fruit.”

There was similarly positive news from Rémy’s distribution partner brands, which saw 9.1% growth. Although a contract in the US with Edrington came to an end in April 2014, the group retains distribution deals with Champagne houses Charles Heidsieck and Piper-Heidsieck, as well as certain spirits owned by William Grant and Russian Standard.

Highlighting “the sequential improvement” on its performance in the previous quarter, the company stated: “At the end of this first quarter, Rémy Cointreau confirms its objective of achieving organic growth in both sales and current operating profit in 2014/15.”

The group’s results for 2013/14, which it announced last month, saw net profits slump by 46.9%, accompanied by a sale decline of 13.5%.

 

 

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Your email address will not be published.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

New Business Development Manager Nordic

Concha Y Toro
Stockholm, Sweden

Experienced Administrator

The Drinks Business
Central London, UK

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

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