Cognac holds back Rémy Cointreau

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Your email address will not be published.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

Sales Executive

Three Wine Men
Home-based but must be available to travel throughout the UK with frequent trips to London, GB

Senior Sales Operations Executive

Enotria&Coe
Park Royal, London, GB

Sales Administrator

Les Caves de Pyrène
Guildford, UK

On Trade & Corporate Accounts Manager

The Champagne Company
Birmingham, UK

Customer Service Assistant

The Champagne Company
Birmingham, UK

Key Account Manager - Distilling Sector - Scotland

Boortmalt
Scotland - call for exact details, UK

UK Brand Ambassador - Ableforth’s

ATOM Brands
Field-based, UK

Wine Sales Consultant

VSF GROUP
Valbonne, South of France, FR

UK Brand Ambassador

Mirabeau en Provence
London, UK

Sales Ambassador – London

Identity Drinks Brands
London, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

The Global Pinot Noir Masters 2018

Deadline : 26th January 2018

Cabernet Sauvignon Masters 2018

Deadline : 23rd February 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

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

Click to view more