Rémy reaps dividend of upmarket shift
Rémy Cointreau has posted a 16.3% sales increase in its year-end results, following on from the double digit growth it enjoyed last year.
Announcing consolidated sales to the end of March 2013 of €1,193.3 million, the group highlighted double digit growth from Asia and the US, with a further overall positive contribution from European markets, despite “a mixed economic environment” here.
Within the group’s portfolio, Rémy Martin Cognac saw an increase of 12.7%, its fourth year in a row of double digit growth. The brand’s main source of growth was Asia and the Americas, although Russia and Western Europe, especially the UK also responded well to its ongoing policy of shifting upmarket and “high quality innovations.”
Rémy Cointreau’s liqueurs and spirits division saw more modest overall growth of 3.9%, a figure boosted by the acquisition of Scotland’s Bruichladdich whisky brand in September 2012. The brand has since announced plans to double production this year.
Increased marketing investment in the US helped Cointreau to achieve growth of 7%, while the Metaxa, Passoa and St Rémy brands also increased sales in their main markets.
Among Rémy Cointreau’s “Partner Brands”, which it distributes on behalf of other drinks producers, Scotch whisky sales in the US provided the main source of growth.
However the group also highlighted the success of a “high value strategy” implemented by EPI-owned Piper Heidsieck last year, as well as the “positive welcome” to the 2012 relaunch of Charles Heidsieck.
Commenting on these results, Rémy Cointreau CEO Jean-Marie Laborde said: “This performance confirms the Group’s strategic orientation initiated over the last few years. Our results were driven by the move upmarket of the entire brand portfolio, innovations supported by targeted investment and the expertise of our worldwide distribution network.”