Rémy Cointreau launches three-year plan to revive growth
French spirits group Rémy Cointreau has unveiled a new strategy aimed at restoring profitability after a difficult period for its Cognac business. The three-year transformation programme focuses on improving margins, streamlining operations and strengthening premium brands.
Remy Cointreau is launching a three-year plan to boost recovery and restore profitability, especially in the Cognac division, which has been badly hit in recent years by tariffs in China and falling demand for the category in the US.
The intention, according to CEO Franck Marilly, is to rebuild profitable growth and reduce the group’s exposure to swings in the global economic cycle.
RC Forward transformation plan
The “transformation plan”, RC Forward, entails streamlining distribution, improving the pricing and product mix, cutting procurement and investment waste, and speeding decisions with a leaner structure.
In the announcement, Remy Cointreau gave no more than an outline of how these aims are to be achieved, other than to say that the first report on progress will be given with its annual results in two months.
Partner Content
Creation of a prestige division
Apart from a series of operational changes among senior personnel, the company is creating a “Prestige Division” which will encompass Louis XIII Cognac, Telmont and Maison Psyche.
Focus on long-term value creation
Marilly said: “RC Forward Plan aims to give us the means to generate our own value creation momentum and thus become less dependent on macroeconomic cycles.
“It also seeks to strengthen the entrepreneurial and conquering mindset of our teams, building on the group’s culture while instilling greater discipline, rigour and performance focus.
“Our ambition is clear: to sustainably improve profitability in order to generate additional resources to invest in growth.”
Related news
Rémy Cointreau returns to growth as recovery begins
Rémy Cointreau shares jump after Cognac sales beat forecasts
