Remy Cointreau’s spirit sales shrink

Sales at Remy Cointreau increased 16.3% in its last financial year, although the French drinks group’s liqueurs and spirits portfolio shrunk significantly.

Remy Cointreau’s spirits and liqueurs portfolio declined in the group’s last financial year

With double-digit growth in Asia and the US, and an improved performance in Europe, Remy Cointreau saw sales soar to €1.19bn in the year to 31 March 2013.

The achievement was led by a “remarkable performance” from leading Cognac brand Remy Martin, which through a combination of price increases and brand innovations in Asia and the US – where consumer demand for premium Cognac is strong –  improved sales by 21.5% to €719.8m.

However sales from the group’s liqueurs and spirits division, which includes the Cointreau and Metaxa brands and counts Western Europe as its core market, declined by 10.8% to €239.1m.

According to the group, Cointreau itself “performed well” in both the US and Western Europe, as did Metaxa, which despite the economic challenges provided by Greece achieved growth thanks to strong sales in Eastern Europe.

Remy Cointreau’s acquisition of the Bruichladdich single malt Scotch brand in September last year did not contribute greatly to the group’s end of year results.

“In a worldwide economic environment which lacks visibility, particularly in Europe, but nevertheless remains favourable for the premium spirits industry, Rémy Cointreau remains true to its long-term high value strategy,” the group concluded.

“The Group will continue to rely on its very high quality brands, its innovation policy, the dynamism of its distribution network and its strict cost control, and remains confident in its capacity to continue to generate profitable growth over the medium to long term.”

The announcement of the 2012/13 financial results follows the announcement yesterday that Remy Cointreau has sold the Larsen Cognac business it acquired in November 2012 to Nordic spirits group Altia for an undisclosed sum.