Asia and US drive double-digit growth for Remy Cointreau

Remy Cointreau has reported double-digit sales growth for the year as its portfolio of spirits and liqueurs continue to strive in the US and Asia.

Remy Martin partly attributes its success to premium and innovated releases like Remy Martin Black Pearl

The French drinks group recorded a 16.3% increase in sales to €1.19 billion for the year ending 31 March 2013, off the back of double-digit growth the previous year.

Sales of its Remy Martin Cognac brand grew by 21.5% – its fourth consecutive year of double-digit growth, attributed to premiumisation of the portfolio and a renewed pricing policy combined with a modest increase in volume.

Sales of Remy Martin were driven by Asia and the Americas, while Russia and the UK drove sales in the Europe/ Africa region.

Meanwhile the acquisition of Scotch distillery Bruichladdich in July 2012 helped drive sales growth for the group’s liqueurs and spirits portfolio by 10.8%.

Namesake brand Cointreau had a strong year with an overall 7% growth down to increased marketing investment and expansion in the US, alongside “good results” from Western Europe, particularly Benelux and the UK.

Despite on-going economic turbulence in Greece, Metaxa liqueur grew in its core markets with high potential noted for Eastern Europe.

Sales of Remy Cointreau’s partner brands, which are distributed on behalf of partner companies, grew by 7.6%.

Jean-Marie Laborde, CEO of Remy Cointreau, 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.

“During the financial year we have, once again, consolidated our positioning and reaffirmed our high value and long-term strategy.”

Remy Cointreau concluded its financial statement by stating it would continue to “rely on its very high quality brands, the dynamism of its distribution network and its strict cost control”.

Toward the end of 2012 the group embarked on an acquisition spree, snapping up the formerly independent Bruichladdich distillery and AOC Cognac producer Cognac Larsen, whose inventories of eaux-de-vie will be distributed via Remy’s existing routes to market in the US and Asia as it positions itself for substantial category growth in those regions.

Since acquiring Bruichladdich for £58m, Remy Cointreau has set the Islay distillery ambitious production targets as it works to make the brand a household name. In February 2013 it was confirmed that production at the distillery would be moving to a 24-hour operation for five days a week in order to double its output from 750,000 litres a year to 1.5m litres.