Bruichladdich sales double to boost Rémy results
French drinks group Rémy Cointreau has reported improved results for the first six months of its financial year as sales of Bruichladdich Scotch whisky doubled.
The Islay Scotch whisky, acquired by Rémy Cointreau in 2012, drove sales for the group’s Liqueurs and Spirits portfolio as it began to take full effect of the leverage of its global distribution network.
The performance from Bruichladdich, combined with double-digit growth from Metaxa, a “solid performance” from Cointreau and Mont Gay rum, drove a 44% increase in organic sales for the Liqueurs and Spirits portfolio during April to September 2014.
The results follow the announcement in early 2013 that Rémy Cointreau doubled the output capacity of Bruichladdich distillery to meet ambitious distribution targets set by the group.
While the improved performance was enough to offset some of the declines felt by the group’s Rémy Martin Cognac, Rémy Cointreau posted an overall organic decline for the period of 5.6%, with sales down to €471.8 million.
The group attributed Rémy Martin’s 13.4% sales decline in the six months to €276.8m on the destocking of the brand in China, as well as its withdrawal from the VS category in the US and economic issues in western Europe.
Despite the decline, the group underlined its faith in achieving its target of delivering positive organic growth in sales and operating profit by the year-end.