Rémy Cointreau sales show signs of recovery

Rémy Cointreau is finally showing signs of recovery and reported a return to growth in its 2014/15 fiscal year, bolstered by a strong fourth quarter that saw organic sales grow by 23.4%.

Demand for Rémy Martin Cognac in the US and over Chinese New Year boosted Rémy Cointreau sales in Q4

The French spirits and liqueurs producer reported sales in its fourth quarter rose to €224.2 million from €186m as it bounced back in Asia and witnessed strong Cognac sales in the US, Japan and Europe.

Full-year sales for 2014/15, however, fell by 6.4% to €965.1m, although this was higher than analysts’ forecasts of €952m.

Ignoring currency impacts, Rémy Cointreau’s organic full-year sales returned to growth rising by 0.6% and meeting forecasters’ expectations.

Organic sales of the firm’s Rémy Martin Cognac fell 1.9% – lower than the forecasted declines of 2.2% – as the brand “benefited from a sales rebound over the second half of the year in all major regions and, in particular, in Greater China”.

“With strong growth in the brand’s upscale products, the United States has now become the first market in the world for Rémy Martin,” Rémy Cointreau said in a statement. “Africa, Japan and Central Europe saw two-digit growth over the period.”

Work in the US with top bartenders resulted in “significant gains in market share in the on-trade” for Cointreau liqueur during the second half of the year, while Metaxa experienced double-digit growth in German and Central Europe, although this was offset by a slowdown in consumption in Eastern Europe and Russian travel retail purchases.

Rum brand Mount Gay reported “remarkable growth” due to repositioning itself at the higher end of the market, and Bruichladdich saw sales almost double as a result of its single malt whiskies and The Botanist gin.

Looking ahead to the next fiscal year, Rémy Cointreau said: “Given annual net sales in line with expectations, Rémy Cointreau confirms its objective for organic growth in current operating profit over the 2014-15 period.”