Rémy Cointreau confirms Asia rebound

French drinks group Rémy Cointreau has bounced back from long-running challenges in Asia to report global net sales growth of 8.9% in 2015/16.

Sales of Rémy Martin Cognac has benefited from “improving trends” in Asia

The company generated sales of €1.05 billion between April 2015 and March 2016.

In organic terms, Rémy Cointreau’s sales growth was relatively flat +0.3%, impacted by “technical factors” arising from the implementation of a new strategy to “move upmarket”. This included line culls of lower end products, adaptation of distribution networks, and the termination of distribution deals with partner brands.

While the group has been impacted by China’s on-going austerity measures in recent years, its full-year organic sales in the region showed “strong growth” of +9.8%.

Success was also witnessed other markets in the Asia Pacific region, well as countries in the EMEA region, which as a whole was bolstered by the group’s expansion strategy in Africa.

Rémy Cointreau, maker of Rémy Martin Cognac and Bruichladdich Scotch whisky, reported “outstanding trends” in the Americas driven by “favourable market conditions in brown spirits” in the US. However, the country was hit by terminated distribution agreements for Piper Heidsieck and Charles Heidsieck Champagne.

‘Improving trends’ in Asia

Following “sustained performance” in the Americas and EMEA region, as well as “improving trends” in Asia in the second half of the year, Rémy Martin generated organic growth of +3.2%.

The brand benefited from its recently launched One Life / Live Them global marketing campaign fronted by actor Jeremy Renner, and “strong developments” of its 1738 Accord Royal expression in the US and Rémy Martin Club in Asia.

The “buoyant growth” of Rémy Cointreau’s Liqueurs & Spirits division in the second half of the year only partly offset macroeconomic factors affecting Greece and Russia in H1. As such, organic sales (calculated on constant exchange rates) were down 1.5%, but reported sales rose 4.1%.

Consumption of orange liqueur brand Cointreau improved in France, Germany and the UK as a result of communication campaigns around the Cointreau Fizz cocktail and the Cointreau Creative Crew.

Greek spirit Metaxa was hit by a consumption slowdown in Greece, Russia and travel retail, but “performed well” in the fourth quarter following the release of Metaxa Honey Shot. Mount Gay rum and Rémy’s Islay spirits – including Bruichladdich, Port Charlotte and The Botanist – also recorded healthy growth.

The group said since its annual net sales were “in line” with forecasts, it expects to deliver “positive growth” in operating profits for the 2015/16 financial year, however this figure has not yet been announced.