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Rémy CEO: ‘The worst is behind us in China’
Eric Vallat, CEO at Cognac house Rémy Martin, has declared “the worst is behind us in China” as his brand returns to positive depletions in the market.
Rémy Martin CEO Eric Vallat believes the “worst is behind us” for the Cognac market in China
Rémy Martin saw an emphatic return to growth in 2015, recording 15.15% volume gains, reversing 6% declines posted in 2014, according to Brand Champions data.
Vallat credits the Chinese and US markets, as well as emerging economies in Africa, as catalysts for the change in fortunes.
“I believe, in the general context let’s say, that the worst is behind us in China,” he told The Spirits Business.
“It’s going to be a long and slow recovery, but it’s now three years since the severe headwinds we had to face.”
The Cognac market was plunged into a depression following the introduction of anti-extravagance measures by the Chinese government in 2012.
Figures released by the BNIC showed the category as a whole plunged 13.3% by volume and 16.9% by value in the 12 months to July 2014.
“On our side, we believe that there are ways now to build probably a more steady business than in the past, at a slower pace by more steady,” Vallat continued.
“And we can see our depletions back to positive in volume and flat in value, which means clearly there is still a challenge at the high end, but the trend is back to growth.”
Rémy Martin has been named Supreme Brand Champion 2016. See the June edition of The Spirits Business for the full interview with Eric Vallat.