Asia Pacific boosts Rémy Cointreau FY salesBy Nicola Carruthers
French drinks group Rémy Cointreau posted full-year sales growth of 2.9% in 2017/18, driven by strong Cognac gains in Asia Pacific.
Total sales reached €1.13 billion (US$1.39bn), with Rémy Cointreau’s own brand portfolio contributing 9.2% organic growth.
Geographically, Asia Pacific posted “remarkable” growth, led by Greater China, Singapore, Japan and a new subsidiary in Malaysia. The Americas region delivered “solid” growth, led by the US and Canada.
In the Europe, Middle East & Africa region, the group benefited from “strong momentum” in Russia, Central Europe and the UK.
Rémy Martin posted a double-digit growth of +13.2%, delivering a “strong” performance across all geographical areas. The brand achieved “accelerated momentum” in Asia Pacific, in particular Greater China. Rémy Martin also performed well in the US, Russia and travel retail.
Sales for the Cognac house were boosted by the launch of a second limited-edition release of Carte Blanche à Baptiste Loiseau, pop-ups in the UK, Russia and China, and “communication investments” for its XO Cognac.
Meanwhile, Louis XII launched its limited-edition crystal magnum, called The Legacy, and unveiled the 100 Years campaign in partnership with singer Pharrell Williams.
The company’s Liqueurs & Spirits division posted an decline in organic growth of -1%. Excluding the Passoã JV deal with Lucas Bols in 2016, the division posted a 4% organic sales rise.
Cointreau liqueur had a “good year” in the US and was boosted by “rapid expansion” in new markets, notably Greater China and Russia.
Greek spirit Metaxa had a “solid year”, bolstered by its 12 Stars expression in new markets and travel retail while Mount Gay rum and St-Rémy witnessed “positive mix effects”.
The Progressive Hebridean Distillers portfolio was driven the Botanist gin, which performed well in the on-trade.
Sales of ‘partner brands’ dropped 10.4% following the end of Rémy Cointreau’s distribution deal with Champagne brands Piper-Heidsiek and Charles Heidsieck. Gains from Passoã partially offset the decline.
“With full-year sales in line with the group’s forecasts, Rémy Cointreau confirms its guidance of growth in current operating profit for the financial year 2017/18, assuming constant exchange rates and consolidation scope,” the company said in a statement.