Cognac boosts Rémy Cointreau Q1 sales

Rémy Cointreau has reported a “strong” start to its 2018/19 fiscal year with organic Q1 sales up 5.9%, boosted by Cognac and “remarkable growth” in China.

Sales for the luxury French drinks producer reached €241.5 million in the first quarter of its 2018/19 financial year, a 0.5% increase compared to 2017/18 in reported terms.

The House of Rémy Martin enjoyed an 11.1% organic rise in sales, with Greater China and travel retail demonstrating “remarkable growth”. Singapore, Australia and Japan also experienced “sustained growth” during Q1.

Rémy Cointreau attributed this growth to the opening of two new Louis XIII boutiques, one in Harrod’s, London, and another at Xian, China, as well as Rémy Martin’s limited edition XO Cannes 2018 travel retail exclusive.

It also hailed the partnership with American kinetic artist Matt W Moore, who designed a limited edition Rémy Martin VSOP and the ‘ARt’ app using augmented reality to combine symbols of Rémy Martin with Moore’s ‘vectorfunk’ abstract designs.

The group’s liqueurs and spirits sector – including Cointreau, Mount Gay, St-Rémy and Bruichladdich – grew 2.8% organically during the first quarter, bolstered by the House of Cointreau and Metaxa, as well as single malt whiskies and The Botanist Gin.

Rémy Cointreau’s ‘partner brands’ continued to decline (19.7% in organic terms) due to the termination of distribution contracts with third party brands, which was in line with the company’s strategy to gradually refocus on the ‘group brands’ – which grew 8.8%.

Looking ahead to the rest of the financial year, the group concluded: “On the heels of this positive start to the year, Rémy Cointreau confirms its guidance of growth in current operating profit over the financial year 2018/19, assuming constant exchange rates and consolidation scope.”