Rémy Cointreau toasts triple-digit Q1 sales growthBy Kate Malczewski
French drinks group Rémy Cointreau achieved an organic sales increase of 105% in the first quarter of its fiscal year, aided by the strong performance of its Cognac portfolio.
The business’ sales totalled €293.1 million (US$345.6m) in the first quarter of 2021/22, an increase of 36.5% at constant currency compared with first quarter pre-pandemic sales in 2019/20.
The Rémy Martin Cognac owner managed to maintain its momentum from 2020/21, when its full-year sales increased by 1.8% due to a strong performance in the second half.
Cognac played a particularly key role in this year’s first-quarter figures, with organic growth soaring 114.4% against Q1 2020/21, and up 29.8% compared with pre-pandemic trading.
The firm attributed the success of its Cognacs to momentum in the US and mainland China, noting that its brands have embarked on several marketing pushes. Rémy Martin, which was named the number-three spirits brand on social media in The Spirits Business‘ 2021 Brand Champions report, launched its Team Up for Excellence campaign in partnership with musician Usher, while Louis XIII drove a direct-to-consumer strategy by opening a shop in Singapore’s One Raffles Place Mall.
Meanwhile, liqueurs and spirits also helped the company’s results. The division saw sales climb by 90.5% in organic terms, ‘rising sharply’ across regions.
The US experienced strong sales thanks to orange liqueur Cointreau, the development of the business’ whisky portfolio and the performance of The Botanist gin. In China, whisky brands were crucial, especially Octomore, and in the EMEA (Europe, Middle East and Africa) region, the recovery of the on-trade was a major factor.
Based on its performance thus far, the company has predicted an ‘excellent first half’ for 2021/22. The group said it would ‘significantly increase’ its funding for communications to support its brands.
Rémy Cointreau is currently in the midst of a legal battle with cannabis company Canopy Growth over alleged trademark infringement.