Rémy Cointreau sales slip in Q3By Nicola Carruthers
French firm Rémy Cointreau saw organic sales fall by 6% in the third quarter (Q3) of its 2022/2023 full year as Cognac consumption dropped in the US.
The company’s organic sales in Q3 (October to December 2022) of fiscal 2023 dropped by 6% to €414.3 million (US$450.9m) after two years of ‘exceptionally strong growth’.
It followed a strong first half performance for the group, with organic sales rising by 21.1%, led by double-digit Cognac gains.
Despite the decline in Q3, Rémy Cointreau’s sales for the nine months to December 2022 rose by 10.1% to €1.3 billion (US$1.41bn).
Sales of Cognac in the last three months of 2022 dropped by 11% to €296.2m (US$322.3m), with Cognac consumption normalising in the US, offset by a ‘very steep rise’ in shipments to China.
The group said it was successful in generating ‘robust sales’ of Cognac ahead of the Chinese New Year across Asia Pacific.
The company’s liqueurs and spirits division grew by 10.1% to €108.6m (US$118.1m) during the third quarter, led by orange liqueur Cointreau and Islay Scotch whisky Bruichladdich in the US.
Sales in the Americas saw a ‘strong decrease’ in Q3, while the Asia Pacific region ‘rose vigorously’ due to developments in China and travel retail recovery, the company said.
The producer plans to launch a major TV campaign for its Rémy Martin Cognac brand during the Superbowl, as well as on- and off-trade activations.
The Europe, Middle East and Africa (EMEA) region was slightly down in sales, as a result of phasing effects in Europe. But the company noted a ‘strong performance’ in both the UK and Benelux.
Rémy Cointreau confirmed its aim is to generate ‘another year of strong organic growth’. The firm expects a normalisation of consumption trends for the fourth quarter of its fiscal year.
The group said it would focus on medium-term brand development, supported by ‘sustained investment’ in marketing and communications, particularly in the second half of the year.
This month, 818 Tequila reported that it was gaining new consumers in China who had previously favoured Cognac.