Rémy Cointreau backs zero-ABV brand as Q1 sales rise
French firm Rémy Cointreau has taken a minority stake in alcohol-free producer JNPR Spirits and reported a first-quarter sales rise of 5.7%.
The Corporate Ventures arm of Rémy Cointreau completed the investment in JNPR, a French zero-ABV ‘spirits’ brand, for an undisclosed sum on 24 July.
The transaction marks Rémy Cointreau’s first move into the alcohol-free category.
The deal is part of the group’s strategy of ‘anticipating and testing emerging consumption trends’, such as the fast-growing demand for non-alcoholic alternatives.
Founded in 2020 by Valérie de Sutter, JNPR will be able to accelerate its development in France and global markets with Rémy’s backing.
Rémy Cointreau will provide distribution and marketing expertise to JNPR, while its founder and team will maintain creative control and independence.
JNPR takes its name from the juniper berry, a key ingredient in the brand’s range.
The investment was announced at the same time as the group’s financial results for the first quarter (Q1), which covers April to June 2025.
Q1 sales rose by 5.7% to €220.8 million (US$258.7m), led by a double-digit increase for spirits and liqueurs (up by 17.3% to €86.2m).
The Q1 results followed a full-year sales decline of 18% to €984.6m (US$1.12 billion).
In terms of regions, Q1 sales in the Americas rose by double digits, while Asia Pacific was down due to ‘complex market conditions’ in China and the country’s duty free market.
The Europe, Middle East and Africa (EMEA) region recorded a decrease because of ‘fierce competitive pressures’ and ‘sluggish’ Cognac demand.
The Americas region, especially the US, delivered ‘significant’ gains for spirits and liqueurs. Within the region, the firm noted the outperformance of Cointreau liqueur, which recently unveiled a new campaign with Aubrey Plaza, and The Botanist gin.
Last week, Rémy Cointreau announced a distribution deal with Southern Glazer’s in California after Republic National Distributing Company’s exit from the market.
Sales of spirits and liqueurs in EMEA were boosted by ‘good momentum’ for Cointreau, Greek brandy Metaxa and Mount Gay rum.
Asia Pacific also reported strong growth for spirits and liqueurs, led by China and the rest of Asia, Cointreau and Scotch whisky Bruichladdich.
Cognac sales up
The owner of Rémy Martin saw Cognac sales grow slightly by 1.4% to €131.1m (US$153.6m), driven by a ‘steep rise’ in the Americas, particularly in the US.
The group noted that Cognac’s increase was also due to a high comparison base with the same quarter in the previous year.
Cognac experienced a minor sales decrease in Asia Pacific due to ‘tough market conditions’ in China, particularly in the high-end segment, and the inaccessibility of duty free.
Sales of Cognac in China’s travel retail channel were significantly impacted by the country’s anti-dumping investigation into EU brandy imports.
Earlier this month, China concluded the investigation with several major Cognac players agreeing to a minimum import price, including Rémy Cointreau, in return for the removal of anti-dumping duties.
Rémy Cointreau said in a statement at the time that the agreement provided a “significantly more favourable outcome, or at the very least, a substantially less punitive alternative, compared to the imposition of definitive anti-dumping duties”. It also stated that the signing of the deal was not an acknowledgement of dumping practices.
Organic sales of Rémy Cointreau’s partner brands division plummeted by 41.7% in the first quarter, but no explanation for the decrease was given.
Updated tariff impact estimate
Last month, Rémy Cointreau withdrew its sales targets for 2029-30 due to uncertainties over US-China tariffs and a lack of recovery in the States.
For the 2025-26 full year, Rémy Cointreau expects organic sales to return to mid-single-digit growth, driven mainly by a strong US rebound.
The group has also provided an update regarding potential increases in customs tariffs following the minimum price agreement in China and recent developments in the US. From 1 August, the US will impose a 30% duty on imports from the EU but reports of a potential trade deal between the two nations could lead to a lower tariff rate.
Rémy Cointreau now expects the maximum total net impact from these tariffs to be €45m (US$52.7m), lower than the €65m (US$76.1m) that was previously estimated. This is divided by €10m (US$11.7m) in China and €35m (US$41m) in the US, which were formerly €40m and €25m respectively.
As a result of this reduced anticipated impact, Rémy Cointreau expects an organic decline in current operating profit of mid to high single digits (previously mid to high teens).
Fellow French firm LVMH also reported its latest financial results with first-half spirits sales plunging by 15%.
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