This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Rémy Cointreau H1 ‘slightly below expectations’
French drinks group Rémy Cointreau saw its sales dip 0.6% to €523.9 million (US$585m) for the first half of its fiscal year due to the termination of distribution deals for a number of partner brands.
Rémy Martin unveiled Tercet Cognac during the first half of its fiscal year
In the six-month period between April and September 2019, the House of Rémy Martin saw its sales increase 5.6% to €379.6m (US$423.9m). The group said its Cognac was affected by a drop in tourism in Hong Kong and “slower than anticipated stock replenishment” from US retailers.
Rémy Cointreau added that the “performance masks continued steady demand” for its Cognacs and an “excellent” mid-Autumn festival in China.
During the period, the Cognac house debuted a number of initiatives and released its first permanent line extension for Rémy Martin in nine years, called Tercet.
The company’s liqueur and spirits division experienced “strong growth” of 7.5% to €131.2m (US$146.5m).
Cointreau liqueur witnessed an “excellent first half”, as a result of “continued strength” in the US and favourable trends in European markets, in particular France and Germany.
Greek spirit Metaxa declined due to the change of distributors in Central Europe and Germany. Rémy Cointreau said that the “strong performance” of line extension 12 Stars in key markets this summer “is encouraging for the brand’s growth outlook”.
Mount Gay rum and St-Rémy brandy also witnessed a “strong start to the year” led by the US and Canada, respectively.
The Botanist gin grew double digits, boosted by its expansion in the US and travel retail.
Rémy Cointreau’s whisky division “benefited from the success” of single malt, chiefly in Europe and Asia.
The company’s group brands, which include the divisions of House of Rémy Martin and liqueurs and spirits, experienced growth across all regions with a “strong” performance in Europe, Middle East and Africa (+7.1%), boosted by the UK and Africa.
Rémy Cointreau’s partner brands division fell 71.2% due to the end of major distribution contracts in the Czech Republic, Slovakia and the US. It is estimated to have an impact of €56m (US$62m) on sales and €5m (US$5.5m) on current operating profits for 2019/20.
Looking ahead to the rest of the fiscal year, Rémy Cointreau expects that 2019/20 “will unfold within the framework of the group’s medium-term objectives”.