Global growth boosts Rémy Cointreau

Rémy Cointreau has reported “excellent” 25.5% sales growth during the first half of its year, in a performance which saw the ongoing Asian boom supported by a promising uplift the US and parts of Europe.

The French group’s €595.8 million sales between April and September 2012, which represented organic growth of 13.3%, was underpinned by its core brand Rémy Martin.

The Cognac enjoyed organic growth of 20.1%, building further on its strong performance in the first six months of last year. In addition to double digit growth in the US, the brand’s Asian sales “continued to be principally driven by ultra-premium qualities.” Sales in Europe, however, “presented a more mixed situation,” with Russia continuing to deliver strong growth.

The rest of the group’s spirits and liqueurs portfolio, which includes Cointreau, Passoa, Metaxa and Mount Gay Rum, recorded a more modest combined 3.5% organic growth. These figures also include one month’s worth of sales from Rémy Cointreau’s newly acquired Scottish whisky brand Bruichladdich, after the deal was completed on 3 September.

However, Rémy Cointreau painted a brighter report for these brands in Europe, as Germany and Russia in particular contributed to a strong performance from Cointreau, which also gained ground in the US, where a favourable dollar/euro exchange rate offered a further boost.

The company largely attributed the 4.4% organic sales growth in its partner brands to the US market, although it acknowledged, “Champagne sales remained more difficult.” Despite selling Charles and Piper-Heidsieck last year to EPI, Rémy Cointreau continues to manage the Champagne brands’ global distribution.

Despite highlighting “a more uncertain economic environment, particularly in Europe,” Rémy Cointreau stressed it “has all the resources needed to generate profitable growth and confirms its objective of significantly improving its earnings.”