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BUSINESS NEWS: Remy pays Maxxium compensation
Remy cointreau is to pay Beam Global Spirits & Wine, Edrington Group and V&S Group €240 million in compensation for leaving Maxxium.
Rémy will terminate the Maxxium Global Distribution Agreement on March 30, 2009 in order to focus on alternative distribution options in priority markets such as Asia. Rémy’s equity share in the group was valued at €76.9m at the end of September this year.
It doesn’t look like the French company will have any problems paying the sum after recently posting an operating profit of €58.9m, amounting to an increase of 7.3% year on year to September 30.
Rémy has boosted its profits by focusing on top-end Champagne and Cognac brands. Piper-Heidsieck’s performance throughout the first six months of the year enabled the brand to record organic growth of 10.8% in turnover. Earnings from its Champagne stable almost doubled while profits from its Cognac portfolio rose 38%. However, overall sales were slow with revenues for the period up by only 0.3%.
© db January 2007