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News
Rémy begins its bounceback
Rémy Cointreau has reported a modest return to growth as a strong end to its year and an “excellent performance” from the Americas saw the drinks group post an organic sales uplift of 0.6% for 2014/15.
The French-based group, whose brands include Rémy Martin, Cointreau, Metaxa, Mount Gay and Bruichladdich, achieved overall net sales of €965.1 million for the 12 months to the end of March 2015.
The result offers a vindication of Rémy Cointreau’s prediction of a return to growth this year, despite several years of sliding sales and a -5.6% decline in its first six months of 2014/15. This positive result was achieved thanks to a buoyant fourth quarter of the year that saw organic sales rise by 23.4%.
With its Rémy Martin Cognac accounting for over half the group’s sales, the brand’s 15% rise in organic sales during the last six months of the year, which was driven by all regions but especially China, played a key role in this recovery.
As well as enjoying double digit growth in Africa, Japan and Central Europe during 2014/15, Rémy Martin’s US success means that this market is now the brand’s biggest source of sales.
Meanwhile the group’s liqueurs and spirits portfolio achieved organic sales growth of 7.2%, a rise that it attributed to “a two-fold strategy of moving upmarket and internationalizing the brands.”
As Cointreau’s work with US mixologists paid off, Scotch whisky brand Bruichladdich saw sales “virtually” double in line with a recent step up in production at its Islay distillery.
In addition to enjoying its share of the attractive opportunity shown by the US market for drinks brands at the moment, Rémy Cointreau pointed to “remarkable growth despite a complex economic environment” for its Europe, the Middle East and African regions.
Although Asia-Pacific was down overall, the group pointed to its strong finish to the year as industry reports suggest that, while China’s overall spirits consumption is set to fall over the next few year, there remains a growing opportunity for imported products.