Rémy suffers sales setback in Q1

Rémy Cointreau’s move into premium pricing has unnerved its Asian and American markets, contributing to a 9% sales decline in the three months to 31 June.

Asian orders for Rémy Martin Cognac continue to fall (Photo: Rémy Cointreau)

While revenues from higher-priced sales marginally improved by 3.9% to €223.3 million (£156m) in the period, falling Cognac orders from Asia and slow consumer adjustment to pricier Cointreau in the US led to poor volume sales.

The company’s Cognac division, Rémy Martin, suffered a 6.7% decline in organic sales. Rémy’s Liqueurs and Spirits division, which includes Islay whisky Bruichladdich and Cointreau, fell by 13.8%, the French company revealed.

Rémy Cointreau has blamed the poor performance of Liqueurs and Spirits on recent political and economic problems in Europe. Greek liqueur Metaxa suffered particularly badly from the country’s near-exit from the EU, and Russian sanctions continue to hamper the group’s Travel Retail sales.

Western Europe and Middle East & Africa proved better markets for Rémy in the period, posting healthier performances. However, these markets couldn’t counter sharp declines elsewhere – declines that have spooked the market and led to a 4% fall in Rémy Cointreau’s share price according to Bloomberg. 

Last month, the company revealed its intention to move squarely into the premium spirit market off the back of improving sales of its high-end Scotch and favourable trends for Cognac in the US.