Distribution problems holding back Rémy

French spirits producer Rémy Cointreau has announced its value sales shrank 5.9% in the first half of 2015, which it blames on distribution changes in its key markets.

Rémy’s reported growth was positive by nearly the same amount – 6.1% growth to €500.7 million (£368m) – but that figure is due to favourable currency fluctuations with the weaker Euro.

Organically, not taking account of currency movements, group sales declined across all of its divisions. Rémy Martin Cognac dropped 3.1% and Liqueurs and Sprits – including flagship brands Cointreau and Bruichladdich – fell by 8.3%.

Greek spirit Metaxa’s sales “fell significantly” over the six months to September 30, due to the economic problems plaguing the country and Russian demand falling.

The recent cancellation of Rémy’s US distribution contract with Piper and Charles Heidsieck Champagnes contributed to its Partner Brands division declining 12.6% organically.

“Changes in distributors in certain markets and adaptation of the distribution network in China” all held back the groups performance, it claimed.

The company maintained that it expects to achieve positive organic growth in operating profit in the 2015/16 year.