Strength In Asia, U.S. Drives Rémy Cointreau To Double-Digit Sales GrowthApril 18, 2013
Rémy Cointreau enjoyed double-digit sales growth in its recently concluded fiscal year, despite new laws in a key market—China—that have hurt competitors like Pernod Ricard. Rémy’s sales rose by 16.3% to €1.19 billion ($1.56b) for the 12-month period ended March 31, 2013. Organic growth rose by 8.8% (with Rémy’s group brands advancing by 10.3%), while foreign exchange effect was a positive 6.8% and changes in structure—related to largely to the acquisition of Bruichladdich single malt Scotch—accounted for a positive impact of 0.7%.
Flagship brand Rémy Martin Cognac achieved 12.7% organic sales growth for the fiscal year, even as China enacted a clampdown on inter-governmental gift-giving and banquets in recent months. Pernod Ricard has said the move has led to soft sales for Martell, China’s top-selling Cognac brand. Rémy Cointreau’s overall Asian sales were up by double-digits, as were its U.S. sales, while European sales were also on the rise. “Our business is basically divided evenly between Asia, the U.S. and Europe,” Rémy Cointreau CEO Jean-Marie Laborde recently told Shanken News Daily. “Because we don’t have as large a portfolio as some of our competitors, being well-balanced geographically is a key part of our strategy. It’s how we minimize risk.”