Rémy’s First Quarter Sales Strong In U.S., But China’s Weakness Leads To DeclineJuly 18, 2013
Rémy Cointreau enjoyed a “significant sales increase” across its U.S. business in the three months through June, its fiscal first quarter, but destocking in Asia weighed down its overall performance, as sales fell 2.3% to €264 million ($345m). Rémy Martin Cognac was up double-digits in the U.S. as consumers moved up to higher Cognac qualities, and the brand’s European sales were stable. But Rémy Martin’s sales in China slipped as distributors destocked in response to the Chinese government’s campaign to reduce intra-governmental entertaining, which constitutes a significant slice of the value pie in China’s spirits market. Rémy warned that destocking in China was likely to continue over the next three months, but said it remains confident in Asia’s medium- and long-term potential. Overall, Rémy’s Cognac sales fell 13% to €149 million ($195m) for the first quarter. Its Liqueurs & Spirits and Partner Brands units were up 13% and 21% respectively.