Rémy Cointreau Sees U.S. Rebound Delayed Until Next Year
October 27, 2023Rémy Cointreau has flagged challenging conditions in the U.S., which are expected to delay a rebound in the company’s sales until next year. Rémy reports that sales were down 10.8% globally for fiscal Q2 amid a slower recovery in the U.S. and continued destocking. For the company’s fiscal first half, Americas sales were down nearly 50% on an organic basis. Globally, sales fell 22% to €636.7 million ($672m) in the first half through September. The company is now expecting a 15%-20% drop in sales for its full fiscal year, compared with a stable outlook previously.
Rémy’s Cognac division, its largest in dollar terms, sales dropped 30.1% in the fiscal first half to €416.1 million ($439m), attributed to declines for Rémy Martin in the U.S. Rémy pointed to “a normalization of consumption and an intense promotional environment” as reasons for the decline, adding that “a rise in interest rates has cut distributors’ financing capacity.”
Still, while the company’s Cognac division struggled, its Liqueurs & Spirits division held steady, rising 0.1% on an organic basis. Rémy noted that Cointreau, Bruichladdich, and The Botanist all performed well in the U.S., especially in the second quarter when sales rose 12.1%.—Shane English
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