After A Tough Year For Cognac, Rémy Martin Looks Ahead To Major Milestone

It’s been a rough year in the Cognac category, with volume down 16% in control states through October, after totaling 6.5 million cases market-wide in the U.S. in 2022, according to Impact Databank. Second-ranked brand Rémy Martin had U.S. volume of just over 1 million cases last year, and has faced challenges along with the rest of the category in 2023. But Nicolas Beckers, CEO of Rémy Cointreau Americas, tells SND that the brand has grand plans to reignite momentum in 2024, which coincides with the Cognac house’s 300th anniversary.

“In the spirits category in the U.S., one of the prominent trends is the ‘Drink Less but Better’ movement,” he says. “Consumers are increasingly shifting towards a more qualitative approach, opting for premium and high-end spirits. This trend aligns perfectly with the essence of luxury and craftsmanship that Cognac offers.”

The on-premise will continue to play a key role as Rémy Martin looks to rebound. “On-trade represents a significant growth opportunity,” says Beckers. “While we’re seeing growth in lodging and casinos, the biggest opportunity lies in nightlife, where we plan to accelerate our investments as part of the 300-year anniversary celebrations with XO. Our focus will remain on continuing to build our higher-end marques in the on-premise, and we’ve established a dedicated luxury team to further develop this channel.”

After advertising during the Super Bowl this past year with a spot featuring tennis great Serena Williams—which Beckers says was aimed at expanding Cognac’s female audience—Rémy Martin has continued to boost visibility with its ongoing collaboration with Grammy Award-winning performer Usher, most recently with a “Life is Melody” campaign. The brand has also reached out to the Latino demographic, including with its Rémy Sobremesa campaign, which Beckers says was “rooted in the Hispanic tradition of getting lost in conversation and savoring the post-dinner experience.”

The house’s 300th anniversary will see Rémy Cointreau continue to go on offense in 2024. The effort has already kicked off this holiday season with limited edition bottles of Rémy Martin XO, Rémy Martin 1738 Accord Royal, Rémy Martin Tercet, and Rémy Martin VSOP. In the Cognac region itself, the historical house of Rémy Martin will reopen next year after renovations, offering new hospitality features. And further afield, the brand will launch a Centaur Tour, which Beckers calls “an immersive tour offering elevated on-premise experiences making an appearance at some of the most renowned nightclubs in the U.S.”

For the longer term, Beckers notes that Rémy Martin is intent on burnishing its sustainability credentials, an important piece of the brand’s identity, especially with younger consumers. It’s aiming to source its eaux-de-vie from 100% environmentally certified winegrowing areas within five years, while also transitioning to regenerative agriculture, with 270 hectares (667 acres) expected to be converted by 2028.—Daniel Marsteller

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