Rémy’s Sales Down 5.6% For H1, But Expects ReboundOctober 16, 2014
It continued to be rough sledding for Rémy Cointreau in the first six months of its fiscal year, ended in September, but the company is still projecting positive organic sales growth for the full year. Overall, Rémy’s sales fell 5.6% to €472 million ($602m) on an organic pro-forma basis for the first half (stripping out currency fluctuation and the loss of its U.S. distribution pact with Edrington Group that occurred this past April). On a reported basis sales were down 16%.
Flagship Rémy Martin Cognac continued to suffer from destocking in Asia and posted a 13% organic sales decline. However, Rémy noted that the brand’s upscale range is prospering in the U.S. market, following a strategic decision to move away from the VS segment there.
Meanwhile, Rémy’s Liqueurs & Spirits division rose 9%, driven by solid performances by Cointreau, Metaxa, Bruichladdich and Mount Gay. The French group’s global partner brands segment—which after the departure of Edrington includes Piper- and Charles Heidsieck Champagnes, some William Grant & Sons spirits and Russian Standard vodkas—was up 7%.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.