Remy Cointreau’s First Half Sales Fall On China DifficultiesNovember 30, 2015
Rémy Cointreau’s net sales fell by 5.9% on an organic basis in its fiscal first half, largely due to ongoing challenges in China and an overall shipments decline amid a recent strategy shift undertaken by CEO Valérie Chapoulaud-Floquet. However, propelled by a favorable currency exchange impact, the French drinks group’s reported net sales rose by 6.1% to €500.7 million ($530.7m) for the six-month period ended September 30. Flagship brand Rémy Martin endured a 3.1% sales decline, as continuing weakness in China offset strong results in the Americas. Remy Cointreau’s volumes in Asia have fallen in part because of a recent strategic shift. Chapoulaud-Floquet, who took the helm at Rémy in mid-2014, said last summer that Remy was sharpening its focus on the luxury end, aiming to increase $50-plus products’ share of Rémy’s business from its current 45% to more than 65% within the next five years.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.