Rémy Cointreau’s Sales Flat In First Quarter, But Rémy Martin Thriving In U.S.July 20, 2016
Rémy Cointreau’s first quarter sales were flat on an organic basis as strong growth for flagship brand Rémy Martin in the U.S. was offset by declines in Asia Pacific and Europe. The results were in line with the company’s expectations.
Rémy Martin’s sales in the three months ending June 30 were down by 0.5%, but the Cognac brand is thriving in the U.S., where the category has been enjoying a renaissance led by top-seller Hennessy. The company said Rémy Martin’s depletions jumped by 17% in its fiscal first quarter, while the overall Cognac category grew at roughly half that rate during the three-month period. Remy Cointreau also reports that, in the 12 months through June, the brand’s depletions were up by 14.5%—also well ahead of overall category growth. Cointreau is also achieving strong growth in the U.S., with depletions up 9.5% in the quarter and 6% in the 12 months through June. The liqueur brand fared worse in Europe, however, leading to an overall slight sales decline.
Rémy Martin also experienced solid progress in China in the first quarter, with mid-single digit depletions growth, but the Cognac brand still lost ground in the Asia Pacific region. For the full 2016-17 fiscal year, Rémy has confirmed its projections of modest growth in operating profit. —Peter ZwiebachSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.