Analysis - Remy Cointreau "reassuring" on Cognac growth
Some analysts fear a Cognac slowdown
In full-year results released today (18 April), Remy admitted “more modest” Cognac volumes growth but continued to post high double-digit sales growth for its Remy Martin brand, up by 21.5% year-on-year.
UBS analysts said in a note that that overall organic sales were better than expected. Cointreau sales in the US helped the company's liqueurs and spirits category outpace market predictions, it flagged.
Remy's management was “reassuring” about China's Cognac sector, UBS said, which some analysts believe is slowing down after years of strong growth.
“(Management) sees no negative mix issue in the Cognac portfolio, and pricing continues, especially at the higher end,” UBS said.
However, Pernod Ricard, whose Martell Cognac brand has been performing well in China in recent years, admitted last month that a government crackdown on inter-governmental gift-giving and banquets was part of the reason for its “soft” performance in China in the calendar year so far.
- Focus - Pernod's YTD Performance by Region
- just On Call - Pernod shifts Scotch focus in China
- Focus - Heineken's Q1 Performance by Region
- Focus - Coca-Cola's Q1 Performance by Region
- Diet Coke "a work in progress" in US - Coca-Cola
- CFO of Diageo's United Spirits stands down
- Pernod Ricard sees YTD recover as sales increase
- BrewDog launches GBP25m crowd-funding attempt
- Africa "subdued" but Heineken sees Q1 rises
- Elements 8 revamps rum packaging
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- ALDI 2015: Radically transforming Anglo Saxon grocery markets