Analysis - Remy Cointreau turnaround to take longer then expected
Has Remy Cointreau's China crisis got further to run?
Earlier today (18 July), the French company posted a slight fall in first-quarter sales, with "one-off factors in China" being blamed for the slip. Authorities in the country introduced a clampdown on gifting to civil servants and a ban on alcohol at luxury banquets late last year.
Following Remy's results announcement, Melissa Earlham at UBS Investment Research suggested that the company's Chinese malaise ran deeper than she had forecast. "De-stocking in China was more severe than anticipated," said Earlham in a note to clients, "and is expected to continue into Q2FY and be completed by September/October – longer than we had thought."
Meanwhile, Ian Shackleton at Nomura noted that the company is targetting next year for a full turnaround. "The company sees next Chinese New Year as key, but has not put a timetable in place for any recovery in depletions," he said.
Shackleton also suggested that Remy has "material firepower" for further M&A activity, with access to up to EUR1bn. "(Remy) has ruled out a further Scotch deal for now, and has fairly narrow criteria for future acquisitions (must be high value), which may make it difficult to achieve," Shackleton said.
If Scotch sales receive an end-of-year bump this month, there's a good chance it is from whisky executives toasting a banner year for the brown stuff....
Rémy Cointreau punches above its weight in spirits, having established itself as a major global player in cognac despite its relatively small size compared to Pernod Ricard and LVMH. China has been it...
The final just-drinks management briefing of the year takes a look back at the last 12 months in the global drinks industry. The penultimate chapter in this five-part briefing reviews 2013 for wine....
This report comprises of high level market research data on the Belgium beer industry, published by Canadean. The report covers total market (on- and off-premise) and includes valuable insight and a...
With the end of the year looming, just-drinks is running a series of 'Top Tens of the Year' in the run-up to Christmas. Here are the ten most read news stories on just-drinks in 2013....
Eyebrows rose earlier this week at the US$16bn that Suntory is set to pay for Beam Inc. At 20 times the company's EBITDA, the transaction is at the more expensive end of the scale. Here, courtesy of a...
The rate of consolidation in the spirits category is markedly slower than that of many consumer industries. So, could the news this week that Suntory is set to buy Beam Inc trigger a wave of M&A? Past...
- Rekorderlig Deal Sees Molson Coors Miss Out
- Comment - Diageo CFO to North America? Do the Math
- 5 reasons why Constellation's Meiomi buy works
- Hail Marie Brizard: But, For How Long?
- Constellation Brands basks in beer glory
- Diageo ditches Shui Jing Fang plans in China
- MillerCoors changes CMOs with immediate effect
- Bacardi buys Banks rum
- C&C Group chairman backs CEO amid turmoil
- Diageo turns to W Ice in South Korea