Cognac demand rises in China

Cognac demand rises in China

Remy Cointreau has reported a 4.5% drop in like-for-like sales in the first nine months of 2009, after strong demand for Cognac in Asia failed to fully offset sliding Champagne sales.

Sales for the nine months to the end of September were EUR588.8m (US$829.7m), compared to EUR604.5m in the same period of 2008, Remy Cointreau said today (21 January). The fall represents a 2.6% fall when exchange rate differences are stripped out.

Strong demand for Cognac in China, particularly for Remy Martin, saw like-for-like Cognac sales rise by 1.5%.

Champagne sales tumbled by 32.5% for the period, although this improved to a 20% drop in the third quarter.

"Champagne sales, as anticipated, were affected by the crisis, but Piper-Heidsieck and Charles Heidsieck resolutely continued their pricing policy against a background of widespread price reductions," said Remy.

The group predicted "slight" growth in like-for-like operating profits for the current fiscal year, to the end of March 2010.

For Remy's half-year results, click here.