FRANCE: Rémy Cointreau FY sales slip

Champagne and Cognac group Rémy Cointreau has joined the growing list of drinks companies decrying de-stocking by wholesalers, after seeing sales slip by 11.6% for its fiscal full-year.

Rémy said today (16 April) that sales for the 12 months to the end of March fell by 11.6% to EUR714m (US$939.7m). Excluding partner brands, sales fell by 10.5% to EUR633.6m.

The French drinks firm blamed the sales slide on de-stocking by wholesalers and distributors worldwide, most notably in the US and Russia.

It added that fourth quarter turnover was hit by a reduction in stocks related to the group's exit from the Maxxium Worldwide distribution venture and the subsequent change in distribution arrangements in several markets.

Several other drinks firms, including Pernod Ricard yesterday and SABMiller today, have also warned that sales have been damaged by wholesaler de-stocking. Wholesalers have been nervous about ordering new stocks amid weakening consumer confidence, preferring instead to run down existing inventory levels.

Rémy said that its Champagne sales fell by 9% for the year, despite "satisfactory" growth in Asia and the UK. Cognac sales fell by 13.5%, although superior quality Rémy Martin reported double-digit growth in China. In other spirits, Rémy added that Mount Gay rum reported growth in its key US market.

Rémy reconfirmed that it expects organic operating profit to have fallen by 15% for the year.