FRANCE: Remy Cointreau Q1 sales take China beating
- Q1 sales fall by 2.3% to EUR263.7m (US$346.5m)
- "One-off factors in China" hamper three months to end of June
- Remy Martin Cognac sales dive by 12.9% to EUR149.3m
- Inventory destocking expected to affect Q2
Remy Cointreau has posted a slip in Q1 sales
The company, whose drinks portfolio is dominated by the Remy Martin Cognac brand, said earlier today (18 July) that group sales in the three months to the end of June fell by 2.3% on the corresponding period a year earlier, coming in at EUR263.7m (US$346.5m). Sales of Remy Martin decreased more markedly, by 12.9% to EUR149.3m.
Remy said that its Q1 performance was "adversely affected due to one-off factors in China". The introduction of a clampdown on gifting to civil servants and ban on alcohol at luxury banquets, introduced late last year, has already hit the performance of Remy's main Cognac competitor in the country, Pernod Ricard.
Despite the touch conditions in China, Remy Martin sales benefited from improved momentum in the spirits market in the US, while European sales for the brand were stable, thanks to Russia and the UK.
Remy's other spirits and liqueur brands, including Cointreau and Mount Gay rum, delivered a collective 13% jump in sales in the quarter, to EUR57.8m.
A 20.5% leap in sales of 'partner brands', which came in at EUR56.6m, was credited to sales growth in the US.
"Rémy Martin is likely to remain adversely affected by continued inventory destocking in the second quarter ending 30 September 2013," the company warned. "Nevertheless, the group remains confident in the medium and long-term in Asia and particularly in China, and considers that the slowdown is due to measures focusing on conspicuous behaviour, which does not detract in any way from the brand’s exceptional fundamentals."
The company will release its half-year sales results on 17 October.
To read the company's official statement, click here.
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....
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....
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...
As one would expect, yesterday's news that Remy Cointreau's CEO, Frederic Pflanz, has stepped down after just three months in the role hit the French company's share price this morning....
- What's so special about Islay anyway? - Comment
- Six key trends for alcoholic drinks in 2016
- What do Bourbon and craft beer have in common?
- Ten things to know about spirits in the US
- Aus wine industry pays price for past failures
- Alcohol industry warning over Kroger plan
- SABMiller hits back in UK corporation tax row
- Bacardi ups ante in US Havana Club row
- Suntory bids for Lucozade, Ribena Nigerian network
- Diageo's Orphan Barrel The Gifted Horse - NPD
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Global Whiskey Market 2016-2020