FRANCE: Remy Cointreau Q1 sales take China beating

By | 18 July 2013

  • 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

Remy Cointreau has posted a slip in Q1 sales

Remy Cointreau has posted a slip in second-quarter sales, as recent changes in the spirits market in China made their presence felt.

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.

Expert analysis

Remy Cointreau : Consumer Packaged Goods - Company Profile, SWOT & Financial Report

Canadean's "Remy Cointreau : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and services, swot analysis, business description, company history, key competitors, financial analysis, recent developments, key employees, company locations and subsidiaries as well as employee biographies.

Sectors: Company results, Emerging markets – BRIC, Spirits

Companies: Remy, Cointreau, Pernod, Ricard

View next/previous articles

Currently reading -

FRANCE: Remy Cointreau Q1 sales take China beating

There are currently no comments on this article

Be the first to comment on this article

Related research

Rémy Cointreau Group in Spirits (World)

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 its key engine for growth in recent years but as pro...


This report analyzes the worldwide markets for Wine in Million Litres. It includes all wine categories, still, (red, white and rose), sparkling, fortified, vermouth, non-grape wine, wine coolers and ice wine. The report provides separate comprehensiv...

Global market review of rum – forecasts to 2017

For a category that sells around 146.4m cases annually, it may seem unusual to characterise Rum as a relatively unexploited opportunity. Indeed it is already a diverse and eclectic category with a wide geographic spread but there are a number of regi...

Related articles

just the Facts - Spirits Acquisition Multiples, 2001 to Present Day

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 analysts at Nomura, we list the multiples of spirits purchases this Century.

Analysis - Little likelihood of spirits consolidation any time soon

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 transactions suggest not.

Analysis - Pernod Ricard Q2/H1 Results

Is the stage set for Pernod Ricard to return to a healthier level of growth this year? One analyst believes so, although another has forecast that the company still has a way to go.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page