Remy Martin has faced problems in China

Remy Martin has faced problems in China

Remy Cointreau today reported a drop in first-half sales after another weak showing in China. Here, just-drinks takes a closer look at the company's performance by brand in the six months to the end of September.

Rémy Martin

Reported sales dropped by 15.4% and by 13.4% organically, with Remy blaming continued destocking in China and a “complex macro-economic environment” in Western Europe.

However, the company also said the declines masked “the success of the brand’s superior qualities in the US, particularly for 1738 Accord Royal” and “strong” demand in Central and Eastern Europe, South-East Asia and Africa.

Liqueurs & Spirits

Reported sales increased by 7.6% and by 9.1% organically. Remy said that the unit's growth was “buoyant across all its major regions” in the six-month period, with “strong momentum” in major markets including US, France, Australia and Japan.

Metaxa sales grew by double-digits, driven by Central and Eastern European markets, with “outstanding” growth in Greece. Bruichladdich sales doubled in the first half, driven by the strong momentum of its product range in the US, Taiwan, the UK and Travel Retail, Remy said. Mount Gay “consolidated its sales” while Travel Retail, Canada, France and Eastern Europe emerged as additional growth drivers for the brand, Remy said. St-Rémy posted “respectable growth” as Canada led performance.

Partner Brands 

Reported sales fell by 40% because of the loss of the Edrington contract in the US. Organically, sales were up by 6.8%. Following the end of the Edrington contract, Remy's partner brands now include the Piper-Heidsieck and Charles Heidsieck Champagnes, some of William Grant & Sons group’s spirits and Russian Standard vodkas.

“The solid (organic) sales growth over the first six months is due to their strong performance in the EMEA region and in Travel Retail,” Remy said.