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Remy Cointreau posted flat sales for the three months to the end of June |
Earlier today, Remy Cointreau posted flat underlying sales for the three months to the end of June. Here, just-drinks takes a closer look at the company's sales performance by brand and on a regional basis in the period.
Brands
Rémy Martin - 59% of group sales
A slip in sales for Rémy Martin in Asia Pacific was "not representative of FY expectations", the company said today. The brand was up in both value and volume by mid-single digits in Greater China, while sales rose by double digits in the Americas. Volumes in the US leapt by 17% compared to a market rise of 8.4% in the quarter, according to NABCA/DISCUS numbers cited by the company. An earlier Easter this year, paired with the introduction of price increases in Germany, hampered Remy Martin's sales in Western Europe, while Russia improved in the quarter.
Liqueurs & Spirits - 27% of group sales
Cointreau saw its sales slip in the quarter as the earlier Easter and price increases had an effect. In the US, however, depletions have shown "further acceleration in recent months" thanks to the Cointreau 'Fizz' marketing programme during the quarter. Metaxa, meanwhile, has returned to growth due to healthy numbers in Germany, Poland and Russia. Mount Gay, however, was down, due in part to price increases in the US on the Eclipse iteration. Remy Cointreau said it is focusing on pulling out the low-end expressions of Mount Gay in the US. The group's Islay Spirits unit, led by Bruichladdich single malt, posted double-digit sales growth, thanks to expansion into newer markets.
Partner Brands - 14% of group sales
Remy Cointreau's partner brands, including several William Grant & Sons brands, Russian Standard and some Campari brands in some European markets, performed well in the quarter, delivering organic growth of 4.3%. The Piper and Charles Heidsieck Champagne brands, which Remy ceased to distribute on 1 July, saw their sales "continue to decline" in the three-month period.
Regions
Asia Pacific
Despite "solid double-digit growth" for Remy in mainland China and Taiwan, as well as "ongoing strength" in Singapore, Malaysia and Thailand, the group saw the region produce a "planned drop" in sales in Q1. The slide is expected to reverse throughout the rest of the fiscal year, however. Travel Retail in the region continued to struggle, due to a lower per capita spend.
Americas
"Very strong" sales, equating to a double-digit lift, was driven by the US. Value depletions continue to grow in the country for Remy, while Canada had a good start to the year and Latin America posted a return to growth.
Europe, Middle East & Africa
With Easter occurring in late-March this year, compared to early April in 2015, shipments in Western Europe took a hit in Q1. In Central Europe, the company hailed "solid momentum" in Czech and Slovakia, while Poland also improved. Greece and Turkey were weak in the period, while further east, Russia and the CIS benefited from improving trends. The Partner Brands stable led growth in the region's Travel Retail channel, while in Africa, the company's growth rate slowed due to macroeconomic factors in Nigeria.
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