News

China security boost drives Travel Retail woes - Remy Cointreau

Most popular

Another drinks CEO steps down - But, why?

Pernod Ricard Performance Trends 2014-2018 - data

What's coming up in soft drinks in 2019?

What's coming up in spirits in 2019? - Predictions

MORE

Remy Cointreau's CFO has said stricter border controls helped drive down Travel Retail sales this year as the channel failed to match strong growth elsewhere for the company.

Remy Cointreau has blamed pressure in Travel Retail on factors including currency fluctuations and Chinese border security

Remy Cointreau has blamed pressure in Travel Retail on factors including currency fluctuations and Chinese border security

Luca Marotta told analysts yesterday that Travel Retail "remained very weak" in Remy's latest first-half results despite solid gains across other regions, particularly the US and China. The CFO said currency fluctuations and the political environment were behind the weakness, on top of increased security at Chinese borders dampening demand for "expensive purchases".

Marotta explained: "Controls, not only Chinese borders, have become more and more strict," Marotta said. "And because there are lot of travellers they spend less. And when we are in a dramatic and global environment, which is shaking, you have less time."

A number of spirits producers have reported pressures on Travel Retail this year, including Brown-Forman, which has blamed "a reduction in the historic price gap between Travel Retail and the local economy" for sales declines. Last month, Pernod Ricard's CFO, Gilles Bogaert, forecast a tough 2017 to add to a difficult 2016 for global Travel Retail.

The end is nigh for Global Travel Retail - Comment

Remy's Travel Retail problems were one of the few dark spots in an otherwise bright H1, in which sales increased by 4%, well ahead of analysts' expectations. However, Marotta warned that his company's buoyant Q2, which drove the first-half figures, should not be taken as reflective of the rest of the year.

Remy also performed better than expected in China, but Marotta said the real surprise was in Russia.

"Strangely enough, in Russia, we are overperforming on the entry level and in very superior level," he said. "So, outperforming in the extreme clusters and underperforming on the centre one."


Sectors: Spirits, Wine

Companies: Remy Cointreau

Related Content

Remy Cointreau fiscal-2018 - results data

Remy Cointreau fiscal-2018 - results data...

Is Metaxa the next big thing for Remy Cointreau? - Analysis

Is Metaxa the next big thing for Remy Cointreau? - Analysis...

Cognac gains set to level off but Remy Cointreau still packs a punch - Analysis

Cognac gains set to level off but Remy Cointreau still packs a punch - Analysis...

Selling

Selling "exceptional spirits" an expensive business for Remy Cointreau - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?