French spirits major Rémy Cointreau has lowered the net impact it expects to receive from tariffs in China, but increased it in the US.
The news was announced in the company’s first quarter results alongside an investment in French non-alcoholic spirits business JNPR.
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In the company’s first quarter results for its fiscal 2025-26 period, published today (25 July), the group said it expected total net impact of €10m ($12.9m) from tariffs in China, a cut on the previous €40m forecast.
However, for the US, the group said it now expects to see a hit of €35m, which is €10m more than the prior €25m estimate.
The improved tariffs guidance in China follows the establishment of a minimum-price agreement between the company and Chinese authorities, the group said.
Earlier in July, China’s Ministry of Commerce (MOFCOM) confirmed anti-dumping duties were to be imposed on EU brandy imports but some companies will be exempt after agreeing a deal on prices.
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By GlobalDataPernod Ricard, Rémy Cointreau, and Hennessy were to be exempted, Just Drinks understood at the time.
The Mount Gay brand owner added in today’s results statement that: “As revised estimates of the impact of customs duties are less than anticipates, the group has opted to reallocate part of its investments, particularly in China.”
Following the tariffs guidance change, the business said it now expects to see organic decline in current operating profit “of mid-to-high-single-digits”, an improvement on the prior expectation of “a decline of mid-to-high-teens”.
In its first quarter ended in June, Rémy booked €220.8m in total sales, a 1.8% reported and 5.7% organic increase on the year prior.
Its Cognac division saw sales decline 3.1% on a reported basis but grow 1.3% organically to €131.3m. Its liqueurs and spirits unit saw sales grow 13.6% on a reported basis and 17.3% organically.
In the same results statement, Rémy also announced its investment in a French non-alcoholic spirits brand JNPR.
Financial details of the investment, which was made via the group’s venture fund Rémy Cointreau Corporate Ventures, were not disclosed.
“This investment aligns with Rémy Cointreau’s strategy of anticipating and testing emerging consumption trends, such as fast-growing demand for alcohol-free alternatives in France and internationally,” the Bruichladdich whisky producer said.
JNPR’s portfolio includes an alcohol-free spritz and bitter, as well as a range of sugar-free non-alcoholic bottled spirits.
The investment is expected to enable JNPR “to accelerate its development in France and in select international markets”, Rémy said, adding that as part of the deal, it’s ventures arm would “contribute operational expertise in distribution and marketing”.
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