Remy Cointreau has said that its Champagne arm is unprofitable and the group hopes to reinvest proceeds from selling the business into Cognac and other spirits.
A spokesperson for Remy Cointreau told just-drinks today (16 November) that the French drinks group has reviewed its profit targets and that its Champagne business does not make the grade. Remy said yesterday that it has hired Credit Agricole bank to set up a bidding process for Piper-Heidsieck and Charles Heidsieck Champagne brands and related assets.
“This is part of our value strategy for the group,” said Remy’s Paris-based spokesperson. “Champagne is not profitable enough,” she said, adding: “We want to reinvest in our high-end brands in order to accelerate growth.”
The French firm is particularly keen to invest more behind the Remy Martin Cognac brand in Asia. China became the firm’s largest market in net sales terms during its most recent fiscal year and premium Remy Martin Cognac has continued to perform well there in recent months.
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