Cognac Maker Remy's CEO Resigns

Remy Cointreau CEO Steps Down Amid Trade Challenges

By Emma Rumney

LONDON (Reuters) -Remy Cointreau CEO Eric Vallat has resigned to pursue another professional project after more than five years leading the French cognac maker, the company said on Wednesday.

Vallat's resignation comes as Remy finds itself at the sharp end of trade disputes affecting sales in its two biggest markets, the United States and China.

The board accepted Vallat's resignation, effective this summer, the statement said, adding that chairperson Marie-Amelie de Leusse will oversee the transition until a successor is chosen. It did not say what Vallat planned to do after leaving Remy.

"I would like to express our sincere gratitude to Eric for his commitment, leadership and strategic vision," de Leusse said, wishing him success in the future.

Remy's U.S. sales were spiralling downwards even before U.S. President Donald Trump announced sweeping tariffs that would add a 20% levy to French exports such as cognac. And China imposed tariffs on European Union brandy earlier this year.

Remy makes 70% of its sales from cognac, the vast majority of which is sold in those two nations. This has left it more exposed to the tariffs than some competitors with a broader geographic reach or product portfolio.

The company's shares have registered by far the steepest decline as spirits sales have slipped across the industry after a post-pandemic boom. Its stock is down more than 26% this year.

Vallat said he had strengthened the group's foundations and was convinced his successor would be able to rely on strong brands to prepare for a recovery.

"My commitment will remain total until my official departure date," he added.

Trevor Stirling, analyst at Bernstein, said he had viewed Vallat as a "very competent CEO" throughout a roller-coaster tenure starting with the COVID-19 pandemic.

"Inevitably, there will be a period of internal anxiety until the future CEO is announced and bedded in," he added.

The terms and conditions of Vallat's departure compensation will be submitted to shareholders at the next general meeting, Remy said.

(Reporting by Gdansk Newsroom and Emma Rumney in London; Editing by Makini Brice, Rod Nickel, Joe Bavier and David Goodman)