Remy breaks annual sales slump as China lifts cognac sales
Remy Cointreau's Annual Sales Performance and Market Dynamics
By Emma Rumney
Annual Sales Results and CEO's Turnaround Plan
LONDON, April 30 (Reuters) - Remy Cointreau reported positive annual sales on Thursday for the first time since 2023, offering a boost for CEO Franck Marilly, who has pledged a turnaround at the embattled French cognac maker.
The maker of Remy Martin cognac and Cointreau liqueur reported 0.2% organic growth in annual sales, narrowly avoiding a third consecutive annual decline but falling slightly short of analyst expectations.
Sales of cognac, Remy's core product for which demand has collapsed in recent years, also fell short of forecasts.
CEO Franck Marilly's Strategy
Marilly took over as CEO in June, promising to revive performance and make the French spirits company less vulnerable to economic cycles, even if it meant cutting cognac prices to grow volumes. He is set to lay out his strategy in detail in June.
Challenges Facing Remy Cointreau
The company has been hit by a series of crises, from soaring costs of living to tariffs in its main markets of the U.S. and China.
Impact of Global Events
More recently, the Iran war has disrupted sales of luxury drinks in airports and threatens to further dent demand, as well as raise producers' costs for bottles, grain and more.
Regional Sales Performance
Growth in China
Cognac sales rose 15.5% in the fourth quarter, supported by strong performance in China, where Remy benefited from a "very favourable" comparison base a year earlier, the company said.
Performance in the Americas
In the Americas, Remy said it recorded a "slight decline" though efforts to revive U.S. sales of the cheaper version of its Remy Martin cognac helped an improvement versus the third quarter.
Sales Initiatives in the U.S.
(Reporting by Emma Rumney; Editing by Sherry Jacob-Phillips, Thomas Derpinghaus and Louise Heavens)
