Rémy Cointreau gets 12% sales boost because of its Cognac
The second biggest French wine and spirits company has increased its sales by 12% (fiscal year 2009-2010) – with an excellent final quarter! And why? Because they are also, of course, selling Cognac! The Asian Cognac activity boosted the result, while Champagne sales slightly declined. Sales of cognac increased 28 percent over the full year!
Remy Cointreau is about to get on a ship, full with Cognac, and leaves the crisis. The year of 2009 was associated with lower consumer spending, and now the company is back on track. The dynamic of Asia helped, the United States are stable and there is a significant recovery of Europe. In total, Remy Cointreau has a 2009-2010 revenue of 807.8 million euros. Okay, we don’t know their profit but let’s assume it’s better than in 2009.
In the fourth quarter 2009-2010, the French company has doubled its sales, exceeding far beyond the expectations of analysts. In this context, the group has confirmed that its operating income will be growing throughout the year. The final results will be presented on June 9th.
Asia is the power-element, escpecially with the booming market of Cognac in China. The timing of late Chinese New Year has had quite a positive effect on Remy’s Chinese sales. The company also benefited from getting back in control of their distribution structure in China, which was managed from the distribution network Maxxium before (e.g. they market Courvoisier in the UK).
In the U.S. and European markets, Cognac sales increased as well, although to a lesser extent. Liqueur and spirits Passoã Mount Gay Rum and St. Remy have all contributed to improved sales.
In contrast, activity champagne (Charles Heidsieck and Piper-Heidsieck), heavily by the United States market in particular, shows a steep drop in sales (- 23.6%). The group expects an operating loss for this division throughout the year 2009-2010. Rémy Cointreau has also announced that it wants to reduce the number of employees in Reims. The site currently counts 160 people, and it is expected that this figure will be decreasing to 110. The company calls this “difficult but necessary”.
Apparently Cognac really is back on track.
Source: Les Echos