Rémy has a strategy. Of course they have one.

The No.2 cognac producer has announced a great increase in revenues (almost 30%) at 405,7 million €. Okay, we do not know what kind of profit the made, perhaps they had more costs last year.

But still, this is a good sign for Rémy and good news for mother company Rémy Cointreau. 2008 and 2009 were difficult times for the Cognac producer – because of the economic crisis and leaving the distribution network Maxxium in Asia.

Rémy Martin has not yet found back to its results and performances they had before the crisis – but a new strategy is supposed to get them back.

Let’s look at the markets: Most of Rémy Martin’s revenue comes from Asia, then comes North America and Europe at only 15%. (source: Rémy-Cointreau « résultat annuel consolidé » June 2010).

Rémy Martin markets

The company sells about 1,9 million cases of 9 litres in 2009, far behind market leader Hennessy.

What is the plan?

Let’s have a look at the masterplan. Basically the focus lies on Asia, USA and its african-american music scene, Europe and the emerging markets – and last but not least: Get the acquisition of eaux-de-vie from Charente winegrowers right.

  • Asia

As Rémy Martin made its way out of the distribution joint venture deal with Maxxium in Asia (that was in 2009), mother company Rémy Cointreau takes over distribution in Asia. The Asian market is really important, as it represents more than 50% of Rémy’s income.

As China and other Asian markets more and more get into luxury and high-end products – marketing premium Cognacs make sense over there. That means, they do not want to sell more but for a higher price.

Taipei Point of Sale

How to achieve? Make the bottle more expensive. Take a VSOP and brand it as something ultra high-end, do a good marketing campaign which communicates the high standard, position products in luxury point of sales, get the right collaborations.

Louis XIII Rare Cask is a real premium product. People in Asia are ready to pay 10 oooo € for a Cognac, and it comes in a beautiful bottle.

  • USA and HipHop

The US market gets back on track and plays an important role for Cognac sales. The crisis did harm to the Rémy’s US business, but today the sell more Cognac again. The most succesful product in the US market would be the VSOP Fine Champagne.

Rapper T.I.

As Cognac Expert reported, Rémy Martin partnered with rapper T.I. who now represents Rémy in the United States, probably and especially the VSOP bottles. Rémy is not the first in doing that. Courvoisier had its Rap-near campaign, please also remember Busta Rhymes and “Pass me the Courvoisier” – Hennessy does DJ events and so on.

  • Europe and emerging markets

Germany, England and France are the most important markets in Europe (in that order). Of course, Russia is also important for the french Cognac house, India seems to have serious import taxes, in Brazil Rémy is a bit late.. they should have concentrated earlier on that market. Vietnam and Mexico are also interesting markets for the Cognac player.

  • Contracts with winegrowers and supply chain

Rémy Martin underlines that in these uncertain times, even with a slightly better performance of the Cognac market, one has to be careful. This is why Rémy will more and more do annual contracts with winegrowers – so the ‘maison de negoce’ can react better to market changes.

So those four core points make the Rémy Martin strategy. Do you really think this is how they will overtake Hennessy? No, don’t think so. They’ll defend their 2nd position on the world market, yes. But that’s probably it.. well pretty good though.

If you are interested in following Rémy Martin on facebook: go for it.

Pic: Thumbnail, Pinky and the Brain, Warner Brothers
Pic: Taipei www.moodiereport.com
Pic T.I.: Rémy Martin
Source: SudOuest, Rémy Contreau

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Max is a spirits expert and speaker, into marketing, technology, startups, and business development. He’s also a farmer. He likes tools and machines, Game of Thrones, and Better Call Saul. Included in his Top 10 Cognacs are the Audry XO and Bache Gabrielsen 1973.Max founded Cognac Expert in 2010 at his family’s estate in Poullignac, in the Cognac region, France. Started as a blog, today Cognac Expert is the world’s largest website about all things Cognac, a blog, and a specialized online shop featuring 800+ different Cognac bottles.

1 Comment

  1. Avatar

    I would love to help promote Remy, my 5 brothers only drink Remy. My fiance has been doing drink promo’s for nine years and she’s a model. I am CEO of Exclusivelyvip social club. I would love to work with Remy to achieve your goals of being number 1 cognac in Western New York

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