The sun is shining down on the world’s number 2 cognac producer, Rémy Martin. Their trading figures for the fiscal year ending March 31 show that sales are up 12.1%. This means an increase in turnover of €486 million and a profit of €140.5 million. What is even more remarkable is that the profit has grown twice as fast as the sales.
CEO, Patrick Piana, is hopeful of double digit growth in the years to come. He has attributed the current growth to the strategy of upmarket brands, along with the home distribution network created after the release of Maxxium in 2008.
They have also announced that the house will purchase 66,000 hectolitres of pure alcohol in the 2011 trading year – an increase of 13%. This decision was taken in dual consultation with representatives of Générale d’Alliance Fine Champagne. The purchase price will be known just before the 2011 harvest, and in keeping with past years it’s thought that there will be an increase in price of around 3 – 5%.
It is hoped that the cognac houses can help the growers avoid the ‘yo-yo’ effect of drastic price change, and that they can come up with an agreement that will provide a sustainable partnership for all.
Taking everything into consideration, it is not unforeseeable that sales of cognac and profit will see a continuing steady growth and reach double figures in the years to come.