REMY COINTREAU GETS A BOOST FROM COGNAC
In the 12-months ending March 31 Remy Cointreau posted a 0.6% rise in comparable revenue, with sales of the group’s own brands increasing 4% helped mainly by cognac and champagne. However, success of the company’s own brands was hurt by declining sales of its partner brands, down a whopping 17.3%. Organic sales growth was 3.7%.
"Sales of the group's own brands increased by 6.9%. This performance, mainly due to cognac and champagne, reinforces the relevance of Remy Cointreau's premium strategy," the company said in a statement.
Cognac grew 12% for the 2007 fiscal year, witnessing its highest increase of the year during the fourth quarter. Remy Martin cognac grew 30% in the fourth quarter with its premium brands showing the most growth. The U.S., China and Russia were its most popular markets.
In addition to cognac, the company’s high-end Champagne brands helped boost overall profits although below analysts’ estimates. Champange organic growth was 4.7%. Sales growth of Piper-Heidsieck and Charles Heidsieck (up high single digits), against a background of sustained price increases and an improvement in product mix and markets, compensated for the planned decline in secondary brands.
The Cointreau spirits brand did particularly well in the U.S., although growth in divisional sales were slightly penalized by reductions in transfer prices to Maxxium (the j-v also includes V&S, Beam Global and the Edrington Group.) Liqueurs and spirits grew organically 0.4% overall.
Remy’s partner brands (including California wines, The Famous Grouse and The Macallan) did not fare so well due to several distribution contracts being terminated . Says the company: “The cessation of various distribution contracts since the end of last year - in the US (wines) and in Europe (duty-free in Germany) -accounted for the overall decline in sales in this division. In the US, Scotch whiskies (The Famous Grouse and The Macallan) and Californian wines continued to grow while the initial success of Imperia vodka was encouraging.”
"Sales of the group's own brands increased by 6.9%. This performance, mainly due to cognac and champagne, reinforces the relevance of Remy Cointreau's premium strategy," the company said in a statement.
Cognac grew 12% for the 2007 fiscal year, witnessing its highest increase of the year during the fourth quarter. Remy Martin cognac grew 30% in the fourth quarter with its premium brands showing the most growth. The U.S., China and Russia were its most popular markets.
In addition to cognac, the company’s high-end Champagne brands helped boost overall profits although below analysts’ estimates. Champange organic growth was 4.7%. Sales growth of Piper-Heidsieck and Charles Heidsieck (up high single digits), against a background of sustained price increases and an improvement in product mix and markets, compensated for the planned decline in secondary brands.
The Cointreau spirits brand did particularly well in the U.S., although growth in divisional sales were slightly penalized by reductions in transfer prices to Maxxium (the j-v also includes V&S, Beam Global and the Edrington Group.) Liqueurs and spirits grew organically 0.4% overall.
Remy’s partner brands (including California wines, The Famous Grouse and The Macallan) did not fare so well due to several distribution contracts being terminated . Says the company: “The cessation of various distribution contracts since the end of last year - in the US (wines) and in Europe (duty-free in Germany) -accounted for the overall decline in sales in this division. In the US, Scotch whiskies (The Famous Grouse and The Macallan) and Californian wines continued to grow while the initial success of Imperia vodka was encouraging.”
posted at 2:39 PM
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