Rémy Cointreau (RC) announced its financial results for its fiscal year ended March 31, 2017 this week. Overall revenues the the spirits conglomerate were up about 4% while net profits were up over 20%. RC is the owner of Rémy Martin Cognacs, Cointreau, Metaxa, Mount Gay Rum, St. Rémy French brandy and Progressive Hebridean Distillers.
Rémy Martin cognacs were the star performer of RC in fiscal year 2017. Sales of Rémy Martin Cognacs were up 10% in fiscal year 2017 to €707.5. The exception performance of Rémy Martin Cognacs was due to an increased focus on higher-end Cognacs. Rémy Martin’s Cognacs are crafted from eaux-de-vie from the two finest growing crus in the Cognac region- Petit and Grand Champagne. As such, Rémy Martin produces very small amounts young V.S. Cognac, choosing instead to age its Petit and Grand Champagne eaux-de-vie much longer in order to craft pricier Rémy V.S.O.P, 1738 Accord Royal, X.0. Excellence and Louis XIII Cognacs.
Rémy Martin’s high-end strategy paid off in 2017 as sales increased and profits increased even more. Sales of Rémy Martin cognacs were strongest in the Americas taking in 44% of overall sales, the Asia Pacific Region accounting for 39% and Europe/Middle East and African 17%. Cognac sales in China in recent years had fallen off as the country cracked down on conspicuous consumption. Rémy Cointreau noted, however, that the situation appears to be changing as its Chinese sales picked up sharply in the second half of the year.
Marketing Initiative Drive Rémy Martin sales
RC noted that in fiscal 2017 Rémy Martin sales benefited from the introduction of a limited edition Carte Blanche à Baptiste Loiseau cognac, a new Rémy Martin XO Excellence decanter, a Rémy Martin pop-up store at Paris Charles de Gaulle Airport, a Louis XIII Pop-up boutique at Harrod’s in London, a LOUIS XIII boutique in Beijing and sales of Louis XIII minature – a 50ml bottle intended to bring the classic cognac to the masses at around $700.
Rémy Cointreau also rebranded the company in fiscal year 2017, with the tag line – “Terroir, People and Time”.
Rémy Cointreau projects that in fiscal year 2017-18 “Due to its unique business model and its portfolio of exceptional spirits, the Rémy Cointreau Group pursues its long-term strategy of focusing on its high-end products, founded on the excellence of terroirs, the mastery of savoir-faire and the importance of time for 2017-18, Rémy Cointreau anticipates growth in Current Operating Profit, at constant exchange rates and scope.