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Rémy Cointreau sees drink sales rise by 105%

By Dan Moore

13:03, 22 July 2021

A bottle and glass of Rémy Martin cognac
Cognac specialist Rémy Cointreau has reported a year-on-year growth in sales

French drinks maker Rémy Cointreau has reported sales of €293m (£251m) in the first quarter of 2021, a 105% rise on the same period last year.

While 2020's first-quarter results were skewed by COVID, the latest figures are up almost 37% on Q1 2019.

Strong performances in the US and mainland China markets were the driving force behind the results, along with improvements in trade lines to Europe, the Middle East and Africa as COVID restrictions eased.

Cognac sales rocket

Sales were up in all Rémy Cointreau divisions, but none more so than in Cognac, where growth of 114% to €199.6m was recorded on a constant currency basis.

The company put the hike in sales down to the pandemic, which had resulted in a high degree of home consumption with bars and restaurants closed. It also pointed to the phasing effects of shipments as international freight movements increased.

During the period, key brand Rémy Martin launched its 'Team Up for Excellence' campaign in the USA, which boosted sales through a sustained social media presence. The campaign, which features actor and singer Usher, won an award at the International Creativity Festival in Cannes.

Other spirits and liqueurs, including signature brand Cointreau, saw sales rise by just over 90% to €85.3m. The development of its stable of whiskies and the popularity of The Botanist brand of gin helped fuel demand.

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Outlook

In a statement on its prospects for the full year, the French producer said: “For 2021-22 Rémy Cointreau remains confident in its ability to outperform the exceptional spirits sector.

"The group expects an excellent first half, underpinned by very favourable comparatives and shipment phasing effects as well as new and structurally more buoyant consumption trends in the United States.

“Being ahead in the unfolding of its 2030 strategic plan and given the favourable environment, the group has decided to significantly increase its communication investments. The aim will be to support its brands in the rebound and increase their medium-term growth potential by developing their awareness and attractiveness.

“Expected good growth in current operating profit will also be tempered by adverse currency effects at between minus €16m and minus €20m and a scope effect estimated at minus €2m.”

Trade Remy Cointreau SA – RCO CFD

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