Berenberg‘s beverage analysts are warning the latest shipment data from the Bureau National Interprofessionnel du Cognac indicate high-end cognac shipments to Asia fell almost 21%.
Drilling down, Berenberg says volumes declined by 19% yoy in the high-end QV category and by 24% in VSOP in November 2019. In contrast, VS, the lowest-priced category, achieved a 2.3% yoy volume increase in November.
As a result, Berenberg downgraded its forecasts for Remy Cointreau to show sales declining 4.6% from last year, and it expects Remy’s organic operating profit to decline 4.2% year over year.