Remy Cointreau reports total sales of €814 million, or $898.3 million USD in the first nine months of its fiscal year. That’s a 4.1% decline. But it noted that sales of Group Brands 1.6% even as Partner Brands’ sales plunged 67.5% after the company withdrew from a few distribution contracts in the U.S. and Europe.
Factoring in a 2.4% gain from foreign exchange, Remy said on an organic basis Group Brands eased 1% during the first nine months vs. a gain of 10.3% a year earlier.
“Strong momentum in China was offset by a number of cyclical factors, such as a decline in tourism in Hong Kong, slow stock replenishment in the U.S. and changes in the group;s distribution network, mainly in Western Europe.
The House of Remy Martin was down 1.6% vs. 12.1% gain a year earlier and the Liqueurs & Spirits division was up 0.7%. These figures mask excellent performance by Cointreau in the U.S. as well as strong global trends of The Botanist and the Group’s portfolio of Single Malt Whiskies.
The House of Cointreau delivered a strong performance over the nine months thanks to continued strong momentum in the U.S. and China. The company cited change of distributors in Central Europe and Germany to explain why sales for the House of Metaxas declined. Sales for St-Remy slowed over the period, but “the full-year outlook remains positive, thanks to successful brand marketing activities in the U.S.
With Mount Gay Rum planning a relaunch next quarter, sales of Mount Gay slowed. The Botanist continued to enjoy double-digit growth over the period, buoyed by expansion in the U.S. and Asia, and the Whisky division benefited from worldwide growth in single malts.