Slower Cognac Sales Slam Remy Cointreau

by Deidre Woollard (RSS feed)
Apr 16th 2009 at 6:05PM

Sales of champagne have been falling across the board but it was the combination of both champagne and cognac that led to decreased sales at Remy Cointreau. The Paris-based distiller has released earnings which show that sales fell 13 percent for the year ending March 31. The company made 714 million euros versus 817.8 million euros last year. The champagne division of the company which includes the Piper-Heidsieck label saw sales fall 12 percent. But the company saw its biggest division, cognac, take a 14 percent dip. One of the few bright spots was Mount Gay rum which has increased its share in the U.S.

The company said that the economic slump, especially in the U.S. and Russia was to blame for the decline. So far the company's stock has lost 33 percent of its value in 2009 and had a 39.5 percent decline in 2008.

Remy Cointreau has decided to act as its own distributor instead of relying on the distribution network Maxxium. An article in Forbes declares that this may be a risky move for the small collection of brands especially since it pitches mainly to the premium market whereas larger companies like Pernod Ricard and Diageo have a wider range of brands.

Filed under: Spirits