Remy Martin has just announced negotiating the majority acquisition of Cognac Larsen.
Cognac Larsen founded in 1926, is one of the last 100% family owned cognac house controlling the full process of cognac production and is located in downtown Cognac city.
Remy Martin has already sold 202,3 millions euros from Jan-to-July 2012 which accounts for 62% of the Remy Cointreau Group sales during this period.
Société Générale Bank re-evaluated down their valuation of the stock market shares of Remy Cointreau from 93 to 79 euros. The reason is a reduced growth this trimester (+5.3%) compared to +24.4% from the previous trimester. Although they anticipate the growth to continue they do not know how much growth prospects will continue to be generated by Asian markets.
It may appear that Remy Martin is trying to access another stock of cognac and/or perhaps diversify its brand portfolio. Let's hope it is not the disappearance of another smaller house as we want to keep cognac alive in its many different forms. Diversity is key to avoid standardization and boredom.
- Cognac Larsen Remy Cointreau Negotiation
Source: Bourse Le Figaro
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