SALES FROM REMY COINTREAU SHOW GROWTH

Remy Cointreau

After a strong third quarter, Rémy Cointreau’s sales were up by nearly 5% (and 6% on an organic basis) over the first nine months of its fiscal year. The company’s organic sales rose by 9% in the third quarter (ending December 31, 2016), as high-single digit growth in the U.S. market combined with a double-digit advance in China to produce significant progress.

Rémy’s third-quarter sales bump more than doubled analysts’ projections. Flagship brand Rémy Martin was the company’s growth engine over the first three quarters of its fiscal year. 

The Cognac brand’s sales grew by 11.2% on an organic basis. Meanwhile, in China, the brand’s depletions were up by high-single digits, in part because of the earlier Chinese New Year. Beyond Rémy Martin, Rémy Cointreau’s liqueurs & spirits unit (led by Cointreau) grew by 4.1% over the first three quarters, while its partner brands business fell by 15%, mostly due to the end of distribution contracts for Piper Heidsieck and Charles Heidsieck in several key markets.

Source: Shanken Daily News

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THE NEW AD CAMPAIGN FOR REMY MARTIN V EAU-DE-VIE

On 1st of June 2014, Rémy Cointreau USA is launching a new ad campaign called 'V Fabulous' for its Rémy Martin V, i.e., the eau-de-vie model which is an unaged product that if aged it would be called cognac.

Remy Martin V, unaged grape spirit

It will include print, digital and out-of-home executions on the national and local level along with radio and television spots. Rémy launched V in 2012 in the USA only. It retails at $40, and it is making inroads as a trade-up opportunity within the ultra-premium white spirits category. Kind of Ciroc for the Riches!

SPECULATION OF COGNAC REMY MARTIN BEING ACQUIRED BY BROWN-FORMAN

Rémy Cointreau's shares have fallen by around 40% over the past year because of a slowdown in China's economy. China is an important market for Rémy Cointreau because of the amount of business they do with Rémy Martin in Asia. 

Prior to this slow down, China had accounted for around one-third of Rémy’s turnover. In the first nine months of the company’s fiscal year (ended December 31, 2013), overall sales declined by 12.3% to €964.5 million ($1.325b).

However, today Rémy Cointreau’s share price jumped on rumors that Brown-Forman was considering a bid for the French drinks group.

Brown-Forman and Remy-Cointreau

After financial blog Betaville reported on 3rd April that Brown-Forman has been working with several advisers, including Goldman Sachs, Societe Generale, Lazard Bank etc. on a potential acquisition of Rémy, and that “tentative discussions have been held between investment banking advisers to both companies,” Rémy shares rose by as much as 11% on the Euronext Paris Exchange—to more than €65 ($89)—in this morning’s early trading. By mid-day in Paris, Rémy’s share price surge had cooled, but, at around €62 ($85), they were still nearly 5% above yesterday’s closing.

Rémy Cointreau is a family-controlled company, with the Heriard-Dubreuil family holding majority ownership. Over the years, the Heriard-Dubreuils have steadfastly refused to sell, even as Rémy has at times endured more difficult conditions than it does currently, and I doubt the Heriard-Dubreuil will sell.

Brown-Forman is also a family business with 70% controlled by the Brown family in Kentucky. Jack Daniel's is by far its most famous brand (Tennessee whiskey).

Cognac makes up 80 percent of Remy Cointreau's operating profit and China 50% of it. Jack Daniel's make 50% of Brown-Forman profits.

This would be a major deal in the cognac market. I wonder if this is a 'hoax' as it is being reported by Reuters or Bloomberg also as a 'rumor' and 'speculation'.

Diageo, Pernod Ricard or Bacardi may want to get in the game too.

Sources: http://www.shankennewsdaily.com, http://www.reuters.com, http://www.bloomberg.com

REMY COINTREAU IS POSTING VERY POSITIVE RESULTS

Remy Cointreau Logo

Rémy Cointreau has posted a healthy jump in year-to-date sales as Cognac sales remained strong despite the later Chinese New Year.

Total sales rose by 17.5% to $1.29bn US in the nine months to the end of December, with Rémy's own brands up by 20.6%. Sales of its Rémy Martin brands increased by 12.4% in the same period, as super-premium Cognac in Asia continued to grow.

Cognac sales in the US were also buoyant while Rémy's liquor and spirits posted “strong gains” in the country.

The results build on already strong comparisons from the same period last year when Cognac sales grew 18% up. Net sales in 1st quarter were up by 13.30% compared to 2012 first quarter.

Sales in Europe remained buoyed by Russia and increased, together with some Western European countries.

Today's results included a full quarter of sales of Bruichladdich, which Remy Martin purchased in 2012 for approximately $90 million US.

To read Remy's official statement, click here.

REMY COINTREAU IS NEGOTIATING TO ACQUIRE THE MAJORITY OF COGNAC LARSEN

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