A STRATEGIC move into the premium end of the spirits market has enabled Rémy Cointreau to push annual sales through the €1 billion mark, with its Bruichladdich business reporting steady growth.
The firm’s Islay spirit business, which includes Bruichladdich, Port Charlotte, Octomore whiskies and The Botanist gin saw double digit percentage growth driven by new account listings in the UK, US, Japan, Germany, Belgium and in travel retail.
A spokesperson for Bruichladdich said: “We’re seeing steady growth where we want to build our brands. We’re continuing to develop our range, with a focus on production and high provenance releases, which helps develop our distribution.”
The company reported 8.9 per cent overall growth for the year to March, with its flagship Rémy Martin Cognac generating growth of 14.7 per cent to €650m. Its liqueurs and spirits division posted sales €273.7m.
Sales growth was driven by a strong performance in EMEA, which included triple digit growth in Africa and double digit growth in central Europe. Overall sales in its western Europe heartland were “slightly positive”.
American sales were up one per cent and in Asia, sales were down nine per cent over the year, but organic growth of 9.8 per cent was reported in Q4, driven by “clear improvements” in China, where the company, along with other high-end brand owners, has suffered since a 2013 Government ban on luxury gifts for officials.
The company reported gradually improving consumer trends across a number of territories, and said it had confirmed its operating profit growth outlook for the year. However, an ongoing weakness in Russia and deteriorating trends in travel retail prevented that profit from being higher. It added that streamlining its portfolio and changes to its distribution network as part of its repositioning had also had an adverse effect on sales.
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