Americans quaffing premium cognac at home boost Rémy Cointreau sales in second quarter
Rémy Cointreau saw sales improve in the second quarter as Americans drinking at home due to Covid-19 opted to sip premium cognac.
The Paris-based company- maker of Remy Martin cognac and Cointreau liqueur - also benefited from rising consumption in China.
Both saw double-digit sales growth in the second quarter, with Remy Martin cognac and Scottish single malt whiskies in strong demand.
The brand cited “impressive uptrading consumption patterns, strong appetite for legacy brands, buoyant at-home cocktail trends and robust e-retail,” for the US growth.
Overall sales in the second quarter were down just 4% on last year, but RCG said on Tuesday that it still expects its core operating profits to be down as much as 30% over the first half on a like-for-like basis, compared with a drop of 35-40% forecast in July.
The company had seen sales plunge by 33.2% in the first quarter as worldwide lockdowns hit, and travel retail revenue dropped.
Second-quarter sales reached €280.8 million (£255.5 million), down 4% at constant exchange rates and excluding the effect of acquisitions or disposals.
The group said that it “remains confident of its ability to emerge stronger from the crisis”.
The report read: “Despite persistent low visibility, the Group confirms that the second half of 2020/21 should continue to benefit from a strong recovery buoyed by the United States and Mainland China.”
In a note, Jefferies analysts said "the worst appears to be behind" the brand.
They added: “Whilst positive sentiment around recovery in China and strong U.S off-trade will likely dominate the narrative, we see much of the good news both in the near term and longer term priced in."
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