FRANCE: Rémy Cointreau Q1 sales slip

 Shrinking demand for Champagne in the economic downturn has seen Rémy Cointreau report net sales down 7.5% for the first three months of its fiscal year.

Champagne sales tumbled by 40% to EUR13.6m (US$19m) for the three months to the end of June, Rémy said today (16 July).

Group net sales for the quarter slipped by 7.5% to EUR138.6m, compared to EUR149.9m in the same period of last year. Sales fell by 14% at constant exchange rates.

Cognac sales fell by 4.5% to EUR63.7m, and by 15% at constant exhange rates with the previous year. Spirits and liqueurs sales fell by 5% to EUR42m.

"The destocking noted in certain major markets continued at the beginning of the quarter," said Rémy, which owns Rémy Martin Cognac and Charles Heidsieck and Piper Heidsieck Champagne.

The period is Rémy's first quarter operating outside of the Maxxium distribution venture, which it left at the end of March.

In Champagne, Rémy said sales reflected "the difficult worldwide trading conditions". It added: "France and global travel retail account for the majority of this, accentuated by the planned reduction in non-branded champagne shipments to the UK."

Rémy Martin Cognac continued to grow in China during the quarter, the group said.

"Rémy Cointreau maintains its premium strategy for the long-term," said the group in its outlook.

"This year, the Group will focus investment on developing its major brands. It is very confident in the effectiveness of its new distribution which, from this year, will enable it to withstand the difficult economic environment affecting some of its markets."