Bottles of Remy Martin VSOP cognac, Remy Martin XO cognac and St-Remy XO Brandy are displayed at the Remy Cointreau SA headquarters in Paris, France, January 21, 2019. REUTERS
April 8 (Reuters) – Remy Cointreau launched a transformation plan on Wednesday in a bid to revive the spirits maker’s profitability and growth, which will include a new leadership structure and changes to pricing, distribution and procurement.
The French maker of Remy Martin cognac and Cointreau liqueur has been facing a sector-wide downturn and the impact of tariffs in its two biggest markets, the U.S. and China. It said in January it had returned to quarterly sales growth for the first time since 2023.
Its shares are trading near 16-year lows after dropping by more than 82% from their November 2021 peak.
“After three years marked by a complex environment, it is time for Remy Cointreau to stand out within its industry,” group CEO Franck Marilly said in a statement.
The plan, labelled RC Forward, aims to hedge against macroeconomic cycles through stronger distribution networks, revenue management, optimisation of investments and procurement, and a leaner organisation, the company said.
Remy said it would report initial progress and more details on the three-year plan alongside its annual results in June, with new medium-term targets set to be announced in November.
As part of the plan, the group has set up a steering committee within its executive board. It appointed finance chief Luca Marotta as deputy CEO and head of investor relations Celia d’Everlange as chief transformation officer overseeing prestige brands Louis XIII, Telmont and Maison Psyché.
Shares of the company rose more than 3% in early Wednesday trading, matching the overall positive market trend.
Reporting by Alessandro Parodi in Gdansk, editing by Milla Nissi-Prussak
