Rémy Cointreau posted a +8.9% reported rise in net sales to €1,050.7 million during the 2015/16 financial year, the French Cognac-to-Champagne house revealed today.
In organic terms, growth was positive (+1.7% for group brands and +0.3% overall), despite “technical factors” related to the implementation of a strategy “to move upmarket”. That strategy involved streamlining the group portfolio at the expense of low-end products, adaptation of the distribution network and the expiration of distribution agreements with partner brands.
Notably, the fourth quarter saw strong growth (+9.8% in organic terms), on the back of improving trends in Greater China.
In the full year, Europe, Middle East and Africa (EMEA) posted solid growth, led by the group expansion strategy in Africa. The Americas saw “outstanding trends” in group brands, driven by favourable market conditions in brown spirits, especially in the USA. Asia Pacific countries reported “significant growth” in the second half of the year.
The group noted the impact of the Russian economic and political crisis on travel retail and domestic sales of Metaxa, which fell during the year. The Greek brandy is traditionally popular with Russian travellers.
With annual net sales in line with its forecasts, Rémy Cointreau confirmed its objective to deliver positive growth in current operating profit for the 2015/16 financial year, at constant exchange rates and scope.
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