Rémy Cointreau’s second-quarter sales fell 11% organically to €281.9 million, the group said in its latest sales release, erasing a 5.7% Q1 gain and dragging first-half revenue 4.2% lower to €489.6 million. The French group pinned the slump on tougher conditions in China Mainland, a late Mid-Autumn Festival, and ongoing travel-retail disruptions—prompting a sharp downgrade to its full-year guidance: organic sales now seen flat to low-single-digit (previously mid-single-digit), with operating profit expected to decline low-double to mid-teens (previously mid-single-digit). Currency swings, largely from the US dollar and Chinese renminbi, shaved another 4.1% off reported sales.
Cognac, the engine driving 61% of group revenue, took the hardest hit. The category dropped 13.5% organically in Q2 and 7.6% over the half to €300.2 million—17.4% below H1 2019-20 levels. APAC sales plunged 14.8%, reflecting China Mainland’s deeper slowdown and calendar quirks that delayed key gifting moments. Travel retail remained a weak link, while high-end demand softened across the board. The Americas bucked the trend with a 12.8% Q2 rise, fueled by easy comparables and improving depletions—Rémy Martin’s second straight quarter of growth there. EMEA slipped 9.2%, caught in fierce promotional wars and cautious consumer mood.
Signs of life are emerging elsewhere. The September rollout of Rémy Martin VS in South Africa and Nigeria has met encouraging early response, hinting at untapped potential in Africa’s growing premium segment.
Liqueurs & Spirits proved more durable. Despite a 5.3% Q2 decline to €100.3 million, the division grew 4.1% over the half to €182.7 million—up 43.7% versus H1 2019-20. Cointreau rode strong U.S. cocktail momentum with its new ready-to-serve Citrus Spritz and targeted campaigns, while The Botanist gin held steady. In EMEA, Metaxa and Mount Gay kept robust pace, helping Cointreau gain share amid heavy discounting. Bruichladdich single malt was a rare APAC bright spot, driven by craft appeal.
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Partner brands cratered 28.7% in Q2, with the group offering no further detail on the segment.
Rémy remains defiant, vowing to “maintain sustained investments in China Mainland and the United States” to support recovery. Currency headwinds are expected to weigh heavier than before, with sales facing a €50-60 million hit and operating profit €25-30 million (versus prior €15-20 million estimates).
For the spirits trade, the takeaway is clear: China Mainland’s premium-spirits engine has stalled, pulling Cognac down with it. Yet cocktail bases and emerging markets offer ballast. As inventories slowly clear in the U.S. and new formats gain traction, Rémy’s results map a path through the storm—one rooted in patience, diversification, and a bet on long-term demand.
