Rémy Cointreau annual sales fall sharply amid weak demand in China and United States

Rémy Cointreau, the French spirits group known for its premium cognac brands, reported a significant drop in annual sales for its 2024-2025 fiscal year. The company announced on Wednesday that revenue fell to 984.6 million euros, marking a 17.5% decrease compared to the previous year. This decline was attributed to challenging market conditions in China and a slowdown in sales in the United States.

The group’s performance is closely tied to the success of its cognac business, which accounts for about two-thirds of its total revenue. For the fiscal year ending in March, cognac sales dropped by 21.4%. The fourth quarter saw an even steeper decline, with sales down 30.8% compared to the same period last year.

In the Americas, Rémy Cointreau experienced a 20.2% decrease in sales. The company cited ongoing efforts by distributors and retailers to reduce inventory levels amid weaker consumer demand. Despite these challenges, Rémy Cointreau noted some improvement in the fourth quarter, with a strong rebound in sales growth.

The Asia-Pacific region also faced difficulties, with sales falling by 18.2%. The decline was most pronounced in China, where several factors contributed to the downturn. These included an exceptionally high comparison base from the previous year, restricted access to Chinese duty-free channels due to a suspension on cognac sales at airports, and generally tough market conditions.

Both China and the United States have recently imposed or threatened new tariffs on imported spirits, further complicating Rémy Cointreau’s outlook. Since October, China has applied provisional additional tariffs of 38.1% on imported cognac as part of an ongoing trade dispute with the European Union. The company stated that if these tariffs become permanent, it will implement measures to mitigate their impact starting in the next fiscal year. For now, Rémy Cointreau expects only a marginal effect on its current results.

In response to these challenges in China, Rémy Martin, the group’s flagship cognac house and subsidiary of Rémy Cointreau, has placed several hundred employees on partial unemployment for one week each month through June. This measure aims to adjust production levels amid reduced demand linked to the trade conflict.

In the United States, potential new tariffs could further affect Rémy Cointreau’s business if implemented by former President Donald Trump should he return to office. The company estimates that such tariffs would add 20% duties on products from the European Union, 10% from the United Kingdom, and another 10% from Barbados.

Rémy Cointreau’s latest results reflect broader pressures facing global spirits producers as they navigate shifting consumer trends and rising trade barriers in key markets. The company remains focused on adapting its strategy to manage these headwinds while seeking opportunities for recovery and growth in future quarters.