Strategy

An unchanged ambition:
to become the global leader in exceptional spirits.

AN UNCHANGED AMBITION

TO BECOME THE GLOBAL LEADER IN EXCEPTIONAL SPIRITS

Over the past 15 years, the implementation of this strategy has led the Group to sell brands and other assets deemed less suited to its value creation strategy and to take full control of its distribution in key markets (exit from Maxxium in April 2009).

Since 2015, the Group has accelerated its strategy of moving upmarket so as to differentiate itself and emphasise its uniqueness: ultimately, the Group’s ambition is to become the world leader in exceptional spirits.

Levers of our value strategy
2023/24 outlook
2029/30 objectives confirmed
Distribution network
News, trends and focus by market

Bouteille Mount Gay dans des feuilles de plamier

The four strategic levers

ENHANCING THE VALUE PER CASE OF OUR SPIRITS

The “portfolio strategy” consists in assigning a role to each Group Brand to maximise the value per case and gross margin of the Group. The priority for the most profitable brands will thus be to step-up their growth (driven by increased investments), while the less profitable will have profitability improvement targets (by gradually refocusing them on their high-end products).

By increasing its gross margin, the Group will expand its investment capacity behind its priority brands, thus creating a virtuous circle of more sustainable and profitable growth.

The four strategic levers

MOVING FROM A “CLIENT-CENTRIC CULTURE” TO A “CLIENT-CENTRIC BUSINESS MODEL”

During the past five financial years, the Group has implemented an end-client-centric culture by establishing direct and personalised relationships through human, media and digital investments to enhance brand appeal.

The Group is now seeking to move on to the next step by implementing a genuine client-centric business model. This should translate into a significant increase in the Group’s direct sales, whether through digital, own stores or its network of “Private Client Directors”. To do this, it must implement or strengthen the tools that will enable it to communicate with, educate, retain and sell directly to its clients.

The four strategic levers

ACCELERATING THE DEVELOPMENT OF THE LIQUEURS AND SPIRITS PRIORITY BRANDS

The Liqueurs and Spirits portfolio still offers significant growth prospects in its respective markets, particularly in terms of retail penetration.

Some brands have accordingly been identified as priorities to contribute to the Group’s profitable growth. The expected mix and scale effects should gradually result in an improvement of the division’s profitability, despite reinvestments in brand communication and education.

The four strategic levers

THE “SUSTAINABLE EXCEPTION” PLAN FOR MORE RESPONSIBLE GROWTH

After having defined its values (Terroirs, People, Time and Exception) in 2016, the Group is now seeking to reflect them through a responsible growth plan. The key features of the “Sustainable Exception” plan are ecological agriculture in all terroirs involved in crafting the Group’s spirits, the use of renewable energies for production sites, eco-design for all brand packaging and a gradual reduction in carbon emissions aligned with the international ambition of “Net Zero Carbon” by 2050.

Moreover, as a family-owned Group, Rémy Cointreau is a people-centric company, which deeply respects the Women and the Men that comprise it and who, through their savoir-faire and commitment, contribute to the success of the Group and its strategy. The Group’s ambition is to become more inclusive, particularly in terms of women, while promoting diversity.

Lastly, thanks to its positioning in the exceptional spirits market, the Group is fully aware of its duty to set an example regarding responsible consumption. Accordingly, the Group promotes occasional consumption to celebrate exceptional moments, with moderation.

2023/24 OUTLOOK

Since the announcement of its 2030 strategic plan in June 2020, Rémy Cointreau has made significant progress in the implementation of its four strategic priorities, enabling it to be ahead of the objectives set.

In 2023/24, Rémy Cointreau anticipates a continued strong normalization of consumption in the United States, at a level that will nonetheless remain significantly higher than in 2019/20.

At the same time, the Group expects strong growth in the rest of the world, led by major gains in China, a very good showing in EMEA and the Rest of Asia, and business similar to levels observed in 2019/20 in Travel Retail.Against this backdrop, the Group expects sales to remain stable on an organic basis in 2023/24, with:
– A strong sales decline in the first half, reflecting a very strong fall in the United States and high bases for comparison;
– A strong recovery in the second half, driven by a sharp rebound in the US starting in the third quarter.

Rémy Cointreau intends to confirm its level of organic profitability based on:
– Continued roll-out of a value-driven strategy built on a firm pricing policy and improved price mix;
– Resilient gross margin in a persistently inflationary context;
– Stabilization of the ratio of marketing and communication spend/sales;
– Tight control of overhead costs.

The Group estimates that currency will have an unfavorable impact for:
– Sales: between -€50M and -€60M;
– COP: between -€10M€ and -€15M.

2029/30 OBJECTIVES CONFIRMED

In the medium term, Rémy Cointreau is reasserting its ambition to become the world leader in exceptional spirits, with a growth outlook that is still attractive, particularly in a world of more responsible consumption.

For this, Rémy Cointreau intends to pursue its values strategy and the construction of a business model that will deliver both profitable and responsible growth.

A DISTRIBUTION NETWORK,
LOCAL SAVOIR-FAIRE,
INTERNATIONAL PRESENCE

EMEA REGION

AMERICAS REGION

APAC REGION

Group administrative sites

Glasgow
London
Paris

Travel Retail representative offices
Brussels
Geneva
Moscow
Athens
Johannesburg
Amsterdam

Group production sites

Isle of Islay
Angers
Cognac
Col Accarias
Samos

Group administrative sites

New York
Miami

Travel Retail representative offices

Group production sites

Seattle
Barbados

Group administrative sites

Singapore
Kuala Lumpur

Travel Retail representative offices
Hong Kong
Taïwan
Shanghaï
Tokyo

€780

Million in sales (Americas)

50%

of Group sales (Americas)

€259.5

Million in sales (EMEA)

17%

of Group sales (EMEA)

€509

Million in sales (APAC)

33%

of Group sales (APAC)

AMERICAS REGION

News & trend in the Americas

News: Cointreau stands out in US markets

In the United States, while the cognac market is returning to normal after its peak during the pandemic, Cointreau continues to grow.
The brand enjoyed a record year in Mexico, where activity doubled year on year. As for Puerto Rico, it has become the brand’s largest market in the world.

In Mexico City, the opening of the first LOUIS XIII pop-up store in the Americas gave this exceptional brand an exceptional showcase through an effective communication campaign.

In Barbados, Mount Gay grew by 30%, almost returning to its pre-pandemic level.

Trend: Upgrading in Central and Latin America

In the first half of the year, the key countries of Central America and Latin America (Mexico, Brazil, Colombia) continued to follow the trends observed during the pandemic, with a rise in consumption from which the Group’s brands, and Cointreau in particular, benefited.

In the second half of the year, a slight drop in consumption was recorded due to the cost of living, a consequence of the economic context in the countries of the region. Nevertheless, growth remained higher than pre- pandemic levels.

News

Trend

Focus in the Americas

MARGARTIA: THE STAR COCKTAIL IN MEXICO AND PUERTO RICO

In Mexico and Puerto Rico, the strong growth of Cointreau was driven by a new focus on the iconic Margarita cocktail, through a 360° campaign. All channels were activated and Cointreau could be seen in airports – enjoying high footfall -, on billboards or even on self-service bicycles, for maximum visibility.

Staff training was organised and DYO (Do Your Own) sessions were held for customers to perfectly master the cocktail recipe. Finally, a premium Margarita was featured on the menu of a selection of restaurants.

In Puerto Rico, a major week-long activation was organised to celebrate Cinco de Mayo. Throughout the year, more than 20 events (brunches, parties) highlighted Cointreau’s flagship cocktail.

Oranges marquées de l'écriture Cointreau

EMEA REGION

News & Trend
in EMEA

News

Increased market share in Western Europe

In 2022, Western Europe showed good performance with improved market share for Cointreau, driven by the launch of its new bottle: a 1.9% increase in value in France and 8.2% in Spain. Metaxa is also strengthening its position on the Spanish market, where brandies in general are falling sharply.

In Germany and Greece, the rejuvenation and upgrading of Metaxa continues thanks to significant communication investments, notably with the new “Taste the Unexpected” campaign. In France and Germany, the deployment of Bruichladdich and The Botanist is supported by new listings and a reinforced advertising campaign in retail.

Following the pandemic, markets had anticipated a return to normal for the summer season. The increase in annual performance was therefore concentrated in the first quarter. In contrast, in the second half of the year, the onset of the energy crisis and inflation had a negative impact on the retail trade.

Trend

Highlights in the UK

Despite a challenging environment, Rémy Cointreau ended 2022/23 up in value compared to the previous year.

This momentum was punctuated by several brand initiatives, including last March with Bruichladdich and the launch of its “We also make whisky” campaign. In July, the enchanting new LOUIS XIII boutique opened at Harrods.

In August, Mount Gay rum made its comeback as the main sponsor of the prestigious Cowes Classics Week regatta, organised by the Royal London Yacht Club. Finally, in November, the inauguration of Maison Cointreau in the heart of London provided an exceptional opportunity to present the new Cointreau l’Unique bottle.

At the same time, The Botanist and St Rémy Signature were listed at Sainsbury’s, while champagne Telmont gradually increased its selective distribution in retail and the on-trade network.

Focus in EMEA

Focus 1: Rémy Producers Season 2 in South Africa and Dubai

Rémy Producers is launching another season hosted by the South African duo, Major League DJz. This contest for up-and-coming DJs kicked off in South Africa and ended in Dubai with a big end-of-year finale. Screened on TV, social networks and in Rémy Martin points-of-sale, the campaign allowed DJs to try their luck. The ten finalists received a masterclass before hitting the turntables themselves. Thuto the Human won the coveted title of “Remy Producers Winner”. His victory gave him the opportunity to perform in the most prestigious venues in Dubai.

A draw was also organised to win a luxury safari as well as a front row ticket at African Fashion Week.

This operation allowed the brand to continue a close collaboration initiated between two key markets: South Africa and the United Arab Emirates.

Focus 2: Festivals and events in Poland

Activation of Metaxa 5* Tonic was rolled out across three music festivals. Aimed at rejuvenating the brand’s consumer target and installing a new mixology-based strategy, the event reached out to more than 33,000 people between July and September.

Whisky festivals have shown their effectiveness in building lasting relationships and recruiting new customers. At the PHD (Progressive Hebridean Distillers) workshop, visitors enjoyed the specificity and diversity of these unique malt singles. In addition, masterclasses accessible to buyers were organised and led by Polish specialists and ambassadors of the Bruichladdich distillery, to learn to distinguish them and appreciate their specific features. Several thousand bottles of the PHD range (Bruichladdich, Port Charlotte and Octomore) were sold during whisky festivals, visited by nearly 18,000 enthusiasts.

Focus 1

Focus 2

APAC REGION

News & Trend
in APAC

News

Recovery in the Chinese consumer market

2023 looks promising for China with the end of the health crisis and the implementation of measures to boost consumption. People have come back to shopping malls and airports since the Chinese New Year.

In January, Maison Rémy Martin opened its new store at the Haikou International Duty-Free Shopping Complex on the island of Hainan, one of China’s main tourist destinations.

In April, Rémy Cointreau took part in the 3rd China International Consumer Products Expo (CICPE), a major event also taking place in Haikou. This international free trade port has become a major entry point to the Chinese market, especially for luxury goods.

Trend

New post-pandemic consumption scenarios

With the health crisis, online sales and home delivery services expanded in China, thereby changing consumer habits. These circumstances have allowed Rémy Cointreau’s brands to be present in cities where they are not retailed.

Since the end of lockdown, Rémy Cointreau has once again invited enthusiasts to enjoy experiences outside their homes. Bruichladdich pop-up events or the new Rémy Martin Cognac Express pop-up store have been hosted in a dozen or so cities to meet clients. The brand was also strongly present at Shanghai Fashion Week, where it set up cognac tastings.

Finally in February, Rémy Cointreau opened its first sustainable bar in Shanghai, named DENTREE. This bar explores new concepts of sustainability with a menu which, besides the usual suspects, also serves cocktails and snacks with locally sourced organic ingredients. DENTREE is a carbon-neutral model for the bar sector and a further illustration of Rémy Cointreau’s strong commitment to China.

Focus in APAC

Focus 1: LOUIS XIII The Drop pop-up store in Singapore

Last December, LOUIS XIII accompanied the launch of THE DROP through the first immersive retail experience in south-east Asia. The pop-up store opened for 30 days on Orchard Road, Singapore’s famous shopping street. The inauguration brought together many media and opinion leaders.

Immersion in the world of LOUIS XIII THE DROP and discover the art of craftsmanship.

Throughout the month, shoppers were able to immerse themselves in the world of LOUIS XIII THE DROP through interactive augmented reality experiences and art and craft booths giving them the opportunity to customise the bottle and its case. In a separate area, clients could also discover the entire LOUIS XIII range.

Focus 2: Bruichladdich Whisky Festival in Japan

For more than ten days, Rémy Cointreau Japan organised the Bruichladdich whisky festival in April in Tokyo, at the Roppongi Hills complex. The event welcomed more than 7,000 guests, including more than 200 VIPs and media representatives.

Several visitors attended Bruichladdich distillery brand workshops and participated in commented tastings. In addition to the attendance of the festival and the sales it generated, the event significantly increased the number of followers of the local Instagram account of the brand, as well as engagement in other social media channels.

Focus 1

Focus 2

GLOBAL TRAVEL RETAIL

News & Trend
Global Travel Retail

News

Strong recovery in the Americas market

In both North and Latin America, there has been a sharp increase in footfall at airports, almost returning to the 2019/2020 level. It is expected to remain stable for the next three years.

Within the Travel Retail Americas region, the cruise sector experienced the highest growth in 2022/23.

Over the next year, footfall is even expected to exceed pre-pandemic levels.

Trend

Training: the success of blended learning

There has been a sharp increase in recruitment in the Travel Retail sector, particularly in the AMEI region (Africa, Middle East, India), to cope with the increase in the number of passengers and the multiplication of activations. The training of new staff during this period was key to maintaining excellence in retail and customer service. A blended learning strategy was implemented, combining face-to-face training, distance learning and e-learning. The creation of innovative programs and tools has made it possible to introduce new recruits to the Group’s brands, commitments and services.

Focus Global Travel Retail

Focus 1: The Botanist – an exclusive launch

Since October 2022, more than 20 promotional operations have been set up to support the launch of the exclusive product, The Botanist Hebridean Strength, in the Heinemann duty free network.

Newsletters, e-commerce information pages, in-store merchandising and tasting operations activated sales in the second half of the year in several European airports.

Focus 2: Summer 2022 – The arrival of Metaxa in Greek airports

During the summer period, Metaxa developed an omnichannel approach in the main Greek airports: Athens, Thessaloniki, Heraklion, Rhodes and Samos. Through posters, a digital drive-to-store campaign and the launch of the 7* Aegean limited edition, in the summer of 2022 Metaxa embodied the image of Greece for all travellers.

Focus 3: Cointreau at the heart of multi-brand cocktail activations

The World of Cocktails platform brings together the brands of the Group’s portfolio where Cointreau stands out with more than 300 cocktails. This new tool allows brands to customise the promotion of their product according to traveller profiles.

These activations met with tremendous success, with an average 250% increase in sales compared to the non-activation period.

Focus 1

Focus 2

Focus 3

An unchanged ambition: to become the global leader in exceptional spirits.

AMERICAS REGION

EMEA REGION

APAC REGION

GLOBAL TRAVEL RETAIL

An unchanged ambition:
to become the global leader in exceptional spirits.