Rémy Cointreau's cognac rebounds even as liqueurs slip

Rémy Cointreau reported first-quarter sales of €223.2 million, up 1.3% on an organic basis. Cognac drove the growth, marking a turn for a category that has struggled with oversupply and weak Chinese and American demand for much of the past two years. The company's liqueurs and spirits division, which includes Cointreau itself, declined over the same period.

The divergence within the group's own portfolio illustrates how uneven the recovery in premium spirits remains. Cognac's rebound appears to reflect easing destocking in key markets rather than a broad-based surge in consumer demand, and it echoes similar signals from LVMH's Moët Hennessy division, which also flagged a Cognac recovery in its first-half results. That two major players are pointing to the same category inflection at the same time suggests the worst of the correction may be behind the sector.

The weakness in liqueurs and spirits is a reminder that Rémy Cointreau's fortunes remain heavily skewed to Cognac, a concentration that has made the group more volatile than diversified rivals through the downturn. Investors will be watching whether the Cognac recovery broadens and strengthens through the rest of the year, and whether Rémy Cointreau can stabilise its liqueurs business, which has lagged the group's core spirit for several quarters.

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