A Ray of Hope for Rémy Cointreau
The global spirits landscape in early 2026 is witnessing a complex interplay of post-pandemic adjustments, shifting consumer demographics, and significant geopolitical headwinds. In this context, Rémy Cointreau’s third-quarter results for the 2025-26 fiscal year, released on January 29, 2026, serve as a crucial indicator for the health of the ultra-premium spirits segment. The French group reported a return to organic sales growth, marking a potential pivot away from the volatility that has characterised the industry since late 2023.
Operational Performance Overview
Rémy Cointreau’s third-quarter results (covering October to December 2025) indicate a substantial sequential recovery, with organic sales rising by 2.8% to reach €245.8 million. This growth follows a sharp double-digit decline in the second quarter, underscoring a turbulent but recovering trajectory for the fiscal year. For the nine-month period ending December 2025, total organic sales dipped by 1.9% to €735.4 million, with reported sales figures reflecting a more pronounced decline of 6.6%, largely due to an unfavourable currency effect of -4.7%.
The quarterly growth was bolstered by a strong performance in the Americas, marking its fourth consecutive quarter of expansion, alongside a return to positive growth for the Europe, Middle East, and Africa (EMEA) region. Although the Asia-Pacific (APAC) region experienced a slight decline, performance in Mainland China remained “almost stable” when adjusted for the Chinese New Year technical calendar effect. From a category perspective, the Cognac division returned to growth with a 3.2% organic increase in the quarter, while Liqueurs & Spirits also grew by 2.8%.
Quarterly Performance Metrics
- Total Sales: Q3 organic growth of +2.8%, 9M organic decline of -1.9%
- Cognac: Q3 organic growth of +3.2%, 9M organic decline of -4.3%
- Liqueurs & Spirits: Q3 organic growth of +2.8%, 9M organic growth of +3.7%
- Partner Brands: Q3 decline of -9.3%, 9M decline of -26.3%
Global Performance and Macroeconomic Context
The global spirits industry is navigating what analysts describe as a “post-pandemic hangover.” Following a surge in at-home consumption and rapid reopening during the 2021-2022 period, the industry’s optimism has been tempered by high inflation and an inventory glut affecting aged spirits, with stockpiles reaching an astonishing $22 billion among the top five global producers. Under these conditions, Rémy Cointreau’s return to growth is notable.
Emphasising a “Value-Driven” approach, the group prioritises high-end positioning and price integrity over volume-led discounting. CFO Luca Marotta highlighted that recent results demonstrate “better resilience of end-market demand” compared to internal sell-in trends, distinguishing between cautious wholesaler stock holding and stabilising consumer depletions.
A Fragmented Global Recovery
The Americas: A Stabilisation Milestone
The Americas have emerged as a stabilising force for the group, achieving its fourth consecutive quarter of organic growth. This recovery is particularly significant, given last year’s heavy destocking among US wholesalers. Improved depletions indicate a healthier equilibrium in distributor inventory levels, particularly for the brands Cointreau and Rémy Martin.
Asia-Pacific: Challenges Amid Change
In the APAC region, the results show a limited decline, though timing around the Chinese New Year significantly impacted quarterly shipments. When adjusted, performance in Mainland China demonstrates stability. Key drivers include:
- E-commerce Dominance: The “Double Eleven” festival produced outstanding direct-to-consumer growth.
- Duty-Free Normalisation: The return of Cognac to the Chinese duty-free market post-disruptions restored volumes.
- High-End Softness: Market conditions remain challenging for high-end products as consumers become more selective.
- Southeast Asia Growth: In contrast, strong sales were observed in Southeast Asia, particularly for Cointreau and St-Rémy.
EMEA: European Resilience
The EMEA region returned to growth, spearheaded by Cointreau and Metaxa in Europe, supported by consumer spending stabilisation following intense promotional periods. In Africa, Rémy Martin VS launched successfully, showcasing potential in emerging markets.
Category and Brand Evolution
Rémy Cointreau’s brand portfolio is traditionally segmented into Cognac, Liqueurs & Spirits, and Partner Brands. Each segment grapples with unique operational pressures.
Cognac: A Revitalisation Effort
Cognac remains the core of the group, contributing approximately 70% of total revenue. Q3 sales rose by 3.2% on an organic basis, a recovery from previous declines. The company aims to revitalise the category to restore volume and absorb fixed costs.
Liqueurs & Spirits: Solid Recovery
This division has emerged as a resilient growth engine, with 85% of its portfolio now back on a growth trajectory. Brands like Cointreau and The Botanist remain strong players, benefiting from the cocktail culture trend.
Partner Brands: Strategic Shift
The Partner Brands division faced a steep decline of 26.3% in the first nine months, a reflection of strategic rationalisation to phase out lower-margin contracts and focus on higher-margin house brands.
The Transformation Plan
Under CEO Franck Marilly’s leadership, Rémy Cointreau has embarked on a transformative plan aimed at redefining its operational approach. This plan, which includes an in-depth diagnostic phase, is expected to identify value-creation strategies for fiscal year 2026-27.
Five Key Transformation Pillars
- Organisational Agility
- Commercial Rebalancing
- Brand Expression Refocus
- Value-Driven Strategy
- Investment Model Reevaluation
Conclusion
Rémy Cointreau’s results, indicating a 2.8% growth in Q3, offer a glimmer of hope for the spirits industry. However, as Chairwoman Marie-Amélie de Leusse stated, “This progress is clearly not enough… we remain far from where we need to be.” The next twelve months will be vital for executing the transformation plan, aiming for ambitious targets through strategic rebalancing and a sharp focus on value-driven growth.
FAQ
What are the key drivers of Rémy Cointreau’s recent growth?
Key drivers include strong performances in the Americas, stability in Mainland China, and recovery in the Cognac and Liqueurs & Spirits divisions.
How has the COVID-19 pandemic affected the spirits market?
The pandemic led to a surge in at-home consumption, followed by a sharp downturn due to high inflation and inventory gluts in the industry.
What is the significance of Rémy Cointreau’s transformation plan?
The plan is aimed at improving organisational agility, commercial resource allocation, and enhancing brand expression to adapt to changing market dynamics.
What challenges does the spirits industry currently face?
Challenges include high levels of unsold inventory, competitive pricing pressures, and changing consumer preferences impacting sales strategies.
How does Rémy Cointreau’s performance influence other luxury spirits brands?
The group’s performance acts as a leading indicator for the industry, with its results providing positive signals for peers facing similar inventory challenges.
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