2010-2011 Strong annual performance
Control of markets and moving upmarket
"A year after the complete restructuring of our worldwide distribution network, this new financial year was characterised by an acceleration in growth, particularly in Asia and in Travel Retail, the consolidation of the distribution network and the continued greater inclusion of the consumer at the heart of our organisation.
“In this climate of economic recovery, particularly in our historic markets, our strategy has been an important asset in supporting growth. The appropriate distribution of our activities, between traditional and emerging markets, has enabled us to achieve satisfactory and profitable growth, with a perceptible acceleration in China, Vietnam, Russia and also throughout Travel Retail.
“At the same time, we continued to roll out our sales teams dedicated to the prestigious on-trade in our strategic markets, particularly in the US, Singapore and France. Our organisation was strengthened in Russia by a reinforced business partnership with our distributor and in Japan through the creation of a new distribution subsidiary. In addition, we continued to invest in new emerging markets, such as Brazil and India, where we have increased our exposure considerably.
“Our drive to always be closer to the field, in direct contact with each market and as close as possible to ever more demanding consumers, motivates our teams to act and respond to their expectations. All these developments open up very positive prospects in the long-term for our high-end products and our international brands.”
Damien Lafaurie
Executive Vice President Global Markets
Asia-Pacific
Sustained growth for all brands
In Asia, Rémy Cointreau continues to experience a sustained rhythm of growth. In China, the strengthening of our sales teams has encouraged the development of Rémy Martin’s premium cognacs. Two years after its launch, 1898 has become the cognac of choice for all consumers in search of exceptional taste sensations. Our Chinese teams won over the most well-known establishments, city by city. Now available in over 60 major cities, our brands, and Rémy Martin in particular, benefit from optimum exposure.
In conquering new countries, the Group successfully increased its presence in the main regions of South-East Asia. In Vietnam, Singapore and Taiwan, magnificent hotel complexes are showcases of choice where Rémy Martin, Cointreau and Piper-Heidsieck have strong exposure.
In Japan, the creation of a new distribution subsidiary, dedicated to marketing the Group’s brands, means that the Group can respond to the unique challenges of the Japanese market, which has suffered greatly in the past months, but which remains strategic in the long-term: Louis XIII dominates the ultra-premium segment, Cointreau and Passoã feature among the leading imported liqueurs and Piper-Heidsieck is one of the undisputed leaders in its category.
Across all these major markets, the sales and marketing teams, on which the performance of the Group is dependent, demonstrated their effectiveness in responding to changes in the markets and new consumption patterns.
United States - Americas
A valuation stance that delivers
Rémy Martin’s determined and ambitious value strategy has enabled the brands to benefit from the slow but certain economic recovery. The desire to maintain high prices, despite the crisis, is consistent with the promise of authenticity and the unique character of our brands. Significant innovation and promotional investment have been established to support this value strategy. Despite the still fragile economic climate, this choice has proved appropriate and successful, as the premium sector has seen the strongest growth. The superior qualities of Rémy Martin and Cointreau have been sustained by the important valuation work carried out in the on-trade. This part of the market, which has the ability to develop high-end brands, is undisputed in the US drinks sector. In this vital market, Rémy Martin ended the year very optimistically, having ridden out the crisis without sacrificing its future.
In the Caribbean, particularly Barbados, the launch of the new Silver quality Mount Gay Rum was a formidable success. This spectacular recovery bears testimony to the new marketing dynamics of Mount Gay in its local market.
In Mexico, the St-Rémy brandy packaging, which creates an image of the superior quality of French brandy, made up for the increase in its retail price. In Brazil, Cointreau’s popularity accelerated with double-digit growth despite its very high price in that country. Distribution agreements signed with La Negrita in Mexico and Campari in Brazil enabled the Group’s brands to benefit from the existing marketing teams.
Europe
A profitable recovery
This year, Europe was supported by Russia and also by Western Europe.
In Russia, groundwork was initiated with our Russian partner Roust: to integrate the Rémy Cointreau teams within local and traditional teams, particularly in the on-trade. This strong partnership originated in Moscow and St Petersburg, where Rémy Martin and Cointreau gained market share and exposure.
In Eastern Europe, recovery was confirmed by the end of the year in the Czech Republic and in Slovakia, where the Group has its own distribution network, including that of Metaxa for which these countries are strategic. In Poland and in the Baltic countries, communications targeting on-trade consumers generated growth once again. Greece continued to experience a difficult economic situation for the second consecutive year.
In Western Europe, in a flat market overall, the Group’s brands performed strongly, particularly in the UK and Germany as well as in France. The work on brand valuation and innovation bore fruit with renewed success in the on-trade for Cointreau, Rémy Martin and Champagne, as well as in the off-trade for Piper-Heidsieck, which took the lead once again in Belgium.
Travel Retail
A window on the world
The travel retail market, the largest showcase in the world, has again seen a spectacular comeback this year. Demand remained very strong, driven by the increase in tourism and business travel.
The Travel Retail team, based in Singapore, covers the entire world with local teams for each market.
Rémy Martin, Cointreau and Piper-Heidsieck again saw growth this year with gains in market share. This was a sign of how appropriate the brand strategy is in meeting the expectations of the very demanding consumers who pass through major airports all over the world, such as Hong Kong, Singapore, London and Paris. These consumers find high-quality products in specific environments: Louis XIII has pride of place in luxurious areas and lifestyles where the “happy few” gather. Again this year, the quality of the marketing displays was further enhanced and provided even greater exposure to all Rémy Cointreau’s international brands. With these efforts, Rémy Martin has become once again the leader in value in this important market.