Confident and committed to the long-term
Dominique Hériard Dubreuil, Chairman of the Board.
Jean-Marie Laborde, Chief Executive Officer.
The year ended 31 March 2010 was marked by a decisive event for the Group’s long-term future: on 1 April 2009, Rémy Cointreau rolled out its new worldwide commercial structure, thus taking control of 80% of its turnover and establishing a presence in new countries such as India and Brazil. Group brands now benefit from distribution that is consistent with their premium positioning and the direct application of their strategy by talented teams.
In an ongoing difficult economic environment, the Group achieved a 12% increase in turnover and a 7.2% increase in operating profit of €140 million. Rémy Cointreau thus demonstrated great resilience in the current crisis due to the success, from the first year, of its new distribution model, the dynamism of its brands and the high quality of its products.
A highly relevant value strategy
By deliberately positioning its brands in the premium segment, Rémy Cointreau has shown good resilience in its historic markets and formidable growth in new countries, particularly Asia. This decision was supported by additional advertising and marketing investment.
We have maintained our policy of price increases and have focused on margins rather than volume by aligning the selling price to the unique nature of our brands. This is particularly true for Cognac, where our price positioning and the predominance of superior qualities in our key markets have enabled Rémy Martin to maintain a high level of profitability.
In the context of a very adversely affected category, Champagne declined, but continued to defend its position in its markets while pursuing its proactive policy of maintaining prices.
The change in consumption trends is also a key element in the success of our brands. In all our markets, Cointreau led the trend for cocktails, and it has huge potential in the US when the market recovers. Driven by its dynamic positioning, the brand also achieved a noticeable upturn in the Brazilian and Australian markets.
Teams that are stronger and more motivated than ever
We have made considerable efforts to organise our teams and optimise our resources. This resulted in the successful establishment of 400 sales people in over 30 countries. They have rapidly become part of the Group’s dynamics and focus on our portfolio of high quality, strong and sought after brands.
Although the efficiency of our new network was partly constrained by economic difficulties, the positive results of the year demonstrate the confidence of all our employees in the business strategy. Their motivation and commitment are tremendous strengths for the future as the market recovers.
The positioning achieved by Rémy Martin in the principal Asian markets augurs well for future growth: today this huge region represents over 50% of the Cognac market. Consumers there are well aware of very superior qualities and greatly appreciate them. This year, they acknowledged the Louis XIII Rare Cask limited edition as the most sought after of any cognac.
Liqueurs and Spirits, as well as Champagne, also benefited from the team’s enthusiasm in promoting the potential of our brands, whether it was the Cointreauversial show presented in the world’s largest capital cities by Dita Von Teese, the prestigious launch of Mount Gay Rum 1703, or the nomination in Reims of Régis Camus as 2009’s best cellar master for the fourth consecutive year.
New consumers who are more knowledgeable and loyal
With a redesigned distribution policy, targeted at influencers and the on-trade segment, we have increased support for our brands and will pursue our policy of key investment to make our ever more demanding consumers aware of our products and increase the loyalty of those who already appreciate them.
The commitments we have made in respect of our corporate and social responsibility are based on this work, which is an integral part of our strategy and contributes to our objectives by guaranteeing unwavering quality, while at the same time strengthening the international status and power of our brands and meeting our commitments to all stakeholders in the business. They motivate us and encourage us to continually improve.
The second half of 2010 should confirm these positive results: our strategy of excellence and our management efforts enable us to focus on, defend and improve our worldwide positioning.