Latest news with #cognac
South China Morning Post
2 days ago
- Business
- South China Morning Post
French cognac businesses hopeful ‘positive' China talks could roll back tariffs
After Chinese tariffs hammered the French cognac industry, Guilhem Grosperrin, director of the Grosperrin family brand, senses a long-awaited breakthrough – a breeze of optimism stirring in the bruised industry. Following recent talks between the two countries – including a phone call between Chinese President Xi Jinping and his French counterpart Emmanuel Macron – he said he was hopeful that Beijing's duties on French cognac could soon be rolled back. 'What we are hearing is that the discussions [between Chinese and French officials] are going pretty well. The discussions are positive and the Chinese government is willing to listen to us.' Last October, Beijing imposed temporary anti-dumping duties on brandy and cognac imported from the European Union in retaliation for the bloc's tariffs on made-in-China electric vehicles. To avoid paying additional fees, Grosperrin said one of his Chinese clients refused to take an order that he had already paid for before the tariffs took effect. 'This gentleman is waiting for the negotiations to end, and [in the meantime] his money is stuck here in France,' Grosperrin said.
Daily Mail
2 days ago
- Business
- Daily Mail
Remy Cointreau abandons growth targets amid Trump tariff uncertainty
French spirits giant Remy Cointreau has abandoned its 2030 sales growth targets, citing tariffs, sluggish US sales and high levels of uncertainty. The maker of Remy Martin cognac and Cointreau liqueur, which has been grappling with tariffs and sliding sales in its key US and Chinese markets, reported a smaller than expected 30.5 per cent drop in annual organic operating profit on Wednesday. But Remy said its 2030 targets were no longer realistic in the wake of greater economic uncertainty, weak US sales, and tariffs affecting its cognac in China and the US. In a 'worst-case scenario', the group said tariffs and slow sales in China and the US could reduce its operating profit by a high-teens percentage. The group said on Wednesday: 'The conditions required to maintain its 2029-2030 targets are no longer in place.' Incoming chief executive, luxury goods veteran Franck Marilly, will establish his own strategic roadmap for the business, the company continued. Remy joined peers Diageo and Pernod Ricard in withdrawing sales targets that had become widely seen as overly ambitious as the entire sector endures a sharp slowdown from previous boom years for pricey liquors. But the French business, which makes 70 per cent of its sales from cognac, mostly in the US and China, has suffered more than peers as drinkers in both nations ditch the brandy and both governments have levied tariffs. The withdrawal of targets should come as no surprise, but the extent of the tariff hit outlined by Remy had not been baked in by the market, Jefferies analyst Edward Mundy said. Remy said potential increases in duties could deal a €65million blow to operating profit after mitigation measures. As things currently stand, it expects organic growth in operating profit in the year ended March 2026. Sales would also return to mid-single digit growth this financial year, but in large part thanks to an easier base of comparison versus steep declines in 2024/25, it forecast. Group operating profit for the year ending March 2025 fell 30.5 per cent, against a 31.7 per cent drop expected by analysts. This was partially offset by €85million worth of cost cuts. In May, drinks giant Diageo outlined plans to slash costs after warning investors that US trade tariffs could cost the group around $150million, or £113million, per year. Diageo said if these tariffs remain in place and no further import taxes are imposed, it will cost the firm an additional $150million on an annualised basis.
Reuters
2 days ago
- Business
- Reuters
Remy Cointreau withdraws its mid-term goals and posts lower annual profits
PARIS, June 4 (Reuters) - French spirits group Remy Cointreau ( opens new tab reported a smaller-than-expected 30.5% drop in annual organic operating profit, withdrew its mid-term goals and said sales would return to mid-to-single-digit growth during the next financial year. The maker of Remy Martin cognac and Cointreau liqueur said on Wednesday that the lower profits reflected weak sales in its key markets of China and the United States, where the group also faces tariff threats. Remy Cointreau, which last week named luxury goods veteran Franck Marilly as its new chief executive, said it had decided to withdraw its objectives for 2029-30, citing continued uncertainty tariffs. Its group operating profit fell 30.5 percent on an organic basis to 217 million euros ($246.7 million) for the full year ended March 31, 2025, which compared with analysts' expectations of a 31.7% fall in a company-compiled consensus of 15 analysts. ($1 = 0.8796 euros)
Reuters
28-05-2025
- Business
- Reuters
Pernod Ricard replaces head of cognac division amid industry troubles
PARIS, May 28 (Reuters) - Philippe Neusch, Pernod Ricard's vice president of cognac, has left his role, according to an internal memo seen by Reuters and confirmed by a group spokesperson on Wednesday. Neusch, who led cognac house Martell for fewer than two years as the industry grapples with weak demand and international trade tensions, will be replaced by Francois-Xavier Morizot, who already heads the group's champagne business. (This story has been refiled to correct the company's name in paragraph 1)
Wall Street Journal
28-05-2025
- Business
- Wall Street Journal
Remy Cointreau Names Franck Marilly as CEO
Remy Cointreau RCO 0.25%increase; green up pointing triangle said that Franck Marilly will take over as chief executive officer in late June. The French cognac maker said Wednesday that Marilly will succeed Eric Vallat on June 25. Marilly—who was appointed Foreign Trade Advisor of France in February—will continue to implement the group's value strategy while working to innovate its products, the company said.
