Rémy Cointreau Warns of Deeper Sales Decline Amid Challenges in China and the US
- Jan. 30, 2025
- FMCG HORECA BUSINESS

In a recent update, French liquor giant Rémy Cointreau has once again lowered its sales expectations for the year, marking the third time in four months that the company has adjusted its forecast. The luxury drinks maker, renowned for its Rémy Martin cognac and Cointreau liqueur, pointed to a “marked decline” in China and ongoing struggles in the US as the primary reasons for the downturn.
Challenges in Key Markets: US and China
The company’s latest guidance came as a disappointment to investors, with shares dropping by 3.8% in early trading. Despite a better-than-expected performance in its third-quarter sales—largely driven by a stronger-than-anticipated showing in its cognac segment—Rémy Cointreau remains cautious about the year ahead.
The company now forecasts a full-year sales decline of between 15% and 18%, with the more likely outcome being closer to an 18% drop, a level worse than analysts had predicted. The revised outlook highlights the challenges the company faces, particularly in its two biggest markets: the US and China.
Ongoing Struggles in the US Market
In the US, high interest rates and inflation have led to a tightening of spending, prompting retailers and wholesalers to reduce their inventories of more expensive items like Rémy's cognac. This is compounded by fierce competition, with rivals slashing prices to stay ahead in the market. Despite these challenges, Rémy Cointreau’s cognac sales in the US performed better than expected, with a 22% drop compared to the 27% analysts had anticipated.
Sluggish Growth in China
Meanwhile, China has also posed challenges for the company. The Chinese market, which is a crucial driver of global cognac sales, has slowed considerably, facing a combination of economic sluggishness and low consumer confidence. Rémy Cointreau specifically flagged a “marked decline” in the region, which further exacerbates its global outlook.
With China and the US accounting for the lion’s share of the company’s cognac revenue—about 70%—the impact of these regional declines is significant. The company also faces the looming threat of tariffs in both markets, particularly in China and the potential for new levies in the US, which could further hurt its performance.
The Road Ahead
Despite these challenges, Rémy Cointreau is holding firm to its full-year guidance, noting that the trends seen in the fourth quarter will be crucial in determining whether the company can meet its adjusted expectations. Analysts, however, are cautious, with many expecting the company’s sales decline to be on the higher end of the forecast range.
As the company navigates these difficult market conditions, it remains to be seen how Rémy Cointreau will adjust its strategy to recover in these key regions. For now, investors will be keeping a close eye on the fourth quarter for any signs of recovery or further deterioration in sales.