In a complex economic and geopolitical context, Rémy Cointreau has chosen to adopt an offensive approach. The French company, owner of brands such as Rémy Martin and Cointreau, has announced the launch of the RC Forward plan, designed to strengthen profitability and maximize the potential of its brands, while the premium spirits sector faces a global downturn.
OBJECTIVES AND STRATEGIES OF THE PLAN
“After three years marked by a complex context, it is time for Rémy Cointreau to stand out in its sector – declared CEO Franck Marilly -. The Group has the privilege of relying on an exceptional brand portfolio and talented, motivated teams. The RC Forward plan aims to give us the means to generate our momentum of value creation and thus become less dependent on macroeconomic cycles. It also wants to strengthen the entrepreneurial and conquering mindset of our teams, enhancing the Group’s culture while introducing greater discipline, rigor, and performance orientation. Our ambition is clear: to improve profitability sustainably to generate additional resources to reinvest in growth.”
The plan includes five main strategic levers, including optimizing the distribution network, revenue management to maximize value creation, better allocation of communication and advertising investments, procurement optimization, and organizational simplification to accelerate project execution.
REORGANIZATION AND NEW LEADERSHIP
To lead the plan, Rémy Cointreau has established a Steering Committee within the Executive Committee, with five functions reporting directly to the CEO. Luca Marotta was appointed Vice CEO while maintaining oversight of Finance, IT, and Legal, while Ian McLernon holds the role of Group Chief Markets Officer and also manages the new Emerging Markets area. Mélanie Bulourde and Clarisse Petit are respectively Group Chief Operations & CSR Officer and Group Chief Human Resources Officer, while Franck Marilly temporarily assumes the responsibility of Group Chief Brands Officer.
The Executive Committee was also expanded with a new Prestige Division, which will oversee the LOUIS XIII, Telmont, and Maison Psyché brands, and with the creation of the Chief Transformation Officer role, entrusted to Célia d’Everlange for the duration of the plan. Two cross-functional units, the Innovation Lab and the Executive Lab, will be tasked with analyzing consumption trends and accelerating the implementation of strategic initiatives.
THE STOCK MARKET REACTION
Yesterday Reuters reported that the company’s shares are trading near 16-year lows, after falling more than 82% from the peak in November 2021, but following the plan announcement they rose over 3% in early trading yesterday, following the overall positive market trend.
UPS AND DOWNS
In the third quarter, Rémy Cointreau’s sales returned to growth, exceeding analysts’ forecasts, mainly thanks to performance in the United States. Specifically, the cognac and spirits producer recorded organic sales growth of 2.8% to 245.8 million euros, compared to the 1.7% growth estimate forecast by analysts. The cognac segment, which accounts for about 70% of global revenue, showed growth of 3.2%, higher than the expected 1.4%.
At the end of January, Marilly had promised a return to growth in the second half of the fiscal year and to boost volumes even at the cost of reducing prices. The company also employed an external consultant to diagnose problems and propose solutions to be implemented in 2026. Despite difficulties in China, linked to the Chinese New Year calendar and the contraction of demand for premium spirits, sales in Asia nevertheless showed positive signs.
However, in the first nine months of the 2025-2026 fiscal year, the company’s sales fell by 6.6%, amounting to 735.4 million euros, with more than 60% of the figure related to cognac. Despite the slowdown, Rémy Cointreau expects stable or slightly growing sales at constant exchange rates and a decline in current operating profit of more than 10 points. The most affected markets remain the United States and China, marked by tariffs, geopolitical tensions, and changes in consumer preferences, as well as a general reduction in premium spirits consumption.
INDUSTRY OVERVIEW AND POSSIBLE ALLIANCES
In a context of sector consolidation, at the end of March, Bloomberg reported merger talks between Pernod Ricard and Brown-Forman, owner of Jack Daniel’s. The combination of brands such as Martell Cognac, Jameson Irish Whiskey, and Absolut Vodka with Brown-Forman’s whiskeys and spirits would represent a “merger of equals,” involving the founding families of both companies. The possible deal, mainly stock-based, would allow the families to maintain a significant stake and help manage sensitivities around cross-border operations in the United States.
But the market difficulties of both companies, including weak demand for premium spirits in the United States and shrinking sales in China for Pernod, symbolize a struggling industry environment.
