Remy Cointreau scraps 2030 sales targets amid U.S. tariffs, global market headwinds
French spirits giant faces financial pressures from U.S. and China tariffs, sluggish demand, and revises strategy under new leadership.
FRANCE – Remy Cointreau has abandoned its 2030 sales growth ambitions, citing sustained market volatility, sluggish U.S. performance, and tariff-related pressures in both China and the United States.
The French spirits group made the announcement while reporting a 30.5% decline in annual organic operating profit for the financial year ended March 2025.
The maker of Remy Martin cognac and Cointreau liqueur said its previously set long-term growth targets were no longer realistic due to deteriorating conditions in its core markets.
Approximately 70% of Remy Cointreau’s sales come from cognac, with a heavy reliance on the U.S. and Chinese markets—both of which have recently implemented or proposed steep import duties on European brandy.
In a statement, the company said, “Remy Cointreau believes the conditions required to maintain its 2029-2030 targets are no longer in place.”
It added that Franck Marilly, a luxury goods veteran who has taken over as CEO, would establish a new strategic roadmap for the business moving forward.
The group warned that in a “worst-case scenario,” proposed tariffs could reduce its operating profit for the 2025/26 financial year by a mid- to high-teens percentage.
These include provisional duties imposed by China on EU-produced brandy, as well as confirmed 20% U.S. tariffs on EU imports and 10% duties on products from the UK and Barbados.
The combined effect could deliver a €65 million (US$74 million) hit to the company’s operating income, even after mitigation measures.
The group’s operating profit for the year stood at €217 million (US$246.7 million), with €85 million in cost savings helping to offset some of the decline.
Elevated inventories in the U.S. were reduced by €60 million to a level not seen since 1920, and the company cut its workforce by 9% compared to 2022/23 levels. It also plans to scale back its purchases of eau de vie—the unaged brandy used to produce cognac—by up to 45%.
Despite current challenges, the company forecasts a return to mid-single-digit sales growth in the current financial year, largely due to a more favorable year-on-year comparison following the steep declines of 2024/25.
Remy Cointreau joins other major spirits companies, including Diageo and Pernod Ricard, in reassessing long-term targets amid global industry slowdown.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
