Rémy Cointreau cuts China tariff forecast, raises U.S. impact as Q1 sales beat expectations 

FRANCE – Rémy Cointreau has revised its tariff impact forecasts, lowering its expected financial hit from duties in China while increasing the projected cost in the United States.  

The French spirits company disclosed the changes in its fiscal 2025-26 first-quarter results published on 25 July. 

According to the report, Rémy now anticipates a total net tariff impact of €10m (US$12.9m) in China, a significant reduction from the earlier forecast of €40 million (US$46.6M). This adjustment follows a minimum-price agreement reached between Rémy and Chinese authorities.  

Earlier in July, China’s Ministry of Commerce announced anti-dumping duties on brandy imports from the European Union. However, certain producers, including Rémy, were exempted from the tariffs after entering price agreements. 

In contrast, the group raised its tariff impact forecast for the U.S. to €35m, up from the previous estimate of €25m (US$29.14M). Despite this increased burden, the company adjusted its outlook for current operating profit. It now expects an organic decline of mid-to-high-single digits, compared to its earlier projection of a mid-to-high-teens drop. 

The group also reported improved quarterly performance. For the three months ending in June, organic sales grew by 5.7% year-on-year to €220.8m (US$257.4M), surpassing analyst expectations.  

The rise was primarily driven by a low base of comparison in the U.S. from the previous year. While sales in China remained in decline, Rémy described the drop as limited. 

The Cognac segment reported a 3.1% decline on a reported basis but achieved a 1.3% organic increase, generating €131.3m (US$153.1M) in sales. Meanwhile, the liqueurs and spirits unit saw reported growth of 13.6% and organic growth of 17.3%. 

Additionally, Rémy announced an investment in JNPR, a French non-alcoholic spirits brand. The investment, made through its venture capital arm Rémy Cointreau Corporate Ventures, aligns with the group’s strategy to explore emerging consumption trends.  

Though financial terms were not disclosed, Rémy stated that the move would help JNPR accelerate its growth in France and international markets. The venture arm is expected to provide operational support in distribution and marketing. 

JNPR’s product range includes alcohol-free spritz and bitter options, alongside sugar-free non-alcoholic bottled spirits. 

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