We read with great interest the recent news from Wine & Spirits Daily regarding Rémy Cointreau’s 6.5% organic sales increase in the Americas for the recently concluded fiscal year – a healthy year-over-year sales increase to be sure, and significantly higher rate of growth than the 2.6% the total spirits category experienced. The article posited a few possible drivers of Rémy’s success which raised a commonly pondered question in our minds. To what can we attribute the outperformance of Rémy Cointreau’s portfolio among consumers? Read on for the details and for our analysis.
According to the Wine & Spirits Daily report, Rémy’s depletions were up 6% for the year largely thanks to increased consumer interest in Rémy Martin and Cointreau – the brand’s two flagship labels. W&SD concluded, the rising popularity of Cognac as a spirit was behind the increased depletions and strong sales growth.
Part of it is surely the overall popularity of cognac. We know that shipments of cognac were up a robust 11.4% in 2017 and overall, this spirit has been growing for most of the last 25 years. However, we’d offer the following as a concrete factor supporting Rémy’s rise to category leading growth figures: exceptional trade execution in on- and off-premise key accounts. While a rising tide will raise all boats, Rémy has been consistently able to drive impressive volume results selling against well-entrenched competitors like Hennessy which, according to Impact Databank reports has doubled in size since 2012, but at a higher price point. So, while competitors like Courvoisier, Martell and d’Usse have all been exhibiting solid growth also thanks to the increasing popularity of cognac in general, Rémy Cointreau has been able to carve out a leadership position through strategic application of tools and practices focused intently on strategic trade execution.
The other success driver mentioned in the W&SD article is a well-developed pricing strategy which Rémy has applied consistently since 2013-2014. The article also calls out recent reorganization of executive leadership posts. Again, it should be noted that Rémy seems to leverage technology and best practices in the field supporting consistent strategic pricing which deliver the stability, visibility and replicability of results critical to protecting continuity in both sales and brand image; even as changes occur both within the organization and outside in the marketplace. Rémy’s execution of their luxury portfolio’s pricing strategy is exemplary.
We’re proud to have Rémy Cointreau as a customer using the GreatVines beverage selling solution to execute their pricing strategy and key account activation to such productive and successful ends.