By Kristy Dorsey
Premium spirits group Remy Cointreau, owner of the Bruichladdich Distillery Company on Islay, is expecting a 35 to 40 per cent decline in profits for the first six months of the year after achieving better-than-expected sales during the first quarter.
The French group, known widely for its Cointreau liqueur, was helped by “resilient” domestic consumption in the US and the UK as consumers took to mixing cocktails at home during lockdown. This helped mitigate the damage from the closure of restaurants, hotels and duty-free outlets during the height of restrictions to control the coronavirus pandemic.
The result was a 33% decline in sales to €150.1 million (£135.3m) during the three months to the end of June. This led the group to revise its estimate on profitability for the first half of the year, which it had previously predicted would fall by 45-50%.
READ MORE: Scotch whisky distiller targets becoming ‘all-Islay’ operation
The liqueurs and spirits division proved more resilient than in the House of Remy Martin, which makes the high-end Louis XIII and Remy Martin cognacs. Sales in the former were down 17% in the first quarter, versus a 39% decline for Remy Martin.
Sales of Metaxa, St-Remy brandy, The Botanist gin and whisky all declined, mainly due to the drop in duty-free sales that accounts for a significant proportion of these brands’ business. Bruichladdich produces The Botanist as well as single malts, and has been part of Remy Cointreau since it was purchased for £58m in 2012.
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