The difficulties of cognac are still being tackled by Rémy Cointreau who, in addition to the problems of the sector in China, must also think about his home accounts, The first is the problem of sales in the USA. The French company of spirit, in fact, has been hit from a stronger decrease than previewed in the first trimester of fiscal year 2024-2025 (closed to 30 June 2024) the US cognac market has experienced stock problems that have extended to the liqueurs and spirits division.

The transalpine group closed the first quarter of 2024-25 with revenues at 217 million Euros, down 15.7% compared to a year ago and down 15.6% on an organic level. Double-digit declines for all divisions: the Cognac division lost 12.2% to 135.5 million Euros (down from 155.1 million in the first quarter of 20213-2024). The Commission’s report on the European Union’s "Continued scrapping in the face of a persistent decline in stocks that continues to weigh on sales in a global market grappling with a fiercely 'promotional' ambie Depressed by consumers". The Apac region is also in poor shape, with a "slight contraction due to the stagnant market in China and the worsening consumption in South-East Asia". Sales in Japan and the Emea area were positive, with "heterogeneous" trends. 

The Liqueur & Spirits division is no better off, falling by 20.4% to 75.8 million Euros from 95 million in the first three months of 2023-2024. Again the company said that the unit was hit by a "sharp drop" in sales in Europe, between high inflation and more promotions from rivals, and a decline in demand in the south-facingThe Commission has also been working on a number of proposals to improve the quality of the wine.

Despite this, the group has left its forecasts unchanged for the whole year on the basis that its strict financial controls are having a positive effect. The company announces that "it will continue to exceed the milestones of its ten-year development plan" and to expect that the destocking problems in the United States will be resolved in the next fiscal year. Overall, a "gradual recovery" is expected over the course of the year.

At the group level, Remy described the Chinese market as "slow". He had enjoyed a surprise in increasing cognac sales there in the fourth quarter of last year, but warned that it might not last.