Remy Cointreau
RCO: XPAR (FRA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| PBm | LOCK|#<n$< | LOCK|!b#%fHk |
Rémy's Focus on Premium Spirits Should Secure Future Growth, but Relies on Recovery in Cognac
Business Strategy and Outlook
Rémy Cointreau has a strong position in the cognac category, which is dominated by the top four producers. Natural supply constraints and aging requirements stipulate high barriers to entry and pricing power for the leading cognac makers. We estimate the majority of Rémy’s revenue stems from its luxury cognac offerings, with the XO label retailing at nearly EUR 200 per bottle, and Louis XIII retailing for around EUR 3,000, depending on the geography. The rest of Rémy’s portfolio skews premium across scotch, gin, liqueur, and champagne categories.
