Remy Cointreau

RCO: XPAR (FRA)
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Rémy's Focus on Premium Spirits Should Drive Future Growth, but Hinges 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.

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