Cognac Stirs: What Rémy, Pernod and LVMH Just Told Us

Three weeks of results have given the clearest read in a year on the luxury spirits trade. On 28 October Rémy Cointreau, the house behind Rémy Martin and Louis XIII, reported first-half sales (April to September) of €510.9 million, up 2.9% on an organic basis and 4.4% as reported, according to figures published by Zonebourse and BFM Bourse. The second quarter alone grew 4.2%.

The engine was cognac: the division rose 12.4% organically, helped by faster shipments to China and solid Asian markets. Liqueurs and spirits, which includes Cointreau, fell 7.4%, hit by destocking in the United States after distributor changes, although the group says underlying American demand is improving.

Three groups, one map

• Rémy Cointreau (28 October): first-half sales of €510.9 million, +2.9% organic; cognac +12.4%; expected tariff cost cut to €5 million from €20 million.
• Pernod Ricard (15 October): first-quarter sales of €2,234 million, -0.9% organic, with the US down 10%, China down 25% and India up 19%; Jameson grew while Martell and Absolut declined.
• LVMH (12 October): Wines & Spirits revenue of €4,027 million over nine months, +5% organic and +6% in the third quarter, with champagne recovering and Hennessy showing good momentum in Asia.
• The common thread: Asia and India improving, the US still working through distributor inventory.

Cognac is not back to its boom years, but the numbers have stopped falling in a straight line.

Context matters. Pernod Ricard expects full-year organic sales to be broadly stable, with declines in the US and China offset by growth elsewhere, including India, and it calls the environment mixed and uncertain. Its shares hit a five-year low of €58.72 on 29 September before rebounding after the update.

What it means for the bottle on your shelf

• Prestige cognac is growing again in Asia, the market that drove its boom and then its slump.
• In the US, both Pernod Ricard and Rémy Cointreau point to inventory adjustments by distributors, not only weaker drinking.
• Rémy Cointreau confirmed its goal of returning to sustainable organic growth this fiscal year and says tariff savings will be reinvested in its brands.

Next date: Rémy Cointreau presents its half-year results and medium-term outlook on 25 November. None of this is investment advice; if you hold drinks stocks, talk to a qualified adviser.