Remy Cointreau, a French manufacturer of brandy and liqueurs, jettisons sales objectives due to Trump's tariffs causing financial strain.
Global drinks giant Remy Cointreau, famed for its Remy Martin cognac and Cointreau liqueur, has joined the list of companies scuttling sales targets amid the trade war sparked by US President Donald Trump. This Paris-listed corporation, now entangled in a promotional spree with White Lotus actress Aubrey Plaza, admits that its 2030 goals, set in 2020, are no longer achievable.
They blame this predicament on persistently slow US sales and crippling tariffs. However, their shares surged by 4%, indicating optimism as they claim to have navigated the lowest point of sluggish sales. CEO Eric Vallat expressed hope, saying, "We believe we've weathered the storm."
Diageo and Pernod Ricard, fellow spirits titans, have followed suit, retreating from their sales targets during these trying market times. Remy Cointreau, which generates 70% of its sales from cognac, primarily in the US and China, has had a rough ride. Slow consumption in both major markets, coupled with levied tariffs, has hit Remy harder than its peers.
The alcohol sector has been taking a beating lately, with the boom years of costly liquors a distant memory. Global turbulence and protectionist policies have contrived an unpleasant mix, leaving these companies struggling to buoy their sales.
Stock prices of Remy Cointreau and other spirits industry giants like Diageo and Pernod Ricard have fluctuated amid the economic strain caused by tariffs and slowing sales, particularly in the US and China. Despite admitting that their 2030 business goals, set in 2020, are no longer achievable, Remy Cointreau's shares saw a surge of 4% during a promotional partnership with Aubrey Plaza, indicating investor optimism about the company's resilience in the challenging finance landscape.
