Remy Cointreau abandons growth targets amid Trump tariff uncertainty

By JANE DENTON and REUTERS

Updated: 09:51 BST, 4 June 2025

French spirits giant Remy Cointreau has abandoned its 2030 sales growth targets, citing tariffs, sluggish US sales and high levels of uncertainty.

The maker of Remy Martin cognac and Cointreau liqueur, which has been grappling with tariffs and sliding sales in its key US and Chinese markets, reported a smaller than expected 30.5 per cent drop in annual organic operating profit on Wednesday.  

But Remy said its 2030 targets were no longer realistic in the wake of greater economic uncertainty, weak US sales, and tariffs affecting its cognac in China and the US.

In a ‘worst-case scenario’, the group said tariffs and slow sales in China and the US could reduce its operating profit by a high-teens percentage. 

The group said on Wednesday: ‘The conditions required to maintain its 2029-2030 targets are no longer in place.’ 

Incoming chief executive, luxury goods veteran Franck Marilly, will establish his own strategic roadmap for the business, the company continued.

Dropped: French spirits business Remy Cointreau has abandoned its 2030 sales growth targets

Remy joined peers Diageo and Pernod Ricard in withdrawing sales targets that had become widely seen as overly ambitious as the entire sector endures a sharp slowdown from previous boom years for pricey liquors.

But the French business, which makes 70 per cent of its sales from cognac, mostly in the US and China, has suffered more than peers as drinkers in both nations ditch the brandy and both governments have levied tariffs.

The withdrawal of targets should come as no surprise, but the extent of the tariff hit outlined by Remy had not been baked in by the market, Jefferies analyst Edward Mundy said.

Remy said potential increases in duties could deal a €65million blow to operating profit after mitigation measures. As things currently stand, it expects organic growth in operating profit in the year ended March 2026.

Sales would also return to mid-single digit growth this financial year, but in large part thanks to an easier base of comparison versus steep declines in 2024/25, it forecast.

Group operating profit for the year ending March 2025 fell 30.5 per cent, against a 31.7 per cent drop expected by analysts. This was partially offset by €85million worth of cost cuts. 

In May, drinks giant Diageo outlined plans to slash costs after warning investors that US trade tariffs could cost the group around $150million, or £113million, per year.

Diageo said if these tariffs remain in place and no further import taxes are imposed, it will cost the firm an additional $150million on an annualised basis.

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Remy Cointreau abandons growth targets amid Trump tariff uncertainty

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