The pursuit of excellence as a driver of strong growth
For the third consecutive year, the House of Rémy Martin has achieved a remarkable performance with strong increases in sales and profits in all geographic regions. This growth has been coupled with a continued increase in the appeal of its Rémy Martin and Louis XIII brands among consumers throughout the world, whose desire for excellence, luxury and rarity continues to grow. Everywhere, the House of Rémy Martin has accelerated the development of its wonderful Petite and Grande Champagne eaux-de-vie, which guarantee the superiority of its cognacs. Through its upmarket and innovative strategy, the House of Rémy Martin is in a good position to continue to grow in value and seize every opportunity for development in the coming years, capitalising on the exceptional refinement of its products and their ability to appeal to new generations of consumers.
Patrick Piana, CEO of the House of Rémy Martin
The saga unfolds
Several factors combined to explain this increased momentum: firstly, a continued strategy of moving upmarket and sustained price increases on every continent. This strategy has helped promote the exceptional quality of the various eaux-de-vie from which Rémy Martin cognacs are made. We have had a succession of successful innovative projects, with the aim of adjusting the range of flavours to adapt as closely as possible to changing tastes and consumption patterns, whilst maintaining a regular dialogue with our target consumers. Finally, the activation of our brands, supported by significant marketing and commercial investment, contributed to enhancing recruitment and to ensuring the retention of consumers worldwide. The dynamism of the House of Rémy Martin has been remarkably visible on the three most buoyant continents. Asia is still at the forefront of the major markets contributing to growth: not only China, but also the countries of South-East Asia, where the taste for upmarket cognacs continues to grow. The success of 1898 and Rémy Martin Club is obvious proof of this. Another major market that experienced renewed vitality during the year was the US market. All the premium products from the House of Rémy Martin recorded growth in that market. Rémy Martin 1738 Accord Royal stood out, in particular, with an excellent performance, proving consumers’ appeal for high quality cognacs. In a very different style, the clear bottle of Rémy Martin V is now displayed in a growing number of bars with the aim of competing with other premium white spirits in making cocktails.
In Europe, despite the austerity measures introduced in southern countries, performances have been very satisfactory. Coeur de Cognac continues on a trend of double-digit growth, notably in Germany and the UK, where lovers of full-bodied and fruity cognacs, served over ice, are on the rise. Russia remains a market whose vitality fully justified the investment in the first televised campaign. Beyond national borders, the Travel Retail market confirmed its importance and the strategy of moving upmarket continues to be implemented. Rémy Martin is working to create dedicated, promotional areas offering travellers magnificent displays and a unique experience.
Conscientious about authenticity
Rémy Martin VSOP Fine Champagne continued to increase in value and volume thanks to its ability to innovate, through daring and dynamic limited editions and also through continuously updated displays in sales outlets, and on-trade premises. Thus, in the US, in 2011, Rémy Martin VSOP increased its exposure and desirability at night through Ring Leader, a programme that aims to identify and celebrate the most charismatic personalities, in line with RémyMartin VSOP’s image, where they can win and spend an evening living as a star. In Vietnam, thousands of consumers took part in the Centaur Dance Program through social networks, night club events and on television. At the end of 2011, the Urban Lights limited edition from Rémy Martin VSOP celebrated the night and its unique energy in major cities throughout the world.
Marked by both traditional and modern tastes, in the spring of 2012, Rémy Martin launched its new Rémy Martin VSOP edition destined for the European market. VSOP Mature Cask Finish has a slightly woodier, softer and fruitier finish thanks to a year of blending performed exclusively in old oak barrels. For the third consecutive year, Rémy Martin VSOP designed a stunning limited edition bottle for the 2012 Cannes Film Festival, packaged in gold and metal, exclusively for Global Travel Retail. Rémy Martin VSOP’s ability to reinvent itself has thus resulted in very robust growth in all key markets and a host of opportunities to create a buzz on the internet, particularly among young consumers.
The attraction of excellence
Modern ways steeped in tradition
In the Chinese market, the highlight has been the launch of Rémy Martin Centaure, an extra old cognac created to appeal to a new generation of young businessmen who are more concerned about authenticity and less inclined to formality than previous generations. Pierrette Trichet, the Cellar Master, selected fruit and honey flavours to accompany special moments.
The decanter, simply adorned by the raised seal of the centaur, magnifies the sensuality of this cognac, presented in the heart of summer on the volcanic island of Hainan. The product required an ambassador who could match its ambition: Anthony Wong, the famous Hong Kong actor with beguiling charm and a direct and frank personality, accepted this role. This was the perfect combination of talents. As before with Rémy Martin Club in Asia, 1738 in the US, and Coeur de Cognac in Europe, this new combination looks set to fulfil great ambitions. Distributed worldwide, XO Excellence, with an intensely velvety texture, experienced sustained growth, both in volume and value.
Higher up in the range of exceptional cognacs, Centaure de Diamant, exclusively launched in duty-free last year, is now starting to be consumed in domestic markets, particularly in China. Centaure de Diamant consists of many hundreds of carefully selected and blended eaux-de-vie and represents the epitome of the House of RémyMartin’s expertise.
The supremacy of absolute luxury
A symbol of rarity, Louis XIII has a global status which surpasses that of all other cognacs. Its incomparable eaux-de-vie, legendary history and the silhouette of the bottle have made it an icon. The House of Rémy Martin is extremely careful in managing the jewel of its heritage and does its utmost to turn this supremely luxurious cognac, the product of a combination of 1,200 Grande Champagne eaux-de vie-aged from between 40 and over 100 years, into a unique experience: in Japan, a LouisXIII room has been created in an exclusive hotel in Tokyo, the setting for a tasting session and a museum all in one place, which can be reserved for special occasions. The classification of the product as a rarity has inspired a new approach in the US: a close partnership with "Certified Retailers" and deployment of "Fortresses", which are genuine showcases among the most prestigious establishments in the world, and special links with connoisseur clubs that favour exceptional goods. In Shanghai, Singapore and London, regular tasting dinners for local celebrities maintain the legend. As a wonderful crowning tribute to its legend, Louis XIII was richly talked about at the launch of a Jeroboam bottle, consisting of three litres of the precious elixir in five kilos of crystal. The first 100 units were reserved immediately and the waiting list for the next batch continues to expand.