Our Business Model Drivers
and Value Creation Model

Our Five Strategic Levers to Become the Global Leader in Exceptional Spirits

1. Asserting the unique positioning of the brands

  • Each of the Group’s spirits is linked to a particular terroir and know-how:
    Within the AOC Cognac region, the House of Rémy Martin’s eaux-de vie come exclusively from Grande Champagne and Petite Champagne, which have unrivalled aromatic profiles and ageing potential;
  • Our Islay single malt whiskeys are made uniquely from Scottish barley, then distilled and aged on the isle of Islay in accordance with traditional methods.
  • OUR DISTINCTIVE ADVANTAGE : THE SPECIFIC CHARACTERISTICS OF EACH TERROIR AND OUR KNOW-HOW MAKE OUR SPIRITS EXCEPTIONAL

2. Maximising the geographic potential of the brands and diversifying the drivers of growth

  • Our brands are still under-potentialized from a geographic standpoint:
    LOUIS XIII in the United States, Rémy Martin in Africa, as well as Cointreau and Metaxa in China.
  • The increasing strength of our pioneering brands: single malt whiskies, The Botanist gin or Mount Gay rum provide attractive growth potential.
  • OUR DISTINCTIVE ADVANTAGE : OUR BRANDS HAVE NOT YET REACHED THEIR FULL POTENTIAL IN ANY OF OUR MARKETS

3. Strengthening the emotional relationship with our clients

  • Increasing the desirability of our spirits: establishing a direct and personalised relationship with our clients through
    media and digital investments with targeted creative content, but also unique and unforgettable events.
  • Retaining our clients: a better understanding of their expectations allows a genuine and long-lasting relationship with our brands.
  • OUR DISTINCTIVE ADVANTAGE : OUR CLIENTS ARE SEEKING EXPERTISE AND DISCERNMENT BUT ABOVE ALL, EMOTION AND EXPERIENCE, ELEMENTS CONSISTENT WITH OUR BRAND PORTFOLIO

4. Adjusting the distribution network in accordance with the Group’s strategy

  • The Group’s strategy of moving towards the high-end of the market must be based on a distribution network whose expertise is consistent with the positioning of our brands: selective retail (wine merchants), high-end bars, restaurants and hotels, and even “retail”: for its LOUIS XIII cognac, the Group has a specific sales force and has opened three stores dedicated to the brand.
  • The development of online sales will also play a role in building a more direct approach to the distribution of our
    spirits.
  • OUR DISTINCTIVE ADVANTAGE :RECOGNISED EXPERTISE AT HIGH-END RETAILERS

5. Accelerating the group’s ambitions in the area of corporate social responsibility (CSR)

  • Rémy Cointreau’s 2020 CSR plan operationally focuses on 10 of the United Nation’s 17 Sustainable Development Goals, selected based on relevancy to the Group.
  • In particular, by 2020, the Group’s ambition is to achieve 100% responsible purchasing (percentage of suppliers having joined SEDEX), and have all of its winemaking partners committed to an environmental approach (AHVE 1).
  • OUR DISTINCTIVE ADVANTAGE :EXPERTISE AND CSR ACTIONS FOR MORE THAN 15 YEARS

A local know-how, an international presence

Today, the Group has a dozen directly owned subsidiaries (from the United States to China, including the United Kingdom, Belgium, Malaysia and Japan). This distribution network allows the Group to implement a price strategy and to be selective about its sales outlets in a manner consistent with its high-end positioning.

Rémy Cointreau began building its distribution network
across all continents at the end of the 1950s.
Click here to see our distribution network map

FY2018/19 sales: €1,216.5m (pre-IFRS)
Group’s geographical split

  • Americas 39% (=)
  • Asia Pacific 34% (+3pts)
  • Europe / M.East / Africa 27% (-3pts)

 House of Rémy Martin’s geographical split:
€851.9m (pre-IFRS)

  • Americas 42% (=)
  • Asia Pacific 44% (+2pts)
  • Europe / M.East + Africa 14% (-2pts)

Liqueurs & Spirits’ geographical
split:
€276.6m (pre-IFRS) 

  • Americas 40% (=)
  • Asia Pacific 13% (+2pts)
  • Europe / M.East / Africa 47% (-2pts)

Value Creation Model

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