Remy Cointreau Enjoying Fruitful Rewards From Its Premium Positioning

Banking on robust Asian demand for premium cognac, French cognac producer Remy Cointreau witnessed a forecast-beating increase in its operating profits for the six months to September 2011. Remy reported a 30.7% organic growth in its operating profits to reach EUR106.2mn (US$142.4mn), beating analysts' estimate of EUR101mn (US$135.3mn), according to a Thomson Reuters poll. This impressive sales showing bears out the stronger premiumisation momentum in Asia, particularly China, as a rapidly expanding middle class develops a growing appetite for higher-value cognac brands. Looking ahead, a reasonably strong financial power should facilitate Remy's ambitions of acquiring a few brands to complement its premium brand positioning and leave it better poised at the forefront of a middle-class evolution in Asia.

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