THE MARKETS

AMERICAS

The positive macroeconomic environment in the United States was conducive to the spirits market, which saw greater growth in value than in volume, promoting high-end brands. In Latin America, our key markets are showing high potential: Barbados, Porto Rico and especially Mexico, where we have signed a new distribution agreement. That of Canada, a promising market, has been renewed.

Cognac continues to enjoy very positive momentum, driven by the selective distribution of Louis XIII and the marketing programmes of Remy Martin VSOP, 1738 and XO. Cointreau has experienced an exceptional year, confirming the strategy implemented through the Art of the Mix campaign.

Our Whisky portfolio continues to grow in selective distribution, with Westland in the lead of American Single Malts and Port Charlotte 10 Year Old ranked fourth best whisky by Whiskey Advocate. The Botanist is continuing to grow at a rapid pace and our targets remain high for the development of this exceptional gin. Lastly, Metaxa 12 Stars was launched in four key cities in February 2019 and is already showing its potential in cocktail bars.

In 2019/2020, the prospect of a continued move upmarket supports our optimism for another year of solid growth.

ASIE PACIFIQUE

Rémy Cointreau has benefited from strong growth in cognac sales across Asia, while winning market share in most countries. Louis XIII has achieved a remarkable year thanks to the growth in private client sales, especially in South-East Asia, which is undergoing rapid development. Rémy Martin has also recorded sharp increases in China (especially in restaurants, bars and karaoke bars), Singapore and Indonesia. Rémy Martin Club confirmed the excellent performance already achieved in previous years.

Our whiskies are also experiencing major growth: in 2018, the Greater China region became the first global market for Progressive Hebridean Distillers (PHD) single malts, and the launch of Port Charlotte 10 Year Old is already a success. Lastly, it is worth noting the growth in Cointreau sales across the entire China and the launch of Metaxa in some major Chinese cities, which support the diversification of our spirits in this market long dedicated to cognac.

In Malaysia, the opening of a distribution subsidiary since October 2017 has proved to be a winning strategy, while in Japan, Rémy Cointreau is resuming double-digit growth.

For 2019/2020, investments in communication and distribution structure, combined with structurally promising market trends, should continue to boost the growth of our exceptional spirits.