French spirits group Remy Cointreau has forecast a return to growth in the key Chinese market next year on the back of increased promotional efforts, hoping to buck a trend that sent cognac sales down 32 per cent in the third quarter.
Remy has been hit by a Chinese government crackdown on gift-giving and personal spending by civil servants, as well as slowing economic growth in China.
Remy said yesterday it would further cut cognac shipments to China in the current quarter. However it also saw an upturn in its next fiscal year starting in April, and would stick to its sales and marketing efforts.
"We are keeping a cool head and sticking to our strategy of avoiding excess inventories and increasing promotional spend to boost [China] sales," said chief financial officer Luca Marotta. – (Reuters)