Remy Cointreau’s newly appointed CEO, Franck Marilly, has announced an ambitious transformation plan aimed at returning the French spirits group to growth after several challenging years marked by steep sales declines and market pressure in the United States and China. His strategy, unveiled on Thursday, signals a major shift in the company’s approach—one that prioritizes volume and accessibility over the high-price positioning that had long defined the brand.

First-Half Profits Fall, But Outperform Expectations

The maker of Rémy Martin cognac and Cointreau liqueur reported a 13.6% drop in first-half operating profit, a decline that, while significant, was still better than analysts had predicted. Investors responded positively: shares initially jumped 6% before stabilizing more than 2% higher by mid-morning trading at 39.06 euros.

Despite the downturn, Marilly reassured investors that the business is poised for a rebound. He stated with confidence that the “worst is over” in the crucial U.S. market, where persistent inflation and price-sensitive consumers have weighed heavily on demand for premium cognac.

A New Strategic Direction: Lower Prices to Regain Market Share

One of Marilly’s most notable changes is a move away from aggressive pricing. He acknowledged that Remy Cointreau had been “too dogmatic” about price increases—particularly in the United States—at a time when competitors were offering more affordable alternatives.

To win back consumers, the company will reduce prices on certain products, a move that may temporarily compress margins but is expected to boost volumes. Even small pricing adjustments, Marilly noted, could significantly improve Remy’s position in markets where high price points have driven consumers to rival brands.

A Company in Transformation: ‘Start of a New Era’

Marilly described the first half of the fiscal year as difficult but emphasized that it marked the “start of a new era” for Remy Cointreau. His turnaround plan includes:

• Rebuilding sales volumes through more accessible pricing
• Enhancing cash generation, including potential brand portfolio reviews
• Improving marketing effectiveness, ensuring advertising spend reaches the right consumers
• Expanding into new and emerging markets to reduce reliance on the U.S. and China

The CEO’s broader strategy will be further detailed in 2026.

Market Context: Stock Down 70% Since 2023

Remy Cointreau’s share price has struggled dramatically over the past few years. Since 2023, the stock has lost over 70% of its value, hit by weakened demand in the United States, ongoing softness in China, repeated sales forecast downgrades, and the abandonment of its 2030 long-term sales targets.

Analysts say Marilly’s plan is bold but not without risk. Barclays analyst Laurence Whyatt noted that targeting a broader demographic and expanding into developing markets may dilute Remy’s luxury image. This broader positioning, he warned, could pressure gross margins in the medium term.

Still, investors appear encouraged by the company’s renewed focus on growth fundamentals, suggesting cautious optimism for the months ahead.