France-based liquor group Rémy Cointreau has become the latest major drinks player to invest in circular packaging company EcoSpirits.
The news was announced today (28 November) as the family-owned business released its half-year 2024/25 financial results, which recorded a dramatic fall in sales and profits.
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It has taken a minority stake in EcoSpirits via its new corporate venture-capital fund RC Ventures. The exact size of the interest has not been disclosed and nor has the amount it paid for it.
This is RC Ventures’ first investment. It joined other investors in a financing round.
EcoSpirits, which is based in Singapore with offices in London, Miami and Sydney, specialises in low carbon distribution technology for spirits and wines. Its ‘closed loop’ packaging system is said to fully replace the single-use glass bottle, eliminating packaging waste in the supply chain and reducing carbon emissions.
In May last year, French wine and spirits group Pernod Ricard acquired a minority stake in EcoSpirits as part of a $10m funding round led by New York-based investment group Closed Loop Partners.
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By GlobalDataIt has also worked closely with Diageo.
Announcing its investment, Rémy Cointreau said becoming a shareholder cements the existing operational relationship between it and EcoSpirits and Rémy Cointreau, which began in 2022.
Rémy Cointreau announced first-half sales of €533.7m ($563m), down 15.9% year-on-year. Operating profit of €147.3m was 17.6% lower than the corresponding periods. Net profit fell 24.2% to €92m.
Last month, Rémy Cointreau lowered its full-year sales outlook after another quarter of double-digit declines, prompting the liquor group to launch more cost-savings measures.
It introduced a €50m plan to cut costs as sales deteriorated again across its business regions, led by the Americas, one of Rémy Cointreau’s largest markets.
Speaking today (28 November) after its H1 results came out, CEO Éric Vallat said the cost-cutting plan will continue but that it is preparing for a recovery.
“Looking ahead, the second half will see continued efforts to rein in costs as part of our €50m full-year savings plan. But it’s essential that we not lose sight of our goals – and in that respect the time has come to prepare for recovery,” he said.
“We thus plan to begin reintroducing targeted investments in marketing as early as H2, to support peak activity in both the United States and China.”
