Rémy Cointreau CEO Eric Vallat has resigned after five years at the helm of the French spirits group.
The resignation was confirmed in a statement released by the company’s board of directors, chaired by Marie-Amélie de Leusse, yesterday (9 April).
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Vallat is leaving to pursue “a new professional project,” Rémy Cointreau said.
A selection process for a new CEO is ongoing. De Leusse will “oversee the transition period” to ensure “the continuity of the group’s operations and the proper implementation of the strategic direction”, the company said.
Vallat said: “I will be leaving the group with the sense of having strengthened its foundations, and I am convinced that my future successor will be able to rely on strong brands to prepare for the recovery and give new momentum to our value strategy.
The terms and conditions of Vallat’s departure, including any compensation, will be presented to shareholders at Rémy Cointreau’s next general meeting, the statement added.
De Leusse said: “Over the past five years, marked by Covid, a period of exceptional growth, and more recently a volatile economic and geopolitical environment, Eric has successfully maintained the course of a long-term value-driven strategy.
“Under his leadership, the group implemented a portfolio strategy that enabled us to gain market share for our liqueurs & spirits division, develop an efficient and effective digital plan, and strengthen the transition to sustainable development.”
In a note to clients, Bernstein analyst Trevor Stirling, who covers Rémy Cointreau for the investment bank, said: “It’s a cliché but his tenure has truly been a giant roller-coaster, starting with the slump that came from the Covid closures, followed by the elation of post-Covid revenge conviviality, and more recently the normalisation of US consumption, the crisis of confidence in China, compounded by tariffs in both China and the US. Through all of this, we viewed Eric as a very competent CEO, navigating these turbulent waters as well as anyone could expect.”
In its most recent trading update published in January, Rémy Cointreau reported a 17.8% drop in organic sales to €797.9m ($878.7m) for the nine months ended in December 2024.
Third-quarter sales fell 21.5% organically and by 20.6% and on a reported basis, respectively.
Alongside those results, Rémy Cointreau projected its annual organic sales decline to be “close to 18%” and at “the lower end” of its guidance as the company continued to face challenges in the US and China.
In the first half of the fiscal year, the Cointreau liqueur producer booked €533.7m in sales, down 15.9% organically and 16.2% on a reported basis year-on-year.
Operating profit stood at €147.3m, down 17.6% organically, while net profit slumped 24.2% to €92m.
In October, Rémy Cointreau announced a €50m cost-savings plan amid pressure on sales.
In the year to the end of March 2024, the company’s sales were down 19.2% on an organic basis at €1.19bn.
Operating profit dropped 31.6% to €291.6m, with the group’s underlying, “current” operating profit 29.1% lower at €304.4m. Net profit decreased 37.1% to €184.8m.
Rémy Cointreau is set to report its sales for the fourth quarter of its just-completed financial year on 30 April.
