BROWN SPIRITS: RÉMY COINTREAU
buy,” states McLernon. “You do so because of the nice environment, beautiful shop-in-shops and knowledgeable staff. With liquor, it tends to be the other way around and normally because of price.” Encouraging consumers to trade-
up in value rather than volume is a key objective. “In travel retail, the greatest
opportunity is on Rémy Martin XO Cognac. For me, again it is about trading-up. The travel retail customer should be trading-up from VSOP to XO. “XO is the one that is doing
well and will continue to do so. That is our priority.” All things considered, Rémy
Cointreau is certainly well placed to help retailers trade people up to more expensive products. “We offer products which
have a beautiful story. We talk a lot about the people who create our brands. “I want more people in-
store to be able to do that. Each of our brands has a genuine story.” In terms of current
trends, the cognac DF&TR category continues to thrive, driven by the Americas and Asia. The Russian traveller is also back and spending.
Returning Russians According to recent data from Counter Intelligence Retail (CiR), total international traffic at Russian airports jumped by 25% in 2017, while Ukraine (10%), Germany (7%), China (6%), Turkey and Italy (both 5%) grabbed the greatest share of destination traffic. “We look at regions like Eastern
Europe and countries such as Greece, Turkey and even Dubai and see the impact of Russian travellers,” McLernon acknowledges. “They are high spenders on
alcohol which is also good.” From a regional TR perspective,
Asia has been more dynamic than Europe with Hong Kong, “which has been difficult the last couple of years”, starting to recover. The Americas is also starting to turn around, he emphasises.
MAY 2018
“Liquor has always been a small proportion of duty free there, but airport environments of the likes of Dallas and Miami have undergone quite a transformation.” Looking ahead to the rest of the
year, he is backing the company’s DF&TR business to accelerate. “We are showing more ambition.
Last year, was about being clear on our strategy. “We have refocused our priorities
and have a great view that less is more. This means we focus on fewer things and do them better. “The team are very clear on what
they need to do, so for us, the next 12 months are very exciting. We are optimistic in travel retail.” In order to achieve its DF&TR
targets, however, the team needs to be more nimble and agile. Content with the company’s
geographical split in the channel, the aim is to be in a position to react to changes in traveller destinations. He explains: “Taking
into account the current geopolitical positions in South Korea, Taiwan or even between the UK and Russia,
it is hard to predict what will happen. “We as a company have to
be quick enough to react. We may not be the largest player on the market, but I think we must be more agile. We can do things faster.”
Rémy Cointreau certainly has all
the attributes to make the necessary tweaks and work with retail partners to seize opportunities quicker. “We have a flat organisation
structure meaning we can make decisions very quickly,” says McLernon. “I believe speed can be one of our advantages.”
Educational focus Education is also vital, as McLernon previously alludes to. The company wants to ensure retailers’ staff as well as its own have the required knowledge. “If people are more educated, they
are more informed. Whether it’s our own brands or a competitor’s, if staff are not educated it breaks the experience.”
Rémy Martin warehouse and cellars.
“We know conversation and penetration is a challenge, but for us it is about the many people walking past who can see and touch our brands and maybe even experience them for the first time.”
Ian McLernon, Rémy Cointreau
There is certainly an ‘education job’ to be done, says McLernon, who believes single malt and Japanese whisky brands have utilised this to attract younger drinkers. “Our job is to ensure we open up
within brown spirits and bring the different taste-profile, experiences and provenance to life. “People are the secret weapon. If
you are selling premium or luxury depending on your definition, you need people and very good merchandising. “You also need a way of explaining why that product is worth more.” «
Left: Rémy Cointreau believes consumers should be trading up from VSOP to XO.
A Remy Cointreau bar in Singapore Changi T4. TRBUSINESS 147
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