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French cognac maker Rémy Cointreau has named Franck Marilly as its chief executive as the business navigates a global downturn in alcohol sales and trade tensions between its two biggest markets, China and the US.
Marilly will work with outgoing chief executive Eric Vallat to ensure a smooth transition before taking over on June 25, the company said on Wednesday. Rémy Cointreau announced Vallat’s departure last month after five years in the role.
Marilly has held a number of senior roles in the luxury sector, including at Chanel and most recently at Japanese cosmetics company Shiseido, where he was chief of the Emea region and the global fragrance division.
His “in-depth knowledge of international environments, his successful track record and his inspiring leadership will be key assets that will enable him to meet the challenges ahead”, chair Marie-Amélie de Leusse said in a statement.
Marilly joins Rémy Cointreau at a difficult time for the Paris-listed company, whose brands include Rémy Martin cognac, Cointreau liqueur and Mount Gay rum. Sales fell 18 per cent last year on an organic basis, dragged down by declines in cognac sales particularly in China, where weak consumer confidence and an anti-dumping investigation in response to EU restrictions on Chinese electric vehicle sales is ongoing.
Sales in the US had bounced back but are now threatened by possible US tariffs on European exports under President Donald Trump’s radical trade policies. Rémy Cointreau shares have fallen 45 per cent in the past year for a market value of €2.47bn.
Marilly will also have to navigate longer-term trends such as people drinking less and changing consumer tastes that have hit the popularity of cognac in favour of other alcohols such as tequila. Cognac accounts for more than two-thirds of Rémy Cointreau’s sales. Rival LVMH’s Hennessy cognac has also faced sales declines in recent years.
Rémy Cointreau said that under Marilly, the company would reinforce the popularity of its brands, consolidate its position in key markets, while “opening up to new territories”.
