Rémy Cointreau Appoints Franck Marilly as CEO to Drive Growth

Rémy Cointreau, the French group famous for its production of premium wines and spirits, has just announced the appointment of its new CEO, Franck Marilly. On April 10, his predecessor, Eric Vallat, submitted his resignation to the board of directors and handed over the reins on an interim basis to the chair of the board, Marie-Amélie de Leusse.

Franck Marilly is well known in the business world for his career in the luxury sector, notably at Chanel and Shiseido, but also for his knowledge of foreign markets, which is essential to Rémy Cointreau's growth, particularly in the United States.

The new CEO will take up his duties on June 25. “Eric Vallat will work alongside Franck Marilly to ensure a smooth transition, allowing him to take up his new role,” the company announced in a press release.

The departure of Eric Vallat, after six years at the helm of the group, came as a surprise. Although the former CEO had mentioned his intention to pursue a new career path in another field, his departure could also be linked to the difficult economic situation experienced by the company during the last financial year (ended March 31). Rémy Cointreau ended the year with a 17.8% decline in sales year-on-year (based on published figures), bringing its revenue below the billion-euro mark to €984.6 million.

Cognac sales proved to be the company's weak point, with a 30.8% year-on-year decline in revenue from this product. The fourth quarter confirmed this negative trend with a 17.1% decline in total sales compared to the same period last year and revenue of €196.8 million.

The complexity of the Chinese market is to blame: “This performance mainly reflects the significant decline in sales in the Asia-Pacific region, particularly in China,” the company said in a statement when it released its results.

Several factors contributed to the decline in the group's sales in the Asian market: caution in luxury purchases, the “normalization” of spending after a period of post-pandemic euphoria, and the ban on the sale of cognac in duty-free shops and tax-free outlets in China since last December, against the backdrop of a trade war with Brussels.

Although the brand has recently seen a recovery in cognac sales in the United States, Donald Trump's persistent desire to increase tariffs could slow this recovery in the long term.