Check this out:
Rémy Cointreau has reported a 235% increase in profit, from €14.1 million ($22m) to €47.3 million ($63.3m), for its first half ended September 30. Excluding non-recurring items, net profit totaled €61.5 million ($96m), up from €50.6 million ($79m) in the same period last year. Current operating profit, meanwhile, rose 27.3% to €106.2 million ($165.8m), as net sales grew nearly 11% to €474.9 million ($741.6m).
What’s that to do with China, you might ask? Onl;y this:
The group’s Rémy Martin Cognac led the growth, posting a 27.6% increase in operating profit to €91.2 million ($142.4m). The Cognac brand benefited primarily from “a thriving Asian economy”—particularly in China…
Cognac sales are once again on the rise elsewhere — France, Germany and Russia are also mentioned — but considering that global sales have been flagging for years, a 27% bump is massive, and yes, it’s fueled largely, perhaps exceptionally, by China.
While those words sink in, consider this story and its potential impact on the global wine market.
We are indeed entering interesting times in the alcoholic beverage world.