(Reuters) – Remy Cointreau on Wednesday named Franck Marilly as its new CEO, tasked with leading the French cognac maker through a period of spiralling sales and tariff threats in its key U.S. and Chinese markets.
Marilly, 59, who has worked in luxury and cosmetics groups including Chanel, Unilever and Japan’s Shiseido, will take office on June 25, replacing Eric Vallat, who resigned earlier this year after more than five years at the helm.
Vallat led Remy through the COVID-19 pandemic and a subsequent boom in luxury spirits that has since gone into reverse, with sales tanking.
Remy makes some 70% of its sales from cognac, mostly in the U.S. and China. Marilly now has to turn performance around at a time when drinkers in those nations are not buying the brandy, and when Remy faces tariffs on its exports to both.
Vallat will work alongside Marilly to ensure a harmonious transition, Remy’s statement said, adding Marilly had successfully navigated “high-stakes” environments in his previous roles.
“We are convinced that he will bring a new dynamic and will be able to confidently address the new challenges of the group’s growth,” Remy Cointreau Chairperson Marie-Amelie de Leusse said in a statement.
Remy’s shares, which have already fallen substantially since 2022, were down 1.2% at 0721 GMT.
VALUE STRATEGY
Remy’s sales have come under pressure amid a sluggish Chinese economy and tariffs on European brandy. Meanwhile, high interest rates and inflation have led to steep declines in the U.S., where Remy’s rivals have also been cutting prices and taking market share.
Remy however has maintained its approach of cultivating the value of its high-end brands, a strategy it says would be undermined by price cuts.
It said Marilly will continue this value-led approach and build up in new markets. Investors however have warned diversification will take time to show results.
The new CEO now also faces the threat of steep tariffs from the U.S. Remy is more exposed to tariffs than peers due to its reliance on Chinese and U.S. cognac sales.
Marilly said he was delighted to join the group, and would focus on brand value and sustainable results.
“Together we will accelerate the group’s development… while meeting the needs of a constantly evolving sector,” he said.
Previously, Marilly led the Europe, Middle East and Africa and fragrance divisions at Shiseido Group and Chanel, where he spent 17 years.
(Reporting by Mathias de Rozario in Gdansk, Dominique Vidalon in Paris and Emma Rumney in London; Editing by Christian Schmollinger and Jan Harvey)
