‘We might not be the biggest brand owner, but we want to be the most exciting’ – Rémy Cointreau’s global travel retail CEO Fida Bou Chabke speaks to Global Drinks Intel

GDI: What’s the split by brand?

FBC: This isn’t information that we publish. I can give you some examples, though: According to IWSR data, St-Rémy has 20% market share of grape brandy in travel retail, Metaxa has 18% (of grape brandy), while Rémy Martin is a top three cognac brand.

Bruichladdich is one of our smaller brands but it’s been experiencing fantastic growth, while Cointreau is in the top five in liqueurs and The Botanist is one of the top brands in super-premium gin. So, our brands are well positioned in travel retail and sometimes have bigger market shares than in domestic markets.

GDI: It’s almost as if Rémy Cointreau has a portfolio that’s made for global travel retail.

FBC: I’m glad to hear this! We put a lot of effort into every brand in terms of activations and innovation, from Louis XIII (cognac) at the luxury end to more affordable brands like St-Rémy, Metaxa and Mount Gay (rum). We really want to be a leader of exceptional experiences as well. This is a journey we’ve just started on.

GTR is a strategic channel for Rémy Cointreau and always has been. We were the first spirits company to set up a GTR-specific team and we’ve strengthened the team this year with the appointment of two new MDs to lead the regions.

Of course, we’ve been benefiting from premiumisation trends – while our volumes aren’t back to the same levels as 2019, we’re growing by both value and volume and we’ve exceeded the 2019 level of price/mix. 

GDI: How is the consumer environment in the channel at the moment?

FBC: It depends on the places and on the products. Overall, our current growth isn’t as strong as it was last year, but there’s still growth. It’s not just the wider economic challenges that are affecting GTR, but also the fact that Chinese travellers aren’t yet back to the levels that we were expecting – this applies beyond the Asia Pacific region.

We’ve also heard from some airports that there’s maybe a lower conversion rate and per-passenger spending, but that’s just cyclical. When you’re global and you have a diversified portfolio, you have a hedge. 

We can’t ignore that it’s a bit more difficult at the moment, but rather than jump to price promotions, we’re trying to add value through services and experiences. Promotion can only get you so far in this kind of environment.

GDI: Are there any category performances in the sales channel that you’re looking at with envy?

FBC: Tequila’s been very active recently from a very small base, and that’s something we don’t have in our portfolio.

Our single malt position with Bruichladdich is enviable, though. We brought back a peated range in travel retail, and launched a non-peated range as a channel exclusive. Last year, we had a sherry cask finish and a 21-year-old expression that sold out halfway through our current fiscal year (to March 2025). Next year, we’ll be introducing a 16-year-old organic expression that we’re very excited about. We’re really keen to expand the visibility of Bruichladdich.

GDI: What pressure do you feel to keep delivering strong results in GTR while the wider group is having a tough time?

FBC: I’d call it an opportunity rather than pressure. The situation offers more options to us with a lot of attention coming from each and every brand, which we’re very happy about. That helps our team to work on the experiences and activations on the ground. So, it’s more of an opportunity for us. 

GDI: What’s happening to the A&P spend for your division while the group hasn’t been in growth?

FBC: Investing where things are growing is the smart choice. If you look at the market in general, travel retail was booming so much in the last few years that a lot of money poured into the channel. At the same time, the cost of operating for everyone has been increasing.

I hope that we’ll see expansion occur in a more reasonable way – If we want to build and invest for the future, then now’s the time.

I’d really like us to build something that’s different and meaningful, and worth the investment. Take the example of our pop-up for Remy Martin’s 300th anniversary at Charles de Gaulle airport earlier this year. We took the time to bring as much as we could to the consumer, and we were really happy with the results.

It’s not just about our A&P, it’s about making the smart investment that at the end of the day is consumer-centric rather than just splashing the cash.

GDI: You mentioned rising costs from operators – is that your main pain point?

FBC: It’s part of the equation, for sure. We hear from some of them that they’re being more hit in other categories, so they’re turning to liquor to find growth opportunities. There are also things that weren’t charged for before that are now, such as activation spaces and visibility.

There’s also a trend to do things in a more standardised way; when an airport is renovated, for example, you sometimes lose that customisation for your brands that you had, especially in Europe. It goes back to what I was saying earlier, that I hope we can all start to invest in a more meaningful way.

GDI: What are you seeing in rum in GTR, given the high-profile acquisitions over the last couple of years?

FBC: A lot of rum’s volumes in the channel have been at the lower-priced entry level. Some retailers have identified premium rum, which is the right approach. You have to have an assortment that’s tailored to your travellers – There’s no point in putting rum in front of travellers who aren’t there yet.

GDI: Are you comfortable with the Mount Gay proposition?

FBC: Whenever more players enter, that usually grows the category, which is always good news. High-end rum is one example, another is American single malt, where we have Westland. It’s hard to build a category on your own!

GDI: Rémy Cointreau picked up two ESG awards from Global Drinks Intel late last month (Bruichladdich was the Green Packaging Initiative winner while Telmont was awarded ‘Sustainable Wine Product of the Year’). 

FBC: Our sustainability journey started a while ago with the removal of gift boxes for Rémy Martin VSOP. This year, there’s been a lot of work on lighter bottles, even for champagne, which is particularly challenging because you have to make sure sure they can hold the pressure. Elsewhere, Bruichladdich got its B Corp certification with a really high score last year, and they’ve worked really hard to make a lighter, more sustainable bottle. Every brand’s working on something.

It takes courage and effort to explain all that to the consumer, but I truly believe this is an area where we can be a leader. We might not be the biggest brand owner, but we want to be the most exciting by bringing both the experience part as well as the sustainability part. It’s important to the group and we take it very seriously.

GDI: It must be scary to move away from the premium cues, such as a heavy bottle, that GTR consumers are so familiar with.

FBC: Yes and, honestly, the brands and my team work hard to bring something else in return. Telmont has a customisation offer for its bottles, for example, which is done in a very sustainable way, while actively communicating why the brand does not use gift boxes.

Everything that we do, we try to do something that’s even more beautiful and compelling, but sustainable at the same time.