Remy Cointreau brewing growth in Chinese market

China has further expanded its consumption of spirits like whiskey and cognac, fueled by growing demand from a younger generation along with female consumers and from more home-based consumption scenarios, said French spirits group Remy Cointreau.

Besides traditional sales channels such as restaurants, bars and clubs, increasingly sophisticated Chinese consumers have explored new ways of drinking at home or during outdoor picnics and "glamping" — a combination of the words glamour and camping — said Sophie Phe, CEO of Remy Cointreau China.

In its fiscal year of 2021 to 2022, global sales of the cognac division of Remy Cointreau grew by 26.3 percent year-on-year, thanks to a growing contribution from high-end and exceptional products, including sales growth from Remy Martin Club cognac in China, one of its largest markets.

"Remy Cointreau is very confident about the growth in China, and Chinese consumers are becoming more sophisticated at a personal level. Young consumers have access to Western spirits earlier than their previous generations, and some may be influenced by their experiences abroad," she said.

Single malt whiskey has attracted the attention of more female consumers than before, who have also shown a higher-quality demand for cocktails.

According to market research company Euromonitor International, by 2025, whiskey sales in China are expected to achieve $2.25 billion.

Still, total imported spirits account for about 3 percent of China's alcohol market in value and the China market is still dominated by baijiu, according to spirits analytics firm IWSR.

"The imported spirits market in China is expected to embrace new consumption scenarios and consumers and provide more diversified opportunities. Young consumers prefer fresh and diversified alcoholic drinks. The change in consumption structure will certainly bring changes to the market," said Jiao Guoqiang, general manager of COFCO W&W International Co.

Meanwhile, Remy Cointreau said it will continue to develop its e-commerce sales channels in China, and online sales have helped it reach more consumers from smaller cities where there is no presence of physical stores.

"We can interact with consumers directly and get to know their demands better through e-commerce sales. We are doing live-streaming sessions on different online platforms such as JD, Tmall, and Douyin," Phe said.

"Sales through livestreaming sessions have been an important channel, especially since the COVID-19 pandemic. Meanwhile, we are selling imported spirits and it's important for consumers to taste them. The integration between online and offline is important," she said.

In addition, the company is actively laying out its products in Hainan province. "Hainan has been an important market in the past two years and we have been increasing our investments there. Many consumers who go shopping in Hainan come from other cities in China and showcasing more products in Hainan can help raise brand awareness," Phe said.