Remy Cointreau Sees Champagne Unit Offers In Dec, Many Interested
November 30 2010 - 5:46AM
Dow Jones News
French alcoholic drinks group Remy Cointreau SA (RCO.FR) has
received substantial buyer interest for its champagne unit, and the
company's chief executive expects to receive offers for the sale in
the next few weeks.
"We have much interest for the champagnes and are waiting for
the non-binding offers by the end of December," CEO Jean-Marie
Laborde told at a press conference Tuesday, adding that Remy
Cointreau would be willing to keep those champagne brands in its
distribution network, if the buyer so desires.
Laborde said he can't rule out Remy Cointreau getting back into
the champagne business in the medium-to-long term because there are
some brands in the market with very good value and good
profitability.
Remy Cointreau has said it is getting out of the champagne
business now because its Charles Heidsieck and Piper-Heidsiek
brands aren't generating profits, and the company requires the
money for the disposal to invest in its cognac business, which
makes Remy Cointreau the world's second-largest producer behind the
Hennessy brand of French luxury products group LVMH Moet Hennessy
Louis Vuitton SA (MC.FR).
During the 2010 fiscal year, that ended on March 31, the
champagne unit generated EUR96.7 million of revenue and an
operating loss of EUR4 million. The company is hoping to get
several hundred million euros for the champagne unit.
-By Amelie Baubeau, Dow Jones Newswires; +33 1 4017 1740;
amelie.baubeau@dowjones.com