Remy outlines ambitious growth plan

Cheers, July-August, 2005

"We consider our company the best-kept secret in the industry," said Jim Chambers, president and ceo of the newly named Remy Cointreau USA, in an exclusive interview at the company's mid-Manhattan offices. Along with executive vice presidents Bob Ambrose (marketing) and Tom Jensen (sales), Chambers outlined an ambitious plan to "re-launch" the company so that it receives more recognition within the trade for the success of its widening portfolio of luxury brands.

The name change, from Remy Amerique, "helps to signify the new initiative in the company, and it better ties into the parent company [Remy Cointreau SA]," Chambers noted.

Ambrose pointed out that a medium-sized company like theirs has the flexibility to adapt quickly to changes in the marketplace. It also plays to what the three executives see as a new "entrepreneurial spirit" infusing the company.

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The executives have identified developing a "real partnership with the distributor networks" as a top priority. "We want to work seamlessly with the distributor community," Chambers said, "and to do that we're embarking on a new set of collaborative programs with them, to improve the message by which they go to market with our brands."

Jensen added, "Where the distributors have strengths, we want to work with them; where we can be of help, we'd like to offer that help."

The company has restructured its marketing department and strengthened its sales force. "In the past year we've created more efficient ways to use our sales staff by setting up strategic channels and by expanding national accounts," said Jensen. "And we're always searching for places that we can further penetrate the market."

Ambrose noted that the company has "increased the marketing budget by strong double-digits." Regarding its flagship, Remy Martin Cognac, Ambrose said the company is "launching the most aggressive campaign ever for the brand." The fully integrated marketing program taps into the brand's "Rewarding Journey" campaign by using celebrity endorsements, utilizing people from humble origins who have risen to tremendous success. The first four are basketball icon and entrepreneur Magic Johnson, well-regarded director Hype Williams, renowned boxer Oscar de la Hoya, and most recently, Oscar-winner Jamie Foxx.

Remy Martin remains the strength of the company, with its VSOP marque the most popular in the market at that level. "We want the consumer to understand the range of our portfolio," Ambrose said, which also includes VS, XO and Louis XIII, as well as the fairly new 1738, positioned between VSOP and XO (about $50 suggested retail) and currently available in only three to four markets.

At the same time, Ambrose pointed out that Cointreau continues to grow by double-digit percentages, and that the Scotch portfolio, including The Macallan, Famous Grouse and Highland Park, is doing well. The company, he said, intends to innovate by possibly introducing entry-level malts.

Because of the recent consumption trends favoring premium and super-premium wines and spirits, Chambers feels his company is in a sweet spot. "We deliver high quality products and high profit margin to distributors and retailers."

Recent developments include an exclusive agreement with Napa-based Merryvale Vineyards, as well as contract renewals by the Antinori and Masi winery families, designating Remy Cointreau USA as exclusive importer for their products. In addition, the company will become the exclusive distributor for Metaxa, the line of Greek aperitifs, including brandy and Ouzo, a brand owned by Remy Cointreau SA.

"You can have the brands, but you also have to have the will to change, to take advantage of opportunities," said Chambers. "Our ultimate goal is to make a good company into a great company."