Remy Cointreau’s 2030 plan has been completely withdrawn as the luxury spirits maker faces escalating tariff pressure and global trade uncertainty. The French company announced Wednesday it’s scrapping its long-term financial targets, citing macroeconomic challenges and weakening luxury demand that make Remy Cointreau’s 2030 plan unattainable under current conditions right now.
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Global Trade Tensions Shake Remy’s Forecast And Luxury Demand
Strategic Abandonment Of Long-Term Targets
The Remy Cointreau 2030 plan withdrawal represents such a dramatic shift from the company’s original ambitions that were set back in June 2020. The maker of Remy Martin cognac had targeted a gross margin of 72% and also an operating margin of 33%, but achieved only 70.6% and 22% respectively in fiscal 2025. Sales declined 18% organically while operating profit also tumbled 30.5% to €217 million.
The company stated that conditions required to maintain Remy Cointreau’s 2030 plan are no longer in place right now, with tariff pressure from both US and Chinese trade disputes creating unprecedented fiscal uncertainty for European drinks manufacturers. At the time of writing, these global trade tensions continue to reshape the entire luxury spirits sector.
Tariff Pressure Creates Financial Headwinds
Increased customs duties could deliver such a devastating €100 million hit to Remy Cointreau’s finances, though the company believes it could mitigate around €35 million through operational adjustments. This tariff pressure has forced the abandonment of Remy Cointreau’s 2030 plan as global trade tensions escalate further.
Under a worse scenario with increased duties, the company expects an organic decline in operating profit in the mid-teen to high-teen range. Without tariff increases, current operating profit could grow in high single-digit to low double-digit range over fiscal 2026, as luxury demand slowly recovers from post-pandemic normalization and fiscal uncertainty begins to ease.
Leadership Transition And Market Recovery
Incoming CEO Franck Marilly will establish his own strategic roadmap after taking over on June 25, replacing the scrapped 2030 plan with new objectives that are more realistic. The company now targets mid-single-digit organic sales growth by fiscal 2026, which is a more modest goal reflecting current global trade realities and also reduced luxury demand expectations.
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Currency headwinds add further pressure right now, with adverse effects potentially hitting sales by €35 million and also operating profit by €15 million. The European drinks industry continues facing tariff pressure as broader trade disputes between major economies reshape long-term planning across the sector.
The withdrawal of Remy Cointreau’s 2030 plan highlights how quickly fiscal uncertainty and global trade tensions can force even established luxury brands to completely reassess their strategic direction and abandon ambitious growth targets that once seemed achievable.