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Troubled Remy Cointreau names replacement chief executive

Published:  11 June, 2014

Rémy Cointreau which has seen profits and sales rapidly decline over the first half of the year, has named Valérie Chapoulaud-Floquet as the new chief executive slated to take contirl of the struggling spirits brands in mid-September.

Rémy Cointreau, which has seen profits and sales rapidly decline over the first half of the year, has named  Valérie Chapoulaud-Floquet as the new chief executive.

Chapoulaud-Floquet, expected to take the reins in mid-September, is a luxury specialist and held posts with L'Oreal and Louis Vuitton. During her 20 year career at L'Oreal she worked in Asia, Europe and North America. In 2008 she moved to work for LVMH, and was the brand's chief executive of the Americas prior to her departure for Rémy Cointreau.

Rémy Cointreau has been plagued this year with both financial and executive personnel issues, fuelling rumours the family-owned company could be in trouble.

Rémy Cointreau BrandsRémy Cointreau BrandsRémy Cointreau Brands

Rémy Cointreau Brands

In April, the company warned that profits could fall as much as 40% due to the crackdown on anti-corruption and luxury gift giving in China. At the beginning of June, Rémy Cointreau reported that operating profit fell 38.8% in the year ending March 31.

The company has been hit much worse than others due to its exposure and concentration in the Chinese market.

The Rémy Martin Cognac brand, which is responsible for 70% of Rémy Cointreau's profits, announced on January 21 that sales has dipped by 35% for Rémy Martin Cognac. Cognac makes up 80% of the company's total operating profit, half of which is accounted for through sales in China.

The poor financial news reported earlier in the year was announced as several key executives left the company. The chief executive position was left vacant when Frederic Pflanz, the former chief operating officer who became the chief executive on October 1, stepped down for personal reasons in January of this year. This was followed by the departure of Patrick Piana, the key leader of Rémy Martin Cognac brand, on January 23, 2014.