London — Remy Cointreau CEO Eric Vallat has resigned to pursue one other skilled mission after greater than 5 years main the French cognac maker, the corporate stated on Wednesday.
Vallat’s resignation comes as Remy finds itself on the sharp finish of commerce disputes affecting gross sales in its two largest markets, the US and China.
The board accepted Vallat’s resignation, efficient this summer time, the assertion stated, including that chairperson Marie-Amelie de Leusse will oversee the transition till a successor is chosen. It didn’t say what Vallat deliberate to do after leaving Remy.
“I wish to categorical our honest gratitude to Eric for his dedication, management and strategic imaginative and prescient,” De Leusse stated, wishing him success sooner or later.
Remy’s US gross sales had been spiralling downwards even earlier than US President Donald Trump introduced sweeping tariffs that might add a 20% levy to French exports resembling cognac. And China imposed tariffs on EU brandy earlier this 12 months.
Remy makes 70% of its gross sales from cognac, the overwhelming majority of which is offered in these two nations. This has left it extra uncovered to the tariffs than some rivals with a broader geographic attain or product portfolio.
The corporate’s shares have registered by far the steepest decline as spirits gross sales have slipped throughout the trade after a post-pandemic growth. Its inventory is down greater than 26% this 12 months.
Vallat stated he had strengthened the group’s foundations and was satisfied his successor would have the ability to depend on robust manufacturers to organize for a restoration.
“My dedication will stay complete till my official departure date,” he added.
Trevor Stirling, analyst at Bernstein, stated he had seen Vallat as a “very competent CEO” all through a roller-coaster tenure beginning with the Covid-19 pandemic.
“Inevitably, there will probably be a interval of inner anxiousness till the longer term CEO is introduced and bedded in,” he added.
The phrases and circumstances of Vallat’s departure compensation will probably be submitted to shareholders on the subsequent basic assembly, Remy stated.
Reuters
