Remy, Diageo Battle Tough Comps; Constellation to Focus on Margin Expansion

Remy Cointreau had some strong headwinds primarily affecting its flagship Remy Martin Cognac in its first half ended September 30. The French drinks company noted that the brand is still facing tough comps in the US (25% growth) and is feeling the affects of the strategic decision to pull back on its VS offerings. With that said, if you exclude the VS offerings, US depletions (sales to retailers) for the group's brands were up 4.4% for the half, indicating underlying trends are healthy.

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