Remy Martin maker Remy Cointreau may shut India office

NEW DELHI: Remy Cointreau, maker of Remy Martin cognac, is shutting its India office and is working on a new distribution model to make its products available in the country. The French premium drinks maker has already served notices to over 30 employees of its five-year-old wholly-owned Indian subsidiary, several people familiar with the development told ET. Remy Cointreau did not respond to specific questions sent by ET about closing of its India unit, but said that it is working with a long-term global vision in mind.

Laetitia Delaye, head of investor relations for the company, in an e-mail response said that the company is studying various scenarios to improve its presence in India and certainly not intending to “move away”. “India remains a strategic market for us and has great potential, especially in the untapped premium and luxury segment,” she said. Besides Remy Martin, its prestigious brands include Louis XIII luxury cognac, Cointreau liqueur, Mount Gay rum and Bruichladdich Scotch.

According to an employee who did not wish to be identified, Remy Cointreau’s duty free business in India was doing well, while its retail sales had failed to pick up, largely due to high import duty

While its future plans for the country is not clear, sources expect Remy to focus on duty free business in the country.

Remy Cointreau India had in 2013 announced a joint venture with Nashik Vintners, owner of the country’s top wine producer Sula Vineyard, for launching India-specific brands.