Remy Cointreau chief quits as shares at the cognac-maker tumble after Trump tariff threats

Remy Cointreau CEO Exits Amid Tariff Pressures and Stock Decline

The chief executive officer of Remy Cointreau, the renowned spirits giant, has announced his departure as the company navigates significant challenges including tariffs and a steep drop in share price. Eric Vallat, who has spearheaded the cognac maker for the past five years, will step down from the French group to pursue another venture this summer. The announcement comes as Remy Cointreau grapples with headwinds from international trade disputes and their impact on market valuation.

Leadership Transition at Remy Cointreau

The search for Vallat’s successor is underway, with chairman Marie-Amelie de Leusse assuming interim leadership responsibilities until a permanent replacement is identified, the company has confirmed. This leadership transition occurs at a critical juncture for Remy Cointreau as it faces evolving global market dynamics.

Impact of Trump’s Tariff Threats on Share Value

Share prices for Remy Cointreau have experienced a notable downturn, plummeting 14% in the last month. This decline is partly attributed to former US President Donald Trump’s threats to impose a 20% blanket tariff on imports from the European Union. These proposed tariffs have injected uncertainty into the market and negatively impacted investor sentiment towards European companies.

Trade Disagreements and Market Challenges

Remy Cointreau, known for its collaborations, including a recent promotion featuring “The White Lotus” actress Aubrey Plaza, has encountered difficulties following trade tensions between China and the EU. The luxury brand portfolio has been particularly vulnerable to the repercussions of international trade disputes.

Cognac Sales Affected by China-EU Trade Dispute

Last year witnessed China levying increased duties on brandy and whisky in response to the EU’s implementation of higher levies on Chinese electric vehicles. This retaliatory action has significantly affected French cognac shipments to China, which decreased by nearly 25% in 2024 compared to the preceding year. The trade dispute has created substantial challenges for spirits exporters like Remy Cointreau.