Rémy rationalises its operations

The French drink group Rémy Cointreau, may divest some brands following its Euro 510m acquisition of the Dutch producer of Blue Curacao Bols, the Financial Times reports. Rémy Cointreau claims its goal is to rationalise its operations and this may lead to the sale of some brands. Rémy's portfolio review comes as Pernod Ricard and Diageo plan to sell some of the unwanted brands acquired as part of their US$8.15bn joint purchase of Seagram's spirits business. In August 2000, it acquired Bols, which strengthened its distribution network in Eastern Europe. Rémy reported recently a 71 per cent rise in net profits to Euro 94m for the year ending March 31. Sales climbed 26 per cent to Euro 926m. The earnings were slightly higher than expected, helping Rémy shares gain 2.9 per cent to Euro 38.13. Rémy Cointreau expects earnings to rise 20 per cent this year. Source: Financial Times