Remy Cointreau most appealing to young drinkers
Millennial consumers like a drink or two – and their favourite brands are, apparently, all owned by two companies: Remy Cointreau and Pernod Ricard. Millennials are a crucial cohort for businesses to capture – they now outnumber every other generation (there are 75.4 million Millennials, which means they surpass even the Baby Boomers), and they have reached full ‘purchasing power’.
Importantly for alcohol companies, Millennials are still young – they’re aged between 20 and 36 in 2017. That means: these are people flocking to bars, dating, and making the most of their disposable time and income before children appear to soak both up!
Remy Cointreau’s share price has grown 36% over last 12 months
SOURCE: Yahoo Finance
In a recent report, analyst from Societe Generale claimed that Remy Cointreau and Pernod Ricard were the companies to beat when it came to appealing to Millennials’ tastes. In a note to clients they said that both companies benefit from owning “more premium portfolios” than their competitors – this, they claim, is a benefit given Millennials’ association of price with quality.
Expanding on what makes these companies so attractive to young drinkers, the analysts wrote:
"We believe both Pernod Ricard and Remy Cointreau are best-positioned, given that their brands have real provenance, quality and heritage, and the categories they are exposed to - dark spirits - have higher barriers to entry."
Dominion holds Remy Cointreau in its Global Trends Luxury Fund.
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