DEO - Remy Cointreau - A Premium Distiller Trading At A Premium Price

• Remy is a clear play on the global premiumization trend, as virtually all of the company's products are premium.
• Management is looking to fix its lagging share in the higher-margin XO cognac category, and is looking to manage the business less on price and more on margin.
• Management also wants to give more attention to its non-coganc brands, including Cointreau and The Botanist gin, both of which can be bigger contributors with some brand investment.
• It takes some stretching to make the case that Remy Cointreau is meaningfully undervalued, but management is advancing a plan to accelerate both revenue growth and margin leverage.

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