Guangdong Huanfa Business launches formal statement on the cooperation with Remy Cointreau (Stock code: Paris RCO. Abbr: French Remy Martin).

Huanfa has filed a lawsuit against French Remy Cointreau, one of the world's top 3 brandy brands. Huanfa has been the China's general agent of two famous products of French Remy Martin since 2007 (Louis XIII / Super Cognac series). Since early 2014, the cooperation and negotiation of long term deputy has not yet reached consensus, leading to major problems in the cooperative relationship.

Since the first cooperation between the two parties in 2007, the French Rémy Martin's strategic deployment in China officially started. In 2007, the French Rémy Martin is a just a niche brand in Asia. Huanfa has made every effort from the beginning of their cooperation.

Before 2007, the sale of Remy Martin in China was miserable. Huanfa used a lot of manpower and resources to help Remy Martin expand marketing channels in Asia and made them a great success in wine marketing. From 2017 to 2019, Rémy Martin terminated the contract with their distributors from Beijing, Shanghai and Fujian and promised to pay compensation in 2017, then Rémy Martin requested all the retailers to terminate the contract before the compensation for 2017 was settled.

Huanfa Company has to negotiate for compensation and other issues. What is worse is that the French Rémy Martin ignored their partnerships and informed Huanfa that the dealer contract has been terminated, and the authorization of the distributor in China of Louis and premium series has been cancelled immediately.

Rémy Martin's behavior of kicking down the ladder is embarrassing. Firstly, it undermines the credibility of a multi nation company. It is embarrassing to act evil in behind. Secondly, Remy Martin is full of "parallel imports" in Asian market outside the legit distributors. Remy Martin needs to make a reasonable explanation to its official agents.

There is an old saying, "Blessings do not come in pairs but accidents do". Remy Martin, this family-controlled company is replacing its executive management, is it positive news or negative news? It is beyond people's knowledge. It is unreasonable that they made money from China market but abandoned their partners.

Does Remy Martin feel any guilt? They broke faith and they are insincere, made fatal mistakes. Hope Remy Martin can seriously rethink and do not let their business partners down.