Remy Cointreau SA cut its annual sales guidance, blaming weaker than expected US demand for its high-end spirits.

The French cognac maker said it expects organic sales to fall by 15% to 20% this year. The company had previously forecast flat annual sales growth.

Remy and other spirits producers are facing a slowdown in demand for their premium drinks, particularly in the US, after sales boomed during the pandemic.

In a statement, the company said US “market conditions have deteriorated on the back of a fiercely promotional environment and a rise in interest rates that has cut distributors’ financing capacity.”

The company said a rebound in US sales previously expected in the second half of this fiscal year won’t happen until next year.