Wednesday, August 29, 2012

Dr Dre will not have a Diamond called DIAMOND Dre, Perhaps a Cognac Dre!


It has been a while since I last heard about Dr DRE's Cognac named 'Aftermath'. I suppose Dr DRE could call his cognac 'Cognac DRE' or DRE Cognac if he wanted to but DRE will not be able to call his diamonds DREDIAMOND or DIAMONDDRE as this name has been already registered by another Hip-Hop music producer Drew Reyes, also known as “DiamondDRE”.
Dr Dre by Commondr3ads at Wikimedia Commons
Dr Dre by Commondr3ads at Wikimedia Commons
Dr. Dre has asked music producer Drew Reyes, also known as “DiamondDRE,” to cease and desist using “Dre” because of potential confusion for consumers who may wonder: "is it DRE as Dr DRE?".

An attorney representing Dr. Dre, whose legal name is Andre Young, recently sent a letter to Reyes asking him to not emphasize the “DRE” at the end of his name, but “to always present his mark – both online and in the brick and mortar world – as Diamonddre or DIAMONDDRE." The attorney emphasized that they werelooking at resolving this issue amicably among fellow musicians.

Reyes said in an interview with AllHipHop.com that “I REFUSE to let any person, regardless of whom they are or their status, to bully me; I don’t know if it’s because of some apprehensive complex you [Dr. Dre] may have, whether it’s cause you’re afraid another artist named ‘DRE’ may outshine you or become fans of another artist’s work besides your own. But I will tell you this…my name is DiamondDRE”.

Reyes attorney, Theresa V. Johnson,  responded to Dr. Dre’s letter as such: “We respectfully ask that you leave Mr. Reyes alone as his business venture is in no way a threat to ‘the world-famous music producer, rapper and musical entertainer Andre Young.’”




Tuesday, August 28, 2012

Could Cognac Bars Be the Next Best Thing Since Experiencing Luxury is Accelerating according to BCG Report?


Experiencing versus Owning Luxury

Yearly Sales of Deluxe Experiences—from Art Auctions to Spas to Safaris—Are Growing 50 Percent Faster Than Sales of High-End Goods, Says New Report from The Boston Consulting Group.
Boston Consulting Group Logo
Boston Consulting Group Logo
The shift from owning a luxury to experiencing a luxury is accelerating—and many providers of high-end goods such as watches and handbags may soon miss out on a huge growth opportunity if they don’t get smart about their customers’ new inclinations.

That’s one of the key findings in Luxe Redux: Raising the Bar for Selling of Luxuries, the latest report on global luxury markets from The Boston Consulting Group (BCG.) The research behind the report shows that experiential luxury now makes up almost 55 percent of total luxury spending worldwide and, year on year, has grown 50 percent faster than sales of luxury goods. Even in brand-obsessed China, where personal luxury goods serve as a strong badge of status and success—with sales surging 22 percent annually—experiential luxury dominates, growing at 28 percent each year.

The business of luxury experiences is by no means limited to exclusive art, safaris, and spas. Some hospitals offer deluxe accommodations—with butlers, specialty chefs, and marble baths—while some airlines are starting to offer private suites, and some luxury high-rise apartment buildings are featuring movie-screening rooms and virtual-golf facilities.

Four trends are driving the move toward experiential luxury:
  1. The dictates of demographics. In developed economies such as the U.S., Japan, and Europe, consumers who drove the luxury boom in the 1990s are now beginning to retire. They have reached a stage in life when they no longer need nor want to own new “things”—so they are primary customers for experiential-luxury offerings.
  2. Changes in consumption patterns. When middle-class consumers in rapidly developing markets become more affluent and first buy into luxury, they are drawn to long-lasting goods with reputable brands. But over time, they tend to move from accumulating material goods to buying new experiences—and this is reflected in recent growth rates for experiential-luxury spending.
  3. Generation Y does things differently. Members of Generation Y—today’s late teens and twenty-somethings—tend to define themselves more by what they have done and experienced than by what they own. They are drawn to instant pleasure and lavish experiences—helicopter snowboarding in Alaska or a weekend shopping spree in Paris, for example.
  4. Quest for lasting satisfaction. Consumers indicate that they are seeking a greater sense of purpose and satisfaction, and luxury experiences often fulfill those wishes more strongly than do purchases of luxury things.


Leading providers of luxury goods are starting to catch on—albeit cautiously. Examples include:
  • LVMH, one of the world’s largest luxury companies, is developing its Cheval Blanc hotel franchise; there is already one Cheval Blanc hotel in Courchevel, a French ski resort, and another in the Maldives, and LVMH plans to open locations in Oman and Egypt in 2012.
    Cheval Blanc Hotel LVMH
    Cheval Blanc Hotel LVMH
  • BMW, the German automaker, was one of the first high-end carmakers to turn the experience of waiting for delivery of a new car from frustrating ordeal into fun-filled activity: buyers of BMW’s Mini Cooper cars receive new-owner updates about the assembly of their car and its journey from the factory.
  • IWC, the Swiss watchmaker, which has a watch museum at its headquarters, promotes its Pilot’s watches in its flagship store in Hong Kong by offering customers a “ride” in a flight simulator with an extra-large screen and surround sound.
But BCG argues that such efforts are too few and too hesitant. The shift toward experiential luxury will continue, and, providers of deluxe products must—at the very least—keep pace with this important consumer trend.

Source: BCG Press Release: a copy of the report can be downloaded at www.bcgperspectives.com.

Monday, August 27, 2012

What Are the Best Cognac Ratings or Competitions? Anthony Dias-Blue, Paul Pacult, and Other Competitions in Review


------------Other Spirit Rating Organizations and Events -------------

Wine & Spirits in the US (www.wineandspiritsmagazine.com)or Wine & Spirit in the UK (www.harpers.co.uk) are very wine oriented.

---> MicroLiquor Spirit Awards www.microliquorawards.com
MicroLiquor Spirit Awards is the World’s First Spirits Competition for Small Brands - Brand/Label sells less than 50,000 9-liter cases annually. MicroLiquor Spirit Awards sponsored by Flow Design provides professional and confidential feedback on product quality, packaging and design, and overall value.

Liquor entrepreneurs, brand managers and marketing professionals have the opportunity to gain entrepreneurial thought and insight to their brands while enjoying the benefits of competition. 

This competition is very targeted and its focus is justified. Brands from large corporations may have an advantage in financial resources. Competitions are expensive and often connected to mass-media organizations which may have biases in evaluations. Hence, this competition may be a stepping stones for smaller brands and/or a niche player type of rating.
MicroLiquor Spirit Awards Logo
MicroLiquor Spirit Awards
BLUE’s Reviews www.bluelifestyle.com
Anthony Dias-Blue offers a rating through his magazine the Tasting Panel Magazine in the USA. The Tasting Panel Magazine offers several monthly ratings, as well as an annual review of these ratings. Meredith May, the other co-editor of TPM rates as well as additional writers. Mr Blue is involved in many competitions in the US: World Spirits and Wines Competition in San Francisco . He is also the executive director at the New York World Wine & Spirits Competition.

Anthony Dias-Blue is a highly recognized wine & spirits journalist who originally made his name as the wine and spirits editor of Bon Appétit, one of the largest food publication in the United States. 
BLUE LIFESTYLE Anthony Dias-Blue Logo
BLUE LIFESTYLE Anthony Dias-Blue Logo
He also broadcasts on radios, KFWB and KLSX FM in Los Angeles and on WCBS radio in New York.  He is a frequent contributor to Decanter, Robb Report, Celebrated Living, Virtuoso Life, and C Magazine. Mr. Blue is the author of The Complete Book of Mixed Drinks and its companion, The Complete Book of Spirits. 

PACULT’s Reviews www.spiritjournal.com
F. Paul Pacult has a tremendous reputation in the spirit review and he publishes his ratings in his members only Spirit Journal. Look for the annual review edition in particular. His reviews also appears in the Wine Enthusiast Magazine. He is increasingly involved in mixology and bar events mostly on the North-East of the USA, such as the Ultimate Beverage Challenge.
Spirit Journal Paul Pacult
Spirit Journal Paul Pacult

Wine Enthusiast Magazine publishes a magazine and other media to promote the appreciation of both wines and spirits. It is headquartered in New York and founded in 1979. Currently, spirits reviews are provided by F. Paul Pacult, who does tastings in a controlled environment. Results are given a point score. www.winemag.com

This concludes our review of worldwide spirit ratings.
But before I end this review I would like to add one more competition which is notable in France but in France mostly: Concours Général Agricole.  In addition, I think this competition is mostly rating wines and other agricultural products such as cider, pasta, sausages ... even animals such as cows or pigs, but also cognac. In perspective, in 2012 they gave over 2000 medals to wine brands versus 9 brands of cognac. So it stays mostly a wine focused competition. 
In a way there maybe something wrong with cognac: it is 100% made in France, but almost 100% consumed and rated outside France.
I note that Louis Royer received a Gold medal for its VSOP in 2012.
Concours General Agricole Logo
Concours General Agricole Logo

Sunday, August 26, 2012

What Are the Best Cognac Ratings or Competitions? The Competitions in New York


The Competitions in New York, USA

There is no surprises that New York be the place for an international spirit rating event. The question is which one as there are several and it is not clear which event is dominating the scene. 

--->  FIRST, the New York World Wine & Spirits Competition www.nyworldwineandspiritscompetition.com
This event is like a mirror image of the World Spirits Competition in San Francisco, but with wine too. Perhaps this is explained by the fact that Anthony Dias-Blue is the executive director in both places. This competition occurs at the same time and is associated with the Bar and Restaurant Trade Show.
New York Wine and Spirits Competition Logo
New York World Wine and Spirits Competition Logo
 The +:  New brands trying to get traction in the USA have to start in New York. It is not a law but a recognized rule of thumb. This show is tied up with key trade partners such bars and restaurants (called on-premise in the trade) it makes sense to participate to this show to jump start the introduction of new products. The idea is that you are getting 2 birds with 1 stone.

 The -: this is a new competition pretty much over-shadowed by the World Spirits in SF, and also it is including wines where spirits usually play the second roles.

--->  SECOND, the New York International Spirits Competition www.nyispiritscompetition.com

This competition is different in that the judges are spirits buyers from the industry, which gives a nice twist in the sense that most other competitions classically employs experts. Experts may be more representative of the experts’ tastes rather than the trade or consumers. Another interesting aspect is that the competition is grading similar products and categorizing them also based on pricing. This rule is perhaps even more significant for cognacs as one may find for instance XOs at 70 euros and other at 150 euros, or Extras at 150 euros and other at more than 1000 euros. In other words one may find that a highly rated cognac at 100 euro may be more realistic than a highly rated cognac at 1000 euro.
New York International Spirits Competition logo
New York International Spirits Competition logo
The +: the rating method allows for new facets and perhaps originality. A spirit rating competition only.

The -: this competition does not have the national coverage and support found in the other competitions.

Saturday, August 25, 2012

What Are the Best Cognac Ratings or Competitions? The International Spirits Challenge


International Spirits Challenge www.internationalspiritschallenge.com
The International Spirits Challenge is based in the UK, and it is very respected since 1995. The competition is founded on a rigorous and independent judging process, which serves to encourage the high calibre of spirits, designs and campaigns entered into the competition each year. Receiving more than 1,000 entries from nearly 70 countries worldwide makes the ISC is a truly global competition. It is supported by most of the world’s leading spirits producers as the international standard for quality and excellence.
International Spirits Challenge Logo
International Spirits Challenge Logo
The ISC has evolved over recent years to recognize four key areas of the industry; Tasting, Design & Packaging, Marketing and Retailer Awards.

Marketing Awards: The aim of the ISC Marketing Awards is to recognize and celebrate the invaluable impact marketing has on creating and sustaining brand value which will ultimately improve profitability. Judges are drawn from marketing and advertising agencies to assess how well the campaign met the brief, overall brand strategy, evidence of innovation and creativity, positive results and statistics and return on investment.

* Best Launch Campaign
* Best Advertising Campaign
* Best Digital & Social Media Marketing Campaign
* Best Experiential Campaign
* Best PR Campaign

The International Spirits Challenge is home to some of the finest palates in the world. Each of the judges must have demonstrated their skill and knowledge in spirits before joining a specialist panel, and include master blenders, master distillers, importers, distributors, buyers, consultants, journalists, authors and independent experts.

The +: it is a well respected competition in Europe and the USA. For some reasons, some people do not trust the competitions in the USA, so they would rather leave it to foreigners. So it is a good choice for a balance of US/Europe ratings.

The -: Results are in November.

The UK have two leading competitions. I explain this by:
. Great Britain is an original and historical large purchaser of wines from France, and then the rest of Europe.
. GB is a large producer of whiskies, Gins, Beers, Ciders, etc..

Wednesday, August 22, 2012

What Are the Best Cognac Ratings or Competitions? The Los Angeles International Wine and Spirits Competition and the Beverage Tasting Institute.


The Los Angeles International Wine and Spirits Competition www.lawinecomp.com
This competition was initially for wine only and founded in 1939. In 2007, it began receiving entries for spirits. Awards are provided for gold, silver, and bronze medals. In 2009, there were 199 entries with 179 awarded medals.
Los Angeles International Wine & Spirits Competition Logo
Los Angeles International Wine & Spirits Competition Logo
The +: situated in the middle of the capital of world entertainment. Well organized event, business friendly, ... increasingly referenced. Great longevity since 1939.
The -: the spirit rating is clearly an off-spring of the wine event, and one could say the spirit part of the event is in its introduction stage. In fact, the prices and logos state “Wine & Spirits” but website and other media references do not include the word ‘spirit’ or ‘spirits’, neither in presentations (photos ...) which proves it is starting and not their focus. As a side note they have an olive oil competition integrated in the event so it should be called: ‘Las Angeles International Wine, Spirits and Olive Oil Competition’. I think they should also do coffee, tea and why not beer!

The Beverage Tasting Institute www.tastings.com
The Beverage Testing Institute is based in Chicago, Illinois and was founded in 1981 with its initial focus on wine but later branching into the world of spirits and beer. They use a dedicated tasting laboratory in order to create consistent results and minimize external distractions. Each periodic tasting is conducted at the same time of day under identical conditions. The panelists are selected from the professional world of restaurants and publications under the leadership of director Jerald O'Kennard. Not all spirits are given a rating. Those of sufficient merit are awarded a point score between 80 and 100.
Beverage Tasting Institute
Beverage Tasting Institute
The institute seeks to produce "fair and impartial wine reviews for consumers." Buying guides have appeared in All About Beer, Epicurious.com, International Wine Review, Wine Enthusiast, Restaurant Hospitality, The New Yorker Magazine, and Wine & Spirits.

The +: highly recognized in the trade and used to promote to consumers. So it is working and it is clearly an official source. The spirit division is very seriously carried out and broken into departments: the whiskies, the bandies, the eaux-de-vie, ... Just from the fact that they divide and organize ratings of spirits by family and rate them at different times and per family says a lot. I like the scientific ‘kind of’ style this organization has. I like the fact that they clearly mentioned that not everyone gets to win something. No idea if it is true but it sounds good.

Tuesday, August 21, 2012

What Are the Best Cognac Ratings or Competitions? The Internationaler Spirituosen-Wettbewerb ISW (www.mundusvini.de)


The case of the Internationaler Spirituosen-Wettbewerb ISW (www.mundusvini.de)

This competition was started in 2004 in Germany, and it is a subsidiary of Meininger Verlag in Neustadt, one of Germany's oldest specialist publishing houses and run by the 4th generation family. It specialises in wine and beverage publications for different target groups.
Internationaler Spirituosen-Wettbewerb Spirits Competition Germany
Internationaler Spirituosen-Wettbewerb Spirits Competition Germany
A special ISW supplement with a print run of more than 100,000 copies reports in detail on prize-winning spirits and their producers and is included with all the wine, beverage and hospitality trade magazines published by Meininger Verlag.
The ISW judges are renowned experts from wine & spirits institutes, producers, retailers and restaurateurs who have daily experience with spirits.
---> The +: this is a well organized competition that seems very professional.
---> The -: mostly from Europeans for Europeans, and in particular Germans.

Monday, August 20, 2012

What Are the Best Cognac Ratings or Competitions? The International Wine and Spirit Competition (IWSC) www.iwsc.net


The International Wine and Spirit Competition (IWSC) www.iwsc.net  is the most famous competitions has it has been seriously organized and supported by the majors of the industry for the longest. I think also it benefits from having been established in London by a British and a German person in 1969 so it has benefited from a solid organization and structure from the foundation. Europeans have taken a serious lead on this judging/rating a long time ago. The statistics and numbers are huge 30,000 submissions, 80 countries, 250 judges coming from all over the world, chemical analysis, and etc... But it is hard to decipher how much of this is dedicated to spirits. I guess about 1000 submissions for spirits.
International Wine and Spirit Competition, IWSC
International Wine and Spirit Competition, IWSC
This competition is also greatly enhanced by its world partner and media support mostly from the Drinks Business magazine, but also by its pertinent participation in the world’s leading trade exhibitions, such as Vinexpo, ProWein and Vinitaly.

Plus the IWSC has a huge experience in getting media coverage and offers promotional supports trough their networks of retail/industry connections. It is a powerful organization - no doubt. Far more powerful than the 

World Spirits Comp. in San Francisco presented above, and far older too.

---> The +: they are powerful and their name means business in the alcoholic beverage industry.
---> The -: lack of legitimacy for the spirits ratings in particular as this is fundamentally a wine competition. I think it is and it will always be a wine event in priority!

Breaking News: IWSC and The Tasting Panel Magazine have just announced they would cooperate in 2013 for the organization, ratings, submissions, media and etc. from and for the USA. This news is quite significant has it shows that the 2 leading international competitions will be cooperating to improve the outcomes. Better to share something big than keep it all small.

Sunday, August 19, 2012

What are the Best Cognac Ratings or Competitions out there? Starting with the San Francisco World Spirits Competition


There is no real official and compelling cognac ratings or competitions out there. However, the World Spirits Competition in San Francisco attracts the largest number of cognac submissions.

This World Spirit Competition www.sfspiritscomp.com is carried out in San Francisco, it is not that old in comparison to many wine events. It was started in 2000 by Anthony Dias-Blue. Mr Blue is a highly recognized wine & spirits journalist who originally made his name as the wine and spirits editor of Bon Appétit, one of the largest food publication in the United States.
San Francisco World Spirits Competition Logo
San Francisco World Spirits Competition Logo
He also broadcasts on radios, KFWB and KLSX FM in Los Angeles and on WCBS radio in New York.  He is co-owner and Editor-in-Chief of Tasting Panel Magazine and is a frequent contributor to Decanter, Robb Report, Celebrated Living, Virtuoso Life, and C Magazine. Mr. Blue is the author of The Complete Book of Mixed Drinks and its companion, The Complete Book of Spirits. Interestingly, Mr Blue is the executive director of the New York World Wine and Spirits Competition, which is another representative competition that I am presenting below, but also the San Francisco World Wine Competition.

The World Spirits Competition in San Francisco rates about 1200 entrants annually from 60 countries on average (exactly 1215 in 2012 from 60 countries) with "blind" tastings involving panels of expert judges selected each year from the spirits industry including world-renowned mixologists, spirits buyers, and media from across the United States.

The +: the earlier in the year the better. Consumers prefer recent/this year winners than last year winners. WSC is in March and results are in April. this competition is seriously done, executed and rather representative. All spirits competitions are subjective. This is the best competition in my opinion.

The -: judges are not international judges for the most part and rather represent the experts in the USA. From my experience I can say that not all world experts are the same. It would be nice to see international experts in the panel to offer a more worldly view, mostly when the competition is called World Spirits etc ... Little appearance/representation in international trade events, for instance, Vinexpo, etc... They do appear in the Wine & Spirits Wholesaler of America trade show which is the equivalent of VINEXPO but for the USA only.

Saturday, August 18, 2012

REVIEW OF SPIRITS COMPETITIONS AND RATINGS


There are many spirits competitions and ratings in the world. From the local wine & spirits fairs to the international event organized with selected judges highly regarded for their experience and know-how in the industry, and also independent raters who are ratings spirits in their own media such as Dias-Blue or Pacult.

I will only reference the spirit events which are internationally representative and commonly used as reference by the industry trades and and also by consumers. The concept of rating spirits is often an offspring of ‘Wine ratings’ which they are 100 times many more ratings for. Most of these events/competitions were originally wine competitions which opened up to spirits or encouraged spirit submissions for ratings.

Ratings are not as influent for spirits as they are for wines. High ratings may help but how much they help is insignificant in the scheme of things. On the other hand ratings can be explain more than 50% of the reasons for why a wine is successful.
Wine Consumers and distributors are hand-in-hand rewarding high ratings.
The spirit trade is more influenced by the advertising budget or celebrity endorsement for instance.

Reality Rule 101:
. Take the most influent raters, have them rate a wine 100/100 points and this wine sales will skyrocket running out of stock regularly. If the wine is decent it will sustain high sales. If the wine is bad it will not sustain growth. But the head start from the rating will be noticeable.

. Take an outstanding wine and rate it low or without rating at all, it will have to sell cheap and it will not get any consumer followings and no trade support.

. Take the most influent raters, have them rate a spirit 100/100points and little may happen.

. Take an outstanding spirit and rate it low or without any ratings, this spirit will not rise and disappear from the market.

They are exceptions to these rules but these are the rules!
In my next posts, I will review the most prominent competitions in the world.

Global Cognac Market Review and Forecasts: Negociants are Suffering with Cash-Flow and Stock Investments


Traditionally, cognac forecasts and market results are published in August in anticipation of the coming holiday seasons and winter months which regulate the sales of brown spirits. Brown spirits including cognacs are usually consumed during Fall/Winter seasons, but lately this pattern has changed.

---> Cognac is more mixed now, more of a standard/preferred drink rather than an after-thought spirit, and also more of a lifestyle beverage than a season drink.

So in recent years even in July the sales of cognac have been high. 'Companies and Markets' (companiesandmarket.com) provided a report in 2009 looking at three things (1) the growth until 2007, then (2) the sudden decline of cognac sales in 2008, and (3) forecasts till 2014. Now, in 2012 we can tell they made a good prediction anticipating that the decline would not last very long.

Further, Companies and Markets 2009 Reports stated:

- In 2008, global Cognac sales fell for the first time in over 10 years, declining by 2.76% to 11.57m nine-litre cases. This follows a record year in 2007 when sales hit 11.9m cases.

- Today the Cognac industry derives roughly one-third each of its sales from Western Europe, the US and Asia. Bureau National Interprofessionnel du Cognac (BNIC) CEO Jerome Durand says: "This leaves the Cognac industry very well-balanced to manage the risk, even though it is a global crisis."

- Camus la Grande Marque CEO Cyril Camus says: "Cognac is one of the few truly global products. It has a very high image and appeals to consumers everywhere... there is a very strong stable international base to Cognac consumption. That is a very reassuring factor in times like this."

- The Cognac industry has counter-attacked Scotch's rise in many markets with a number of initiatives aimed at providing a point of differentiation and product story, and is ultimately taking the initiative back from the single malt producers.

- Asia-Pacific was the best-performing market overall in 2008, up 3.9%. Six of the top growth markets are located there, and it is an important region for travel retail, the third fastest-growing market.

- Cognac was the only relevant imported spirits category to show sales growth (as opposed to shipments) in China in 2008, driven mainly by the Martell brand. Cognac sales rose by 6.6% to 1.56m cases, according to The IWSR.

- Cognac in China continues to perform strongly in its traditional Chinese entertainment channel, which Scotch finds hard to penetrate. The Cognac category is also more profitable than Scotch, with VSOP retailing at a 50% premium to 12-year-old Scotch brands. Moreover, the ultra-premium segment in Cognac (XO and over) is much larger than its Scotch equivalents, such as Royal Salute or Johnnie Walker Blue. All this makes the category more attractive than Scotch at importer, wholesaler and retailer levels.

- Pernod Ricard CEO Pierre Pringuet confirms: "Martell in China is booming. Consumption for Cognac is very well-established in China, so it means that when people are less keen to buy foreign products, they will probably re-focus on their traditions and Cognac is much more in a position [to serve that] than Scotch whisky."

- Cyril Camus: "From a depletion (shipments from wholesalers to retailers) point of view, I believe we have touched the bottom now, and in some markets actually, we are starting to see a pick-up again in sales from what were very low volumes in the first quarter. The worst is past us."
Image to Illustrate Cognac Sales in 500 years
Image to Illustrate Cognac Sales in 500 years
The above figure only illustrates the argument about the strength of the cognac industry when looking at long-term growth. It is not meant to be accurate but just descriptive.

This months figures from the BNIC show:

. From August 2011 to July 2012, the global sales of cognac totaled 2,2 billions euros or a volume of 168,5 millions of bottles. This 12 months period showed an increase of +4,3% sales compared to the previous year. Now, Asia accounts for over 1 billion euros with a sales volume of 61,8 millions of bottles.

. North America increased by 1,9% with 51,8 millions bottles. The sales of cognac in Europe declined by -1,5% with 47,1 millions bottles sold, with particular decreases in both Germany and the UK.

The increasing prices of cognac will continue because:

> June to July 2012 = mildew crisis over the vineyards of cognac: I predict 10% less production than potential production = + prices of cognac.
> Raising cognac vineyards prices = + prices of cognac.

> Premiumisation of cognac: cognac is more presitigious than Scotch and the current antagonism with Scotch fuels cognac to become more and more premium = + prices of cognac

> Raising costs of producing cognac [multiply by] negative business/political environment in France = + prices of cognac.

> XO cognac being regulated at 10 years rather than 6,5 years in 2014 = + prices of cognac.

> Fewer producers owning more and more production resources = + prices of cognac.

> Annual worldwide increase consumption of cognac = + prices of cognac.

> Asian calling cognac 'an XO' and general growth of consumption of cognac in China: it is said than they are over 2 million new consumers of Cognac XO in China every year = + prices of cognac

> Some say a decreasing euro will increase cognac base prices - I hope not! = + prices of cognac.

Hence, the difficulty is to buy bulk cognac in the cognac stock market, then sell it as a branded product, and at the same time be able to purchase bulk cognac at a higher price than the previous time and to keep doing this continuously. There is a huge cash flow problem where margins are eaten away and do not allow for much money to be re-invested but used to purchase up in the next price increase. In addition, one negociant needs to be patient as a huge amount of stock is required to (1) blend effectively and (2) improve younger qualities with older qualities.

Sources:
Companies and Market China Cognac Report 2009 Forecasts 2014 (UK)
www.BNIC.fr

Friday, August 17, 2012

Bartender We Need a VS or VSOP ... New Music Video Starring M.I. & Naeto C.

New video from Hennessy Artistry programme. Bartender - The Official Hennessy Artistry 2012 Music Video Starring M.I & Naeto C directed by Clarence Peters. 1) Not sure if it is a video or a commercial. 2) What I found new in this video is that they are a many empty bottles. Could be a subliminal message!

Meukow Celebrates its 150th Anniversary (1862-2012)


The two brothers Auguste-Christophe et Gustave Meukow went to France in the late 1900s to source cognac for the Tsar of Russia. Well they never returned to Russia and created Cognac Meukow in August 1862. The Maison Meukow changed hands a number of times until in 1979 Michel Coste acquired it.
Cognac Meukow  Founders Brothers 1862
Cognac Meukow Founders Brothers 1862
This month the Coste family celebrates 150th years of Cognac Meukow but at the same time the success of their family business named Compagnie de Guyenne. The family has completed some outstanding milestones worth celebrating which includes:

. Compagnie de Guyenne established in 1977 by Michel Coste (father).

. 2012 one of the largest cognac negociant (80% of their cognac is used for Meukow). My estimation No.7th ... with Distillerie de Matha and Cognac Brugerolle.

. Michel Coste coming up in 1993 with the panther logo for Meukow though thought provoking at the time now proves to be the start of todays' modern school of thought towards 'different is better', sex appeal and seduction. Some new ideas at the time now commonly used in the cognac industry.

. Diversity of business: 42 millions d'euros, 50% en cognac, 25% en brandy, 15% en pineau, 10% in other products such as liqueurs and other spirits.

. Employs 84 people. Not an easy thing in France!

. Renovation of the headquarter 'rue Pascal-Combeau in Cognac' into a sensual cognac experience for visitors named 'from amber to light'.

. Philippe Coste (son) President of Compagnie de Guyenne since 1996, and President of the Bureau national de l'interprofessionnel du cognac (BNIC) in 2012.

. Recent agreement (July 2012) with Puy Gaudin in jointly making a brand of Pineau des Charentes taking 30% of the total market of Pineau des Charentes (total is about 100,000 hecto/year).
This can only be explained by a strong family support and ties in the industry. Michel and Colette Coste (parents), and their 3 children Philippe Coste, Marie-Laure Brugerolle, Celine Viard, and son-in-law Claude Brugerolle plus Francoise (spouse of Philippe). 

Feliciations / Congratulations !
Cognac Meukow 150 years Anniversary
Cognac Meukow 150 years Anniversary
Sources: