D'USSE $275 XO EXPRESSION LAUNCHED IN MAY 2014

D’ussé Cognac XO comes after the VSOP.

Two years after launching the D’ussé Cognac brand with a VSOP quality, Bacardi is extending its product line depth by applying an upscale brand stretch.

Note the technical terms, i.e., upward and downward product line stretch, product line versus SKUS, product line width versus depth versus length.

When creating a luxury line or luxury brand, one has to always consider these issues of brand stretching. Now the important matter is: where to start from?

. Middle, then down, followed by up.
. or High, then middle, then low.
. or lower, then middle, and then high.

It depends if the brand carries a true luxury authenticity, the process should be Higher, middle and then lower.
If the brand is building on popularity and milking democratization for the sake of building Brand Image, then going from low to high make sense, i.e., business model of 'masstige'.

D’ussé XO, produced at the Chateau de Cognac (Otard) by maître de chai Michel Casavecchia, is made from a blend of eaux-de-vie aged at least 10 years. Bacardi introduced the XO to a small group of journalists and mixologists in New York last last May. Bacardi plans to cover 11 states in the USA by the end of the summer.

Bacardi has sought to position D’ussé as a modern spirit that can draw drinkers from both inside and outside the Cognac category, and says the VSOP ($45) has succeeded on that front in the early going.

Cognac D'Usse VSOP by Bacardi

With D’ussé’s new XO, Bacardi has taken an aggressive stance in staking out the brand’s ultra-premium credentials, price-positioning it significantly above the XO Cognacs of competitors like Hennessy, Rémy Martin and Courvoisier.
Retailing at $275 a bottle.

Source: dusse.com

COGNAC-EXPERT.COM IS BEING AWARDED FOR ITS CONTRIBUTION

One of the media which has made the greatest impact in our lives in the past 10 years has been social media. It is incredible to see that people, habits and patterns might have changed because of this.

Social media has become a modern way to communicate, and a few people have made a tremendous contribution in the cognac industry using social media. A few Internet and Social Media are particularly interesting in relations to cognac:

. The Bureau National Interprofessionnel du Cognac (BNIC) or Cognac Bureau, the French government agency covering the legal and associative work around the industry, i.e., www.cognac.fr.

Screen Shot of Cognac.fr Website October 2014

. CognacFans.com, Cognac-World.com, etc.

. but more noticeably Cognac-Expert.com.

The cognac-expert.com is the 'go-to' website to read interesting aspects and news about cognac and the Cognac region.

Last year in September 2013, the BNIC recognized cognac-expert.com as the 'best writer of the year' during the ceremony of the annual banquet and auction 'La Part des Anges'.

GROWING INTEREST FOR COGNAC IN AUSTRALIA

Increasing interest for premium spirits in Australia is driving consumer towards cognac. Cognac category in Australia is growing at 10 per cent a year, with Martell reaching 30 per cent market share in Australia. The two fastest growing products of the 5 SKUs in Australia are Cordon Bleu and Martell XO according to Martell Brand ambassador in Australia.

Martell is also benefiting from a large diaspora of wealthy Asian people who had fled Hong Kong in the 1990s in fear of Hong Kong becoming a Chinese province. Soon to be a 300 years old brand in 2015, Martell is getting organized to celebrate the anniversary. Martell was established in 1715 and it is the oldest of the 4 big cognac houses, i.e., Remy Martin (Estd. 1724), Hennessy (Estd. 1765), and Courvoisier (Estd. 1835).

Martell is not the oldest house. The oldest cognac house is supposed to be Augier Frères & Co founded in 1643. The Augier Cognac House was acquired by Martell I think in the late 1970s. Martell now and then makes a limited production of Augier cognacs.

Augier Freres XO

Source: The Shout Australia

COGNAC IS THE MOST INNOVATIVE REGION TO CREATE NEW SPIRITS

The cognac region is famous for its brandy. However, it plays a major role in creating the future mega brands which will serve the spirit industry. Some of these future will have cognac associated but many will only infuse talents and know-how. Here are some examples.

G’Vine
Produced by the 'fame' Eurowinegate in Cognac (www.eurowinegate.com) managed by the talented Jean-Sebastien Robicquet. The concept is to make GIN with grapes.

Why is G'Vine an outstanding innovation? Because they are using distillation knowledge to make a superior product using a premium source. They are not the only one to be successful in Cognac to make GIN. Citadelle Gin is another brand of gin made in Cognac using a more traditional neutral grain base.

G'Vine, an Innovation from the Cognac Region

Jean-Marc XO Vodka and X-Rated Liqueur
Jean-Marc XO Vodka (www.jmxo.com) is a premium vodka distilled in the Cognac region of France by Jean-Marc Daucourt and owned by the Campari Group (www.camparigroup.com).

Jean Marc XO, an Innovation from the Cognac Region

X-Rated (www.xratedfusion.com) was launched in 2004 in the USA by award-winning spirits creator Jean-Marc Daucourt and Todd Martin, the former Allied Domecq North America President, who are the principal owners of the brand. X-Rated is also now owned by Campari Group.

X Rated Liqueur, an Innovation from the Cognac region

Why are Jean-Marc Vodka and X-Rated Liqueur outstanding innovations? Because Jean-Marc Vodka was one of the first Ultra premium vodka and X-Rated was among the first to make it 'pink' for the girls.

Cîroc
The concept is to make Vodka with grapes, it is using grapes from the region of Cognac (ugni blanc) and from the region of Gaillac, north of the Pyrenees (mauzac blanc).
Cîroc (www.ciroc.com) is considered a vodka because they distill the product at 96% ABV and do not age it. The brand belongs to DIAGEO (www.diageo.com) one the largest spirits group in the world with other iconic brands such as Johnny Walker. Since 2007, Sean "Diddy" Combs became the face of the brand and sales have dramatically increased.

Ciroc Vodka, an Innovation from the Cognac region

Why was Cîroc an outstanding innovation? Because it used grapes to make vodka using excess inventory, and it did not pay a celebrity but gave a stake in the company to improve performance.

Monteru Single Brandy
Monteru (www.monteru.fr) was inspired by the single varietal wines which took by surprise the traditional blending wine production from Europe. The concept is simple. Making brandy from single selected grape varietals. The end result is a delightful brown spirit for wine aficionados. Monteru comes in 4 varietals including Cabernet, Chardonnay, Merlot and Riesling. In 2011, Monteru was awarded the title of double gold medal and "best in Show" at the ISW (Internationaler Spirituosen Wettbewerb) in Germany (www.spirits-award.com) and was recognized as one of the best innovation in the world for spirits by the Tasting Panel Magazine (www.tastingpanelmag.com).

Monteru Single Grape Brandy, an Innovation from the Cognac Region

Why is Monteru an outstanding innovation? Because it does not dilute the know how of cognac making but instead magnifies it by using it for the sake of creating something like a 'single malt' applied to the brandy, with the most familiar and popular grapes in the world. Bridging the impossible gap between 'wine' and 'spirit' geeks. A new category is born made of a cross over identity.

Hpnotiq
Hpnotiq liqueur is an alcoholic beverage made from fruit juices, vodka and cognac.
It was created in New York in 2001, and sold to Heaven Hill Distilleries (www.heavenhill.com) in 2003. It is 17% ABV. It started as a urban drink but it is now marketed as a women drink.

Hpnotiq Liqueur, an innovation from the Cognac region

Why is Hpnotiq an outstanding innovation? Because it serves various markets using salient characteristics. Give what the customers want. 

Giorgio Gucci
Monsieur Gucci is regularly promoting the brand in the US. The fashion icon signs every single bottle of the collection.
The company behind these bottles is Emperor’s Brand: They are present on the American spirits market since 2007, and introduced premium vodkas to the market: Emperor, Versailles, Winter Palace and Imperial Exclusive.

Cognac Gucci, an Innovation from the Cognac Region

Why is Cognac Gucci an outstanding innovation? Because it shows cognac is a true 'luxury' as much a luxury watch or luxury suit. Next Cognac Rolex or Cognac Chanel or Cognac Bentley, etc.

Alizé Cognac
This brand was very visionary when in 1984 it was introduced in the USA to target the urban audience. A joint-venture between a French supplier and Kobrand Corporation, a reputable importer/distributeur in the USA.

Cognac Alize VS, an Innovation from the Cognac region

Why is Alizé an outstanding innovation? Because it was among the first cognac brand to focus on the urban market.

Belle de Brillet Poire Williams
Liqueur is an original blend of cognac from the Cognac Brillet and the essence of Williams Pears (Poires Williams). This liqueur is the fruit of a perfect blend of very flavorful “Poire Williams” produced mainly in the east of France, fine Brillet Cognac Eau de Vie from the heart of the Cognac region, and a “special plus,” an ingredient whose secret is cautiously guarded by Maison Brillet.

Why is Belle de Brillet an outstanding innovation? Because pears and cognac is a brillant idea and they are the best at doing it.

Belle de Brillet, an Innovation from the Cognac region

Brenne Whisky
Brenne is a Single Malt Whisky that is being harvested, distilled, matured and bottled in the Cognac area. According to the makers, this Whisky is smooth, approachable and contains a hint of fruit. It contains spice notes from the malted barley and is balanced with the sweetness from Cognac soaked oak barrels.

Brenne Whisky, an Innovation from the Cognac Region

Why is Brenne an outstanding innovation? Because it simply used the cognac know how to make another brown spirit. 'Qui peut le plus peut le moins'. Brenne is not the only whisky made in Cognac, Bastille 1789 is also from Daucourt and is very good too.

Grey Goose
Grey Goose is a premium brand vodka produced in Cognac, France. It was originally founded by Sidney Frank before it was sold to Bacardi (www.bacardi.com)in 2004. François Thibault (H. Mounier) developed the original recipe for the vodka in Cognac, and he is also responsible for Jacques Cardin Cognac still in Didney Frank's portfolio.

Grey Goose, an Innovation from the Cognac Region

Grey Goose (www.greygoose.com) was created as an audacious surprise to counter balance the vodka industry with a 'premium' vodka. Hence, it was made in France. About 40% of premium vodkas are now made in France following in the footsteps of Grey Goose. Grey Goose is perhaps the most emblematic of Cognac's innovation not related to cognac.

Why is Grey Goose an outstanding innovation? Because it sensed the opportunity for premium vodka and made symbol of itself.

In conclusion, if someone asks: "what is the difference with Cognac and Armagnac and Scotch and Tequila and etc.?"

They are many differences but one of them is the innovations and creativity embedded in the region that has no match in the world.

CHINA WILL HAVE THE WORLD'S LARGEST WINE AND BRANDY PRODUCTION PLANT OWNED BY CHANGYU

China’s oldest and largest winery, Changyu Pioneer Wine Co., is to build an international “wine city” in Yantai, Shandong province, at a cost of £600m.

The project, covering an area of 413 hectares, will be home to a national wine research institute and wine production centre.

Changyu Wine City

It will also include grape planting areas, an international wine trading center, a European-style village, and two high-end châteaux.

The wine production centre will cover an area of 220,000 square metres, making it one of the world’s largest wine and brandy production plants.

Changyu Wine City

The city – an amalgam of research, winemaking and tourism – is expected to be completed by 2016.

Changyu Pioneer Wine Co. was established in 1892, when cuttings from Bordeaux, Burgundy and Alsace were planted in Yantai.

In 2002, the company built its first French-style château – Château Changyu-Castel – in Yantai in cooperation with the Castel Group, planted primarily with Cabernet Gernischt – a red variety similar to Cabernet Franc.

It has since added a further five châteaux to its portfolio, three of which are operational.

Changyu Wine City

The other three: Château Changyu Baron Balboa in Xinjiang Uygur, Château Changyu Moser XV in Ningxia Hui and Château Changyu Reina in Shaanxi province, are expected to open in the next six months.

In 2006, Changyu collaborated with Canadian company Aurora to build the largest ice wine château in the world near Huanlong Lake in Liaoning province. It has also expanded overseas, with Château Changyu Kely in New Zealand.

Changyu Pioneer Wine Co. is the tenth largest wine company in the world.

Changyu acquired the cognac house on Saulnier street named Roullet-Fransac in 2013.

Source: www.thedrinksbusiness.com