COGNAC SALES WENT 16.2% HIGHER IN 2015

The Distilled Spirits Council of the U.S. (DISCUS) says strong momentum from the whisk(e)y category drove spirits supplier sales up 4.1% last year to $24.1 billion, with volume rising 2.3% to 215 million cases.

What are the Drivers for this momentum?

1) Spirits’ ongoing premiumization trend is evident this past year

. The high end (spirits retailing from $20-$30) advanced 7.1% to nearly 3 million cases, creating $509 million in supplier revenue.

. Super-premium spirits (priced above $30) were up 6.5% to 1.2 million cases, generating $395 million.

. Combined, the high-end and super-premium segments comprised 95% of the $950-million increase in supplier revenue last year.

2) The whisky boom
In 2015, all whisky segments collectively reached more than 59 million cases with 12.3 million cases added since 2010, while generating $8.1 billion in supplier revenue.

. Whisky including Bourbon, rye, Tennessee and white/corn whiskey grew a combined 5.2% last year to 20.4 million cases (Scotch Whisky has regulatory body, Scotch Whisky Association, others have some regulatory council too).

But not just Whisky!

. Tequila made +7.4% by volume, and +9.4% by value (Consejo Regulator de Tequila),

. Cognac made the largest percentage growth with +14% by volume, and +16.2% by value (Bureau National Interprofessionel du Cognac), DID ANYONE NOTICED THIS?

Mixology and Bottle of Cognac

. Vodka made +1.8% by volume, and +0.5% by value (no regulatory body, probably will never have one),

. Rum was down -1.5% by volume and -2% by value (no regulatory body besides AOC Martinique Rhum Agricole).

3) Focus on craft-style, artisanal products benefiting both large and small producers;

4) Consumer fascination with provenance dovetailing with spirits’ authentic heritage;

5) Growth of micro-distilleries generating excitement in the spirits sector; and

6) Cocktail culture continuing to define nightlife in cities across the country.

7) Millennials of legal drinking age interest in discovery driving innovation and premiumization.

Source: DISCUSS

2015 MARKS THE FIRST YEAR COGNAC SALES REACH 4.5 MILLION CASES SOLD IN THE USA

This year 2015 for the first time cognac will reach 4.5 million cases sold in the USA says Shanken News based on recent reports from the sales and depletions reports from Impact Databank, NABCA reports and Nielsen Channels.

This results is contrasting with the sales from the economic downturn of 2008-2009. Sales have gradually regained ground since 2009, but a more noticeable growth has started since 2014.

Average sales growth is estimated at 18.5% overall in the US and 71% in control states, with the majority of sales being VS category cognacs.

Hennessy is leading the category with 64% of market share. Martell is ranked 5th with an impressive 18.5% sales growth. Salignac is a sub-brand of Courvoisier and is ranked 4th with a decreasing amount of sales (-5.7%).

Bacardi with D'Usse cognac is making growing sales since its introduction with the VSOP in 2012, and now the surprisingly expensive XO ($230) in 2015.

---RANKING OF COGNAC BRAND BY SALES VOLUME IN THE USA (2015)---
1st: Hennessy (LVMH)
2nd: Remy Martin (Remy Cointreau)
3rd: Courvoisier (Beam Suntory)
4th: Salignac (Beam Suntory)
5th: Martell (Pernod-Ricard)

Source: Shanken News Daily