HUGE GROWTH OF COGNAC SALES IN THE US

 

Cognac Sales Image Logo Icon

Cognac market sales could surpass the 6 million case volume in the USA.
Cognac continues to thrive in the USA with category leader Hennessy leading the way. Or dominating would be a more proper statement.

Depletion was 17% up in 2016 compare to 2015, with over 1 billion USD sales which is 5 times more than 2011 in the US.

Hennessy makes 1.6 billion USD sales of cognac/year/world and it is looking at beaking the 2 billion USD sales soon which would be the new high.

Remy Martin plays well as a 2nd with +9% sales and a volume of  823,000 cases sold in 2016.  Remy Martin is in contrast to Hennessy in particular focusing on non-VS qualities such as VSOP and 1738 Accord Royal, noting sales from Jan-Sept to be +15% with $431m worldwide, and interest for higher end cognac in the USA.

Courvoisier (owned by Beam Suntor) is the third-largest Cognac in the U.S., and advanced by 6.2% to 470,000 cases in 2016.

Martell (owned by Pernod-Ricard) ranked fourth, and crossed 100,000 cases last year on 6% growth after starting a come back in the USA in 2016. They had left to focus on China but ...
Cognac d’Ussé (a Bacardi brand) launched in 2012, made in 2016 +48% with 86,000 cases sold. It is produced by Cognac Otard not sure why Bacardi is not interested in Otard!

Source: ShankenNews

SHERRY CASK FINISHED COGNAC BY COURVOISIER

Cognac Courvoisier ex-Sherry Casks

Beam Suntory has launched Courvoisier Sherry Cask Finish, a rich and complex cognac which has been matured in ex-sherry casks developing additional layers of flavour. Having first matured in French Limousin oak casks for years to develop its taste, the cognac undergoes a second maturation in ex-sherry casks.

This new product is being released in duty free stores, 40% ABV, 70cl, €50.

This new product is hoping to appeal to both traditional cognac drinkers as well as malt whisky drinkers and those looking for something different.

Courvoisier Sherry Cask Finish is the first bottling in Courvoisier’s Masters Cask Collection and it is pushing the boundaries of the category.

Courvoisier is the 2nd large cognac house to get into this kind of cognac finished category, with Martell being the first with the Swift model finished in ex-Bourbon casks.

This is the 2nd Cognac finished in ex-Sherry casks. I was actually the first to release sherry casks finished ex-Sherry casks in 2014, and I actually won best cognac category with my ex-Sherry casks finished cognac in the 2016 San Francisco World Spirits Competition. Long lived these casks finished!!! Great to have Courvoisier join-in with me.

Source:  TheDrinksReport

COGNAC LOUIS ROYER BACK TO FRENCH OWNERSHIP

The Japanese Suntory, 3rd largest company in alcoholic beverage behind DIAGEO and Pernod-Ricard, had purchased Beam last year in 2014. In buying Beam, Suntory acquired Cognac Courvoisier. In a previous post I was wondering what was Suntory going to do with these 2 cognac companies since the synergies between the two was not obvious. I was guessing about selling one, but I was wondering which one?!

Suntory-Beam Logo

Well, now we know Suntory decided to sell the smaller of the 2, i.e., Louis Royer established in Jarnac in 1853, originally purchased by Suntory in 1989, when Japanese consumed a great deal of cognac.

Cognac Louis Royer Logo

Why not selling Courvoisier since they have owned Louis Royer since 1989 one may say? Because Courvoisier is the 4th largest volume maker in the industry. Perhaps it is harder to sell Courvoisier than Louis Royer too - much more money. Also, I think the ups are greater with Courvoisier than Louis Royer.

Who purchased Cognac Louis Royer?

Emperador, the largest alcoholic beverage in the Philippines, owned by Andrew Tan, the 4th richest man in the country, originally a Chinese migrant, had hoped to buy Louis Royer from Suntory. Emperador is a very famous brandy in the Philippines. The Philippines is a growing market for the consumption of cognac and this was a clean strategic decision. I guess Mr Tan offer was too low.

Emperador Brandy

Other serious buyers in France came out but their offers were rejected.

Terroirs Distillers owned by the Picard family was accepted for 100 million euro. Terroirs Distillers is know for bottling whiskies in France and Scotland with brands such as Highland Queen, Tullibardine, Muirhead's or Rum Charrette purchased recently from La Martiniquaise.

Tullibardine Whisky by Terroirs Distillers

It is possible to believe that Terroirs Distillers will have a different managerial style and objectives than Suntory for Louis Royer, and perhaps will focus less on Japan and other markets.

Source: Nikkei

COGNAC BUSINESS IS FORECASTED TO GROW IN EASTERN EUROPE

Eastern Europe is becoming increasingly a growth heaven for spirit brands as the vodka markets are loosening up to make room for other spirits. A new generation of drinkers and bartenders is opening up to western spirits and in particular but not only to whiskies from Scotland and Ireland.

The cognac sales are keeping upward sales trends with estimated sales going up +24% in the next 5 years according to a recent report from Euromonitor, says The Spirits Business.

Courvoisier in particular is working on the eastern border in Russia and Ukraine where they expect the fastest growing demands as these markets are following Russia's middle class path for success. The Czech Republic is also developing fast growing demand with other new frontiers coming up such as Bulgaria where Diageo is making quick headway with Bushmills Irish whiskey and Johnnie Walker .

Once consumers start to gain economic success their import spirit tastings is growing.

With affluent markets growth in eastern Europe Russia is expected to grow +20% its cognac consumption by 2016, and Poland is said to be the next best hit with +17% growth expected for the cognac in the next 3 years.

Russian Dolls - Matryoshka - Babushka

Source: The Spirits Business

COURVOISIER LIMITED EDITION TRAVEL RETAIL 'THE VOYAGE OF NAPOLEON'

Beam Inc launched an exclusive travel retail range from Courvoisier entitled 'Le Voyage de Napoleon" at the TFWA World Exhibition last month in Cannes. Once a year in Cannes, famous of its film festival, Cannes presents the International duty free and travel retail industry trade show in the same building they have the film festival.

'Le Voyage de Napoleon' is a collection of the brand’s renowned VS, VSOP and XO Cognacs presented in new packaging, designed to appeal to modern, discerning consumers while tapping into the growing trend towards luxury products.

Inspired by one of the most famous travellers in history, 'Le Voyage de Napoleon' celebrates the star that Napoleon called upon for luck at the start of each battle - a symbol which later became central to the design of the Légion d’Honneur, the military order established by the French conqueror and still given to celebrate excellence and honor meritorious people. 

The collection features a distinctive and opulent packaging design inspired by the journeys of Napoleon, said to be a figure intrinsically linked to Courvoisier’s rich, pioneering heritage.

Cognac Courvoisier VSOP & XO, Le Voyage de Napoleon Edition

Beam International Marketing Manager EMEA Nina Knezevic commented: "We are confident that Courvoisier Le Voyage de Napoleon will appeal to the world’s discerning drinkers as it offers Courvoisier loyalists a unique set of our key expressions across the price range, exclusive to this market."

Beam Travel Retail Business Manager EMEA Antony Kime added: "Travel retail is a unique and important channel for Courvoisier and provides a great platform to showcase the brand to a global audience. Many travel retail customers look for premium brands with a point of difference to those found in domestic markets as they make the perfect luxury gift, so it is essential that we cater for this demand."

Source: ©The Moodie Report By Colleen Morgan

LIST OF WINNERS OF THE BEST COGNAC IN THE WORLD AT THE WORLD SPIRITS COMPETITION SINCE 2000

Here is the list of cognac brands in alphabetical order that I won "best cognac in the world" at the World Spirits Competition (San Francisco) since 2000 for more than 150 USD.

. COMANDON COGNAC, XO, $150

. COURVOISIER COGNAC, L' Esprit de Courvoisier, $5000

. DELAMAIN COGNAC, Réserve de la Famille, $550

. HARDY COGNAC, Noces D'Or, $1800

. HENNESSY COGNAC, Paradis, $800

. HENNESSY COGNAC, Richard, $3500

Comandon Cognac XO

Cognac Courvoisier L'Esprit

Cognac Delamain Reserve de Famille

Cognac Hardy Noces D'Or

Hennessy Cognac Paradis

Hennessy Cognac Richard

These are cognacs for experts and aficionados of high-end lifestyles. Some world best cognacs are more affordable than others. I guess it depends on how much you value what you drink and your wallet size for sure.

Next, is the list of brands most rewarded and actively participating in the World Spirits Competition in San Francisco.

Camus

Comandon

Courvoisier

Delamain

Frapin

Hennessy

Louis Royer

Marnier Lapostole

Martell

Remy Martin

Spirits unlike wines have not been so subjected to ratings for making sales. One has to look at any wine catalogs or visit any local liquor stores to realize that wines are mostly purchased by ratings and price ranges. Perhaps spirits are not better off as most of the consumers are biased to advertising and celebrity endorsements.

Wines are like graduate school: the higher the GMAT score the more you get.

Versus Spirits are more like political candidates: the bigger the campaign budget the more chance to be elected.

Source: World Spirits Competition

New Brands, Revived Brands and The Angry Birds!

There are over 1000 brands of Cognac that have been created since the foundation of cognac about 500 years ago. There are about 400 brands still existing and many of these brands have existed for a long time, and even they have been in the same families for centuries.

Recently, new brands have come up. The main reason: the democratization of cognac, that is cognac is not anymore just an elitist old man’s drink, but now an artistic, entertaining, hype, and gucci-gucci spirit worldwide. The ascension and development of cognac brands have significantly changed and perhaps insidiously cognac is becoming a mass-marketed product like yogurt and detergent with I call the "deluxury concept".

The good news is that cognac is still made the ‘good old way’. Or at least pretty much. It is not hand picked anymore ... but this is OK. Distillation in pot stills are now longer using manual mechanism and wood or coal but computerized automated systems ... but this is OK too. Ugni blanc grapes are used 99.99% of the times instead of folle blanche or colombard ... not such a big deal.  Vineyards are using modern pesticides, herbicides, and so called proven chemicals ... Not too sure of this one. Aging, storing, selection of wood barrels, assembling, bottling, ... are still pretty much the same.

So what is so different now? A good deal of attention has been on branding & rebranding, positioning and else. Marketing is muscling in!

Five Basic Brand Strategies

1)  Therefore, new brands have been created: Cognac Alizé, Cognac Conjure... even Cognac Gucci! But more significantly, a huge number of brand extension have been launched: Hennessy Black, Remy Red, ... and Courvoisier Rose.

2)  Old brands have been revived: Bisquit, Comandon, ... and recently Mestreau from Cognac Grosperrin.

The cognac industry has seen some product line extensions with the creation of mixed drinks based on cognacs: Hpnotiq, Meukow Vanilla, ... and more recently Courvoisier Rosé.

3)  And in some clever way the know-how nested in the region of Cognac has revealed brilliant creations and business ventures using that experience for the benefits of new products: Grey Goose Vodka, Ciroc Vodka, Citadelle Gin, ... and more recently Monteru Single Brandy.

4)  Certain brands have even developped  'brand extensions' with for instance Courvoisier Edition Imperiale perfume.

Courvoisier Edition Imperiale Perfume

5) I leave you to guess what the ‘Angry birds’ could be!

angry-birds