HUGE GROWTH OF COGNAC SALES IN THE US

 

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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

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