HENNESSY IS BEING SAVVY IN THIS DIFFICULT TIME

With cognac market falling in China by 19% to 1.5 million cases last year due to Chinese government tightening on conspicuous behaviors, cognac houses are re-focusing on the USA, which remains Cognac’s largest market by volume at approximately 4 million cases.

In addition, the cognac houses are introducing a great deal of innovations with a premiumization and launching limited edition: Remy Martin VSOP Cask Finish, Hennessy VS designed by Shepard Fairey, etc.

In particular, Hennessy is coming out of this turbulent times with some good growths and prospect of more growth estimated at about +5% in the coming months. These results come from specifically 4 continuous efforts:

1) Deep pocket spending on advertising & promotions.

2) Months after months, campaigns after campaigns rigorous pressure on the young Legal Drinking Age (LDA) consumers fueled by Hip Hop artists and , but not only, as Hennessy has widen its appeal with celebrities such as Manny Pacquiao, and vintage legends such as Sir Malcolm Campbell and his iconic Bluebird.

[youtube=http://www.youtube.com/watch?v=sb2x87zq0qI&w=560&h=315]

 3) Dedicated segmentation, target, and positioning plans aiming at precisely reaching specific personas:

. NAS campaigns for instance, with African American targets.

. Manny Pacquiao for instance, with Hispanic targets.

. Sir Malcolm Campbell for instance, with mainstream markets.

4) Continuous innovations. Open mindedness and innovation are 2 different things but innovation requires open mindedness. Hennessy is thoroughly embracing creativity and setting new standards n the industry. Hennessy has dominated the cognac industry for 100 of years. How impressive!

What the future holds? A growing Hispanic population consuming cognac.

Source: Shanken Daily News

HOW USING CONSUMER TRENDS TO LAUNCH NEW SPIRITS?

Launching new products can be a big revenue driver, but it can also be a big cost to companies. The beverage industry is well-positioned for new products that capitalize on consumer trends, but there are several things companies should keep in mind when launching new beverage products, a panel of experts said during a recent Beverage Industry webinar.

Old metal iron with new tag

1st Key element = Value:
Consumers are willing to pay more for products they find valuable and that make their lives better.

2nd Key element = Identifying Innovators and Early Adopters:
These consumers are looking for new products and if they like them they quickly tell others.

3rd Key element = Understanding Millenials:
They look for details and unique points of differentiation.

4th Key element = Planning beyond the Launch year.
A great deal of companies fail has they plan for resources just for the first year and cannot keep the momentum year 2. Example, lesser media exposures, lesser cash flow to replenish the shelves, etc.

Source: SmartBlogs

The Cognac Region is Regularly Offering New Products and Innovations, but Perhaps Less Than Other Spirit Regions

The cognac industry is not known for being very innovative and creating prolific new and updated products as an industry which is remarkable for launching and creating new products but there are new products and/or new packagings, presentations being launched regularly. In cognac, a great focus is on consistency. Consistency and routine make for little variations of the products. True cognacs and authentic production call for extreme patience and repetitious activities. Fast-moving consumer goods, even hi-tech do not resonate well with cognac. Short cuts and short sighted people do not live long in cognac. However, there has been a great deal of wonderful new products being created in Cognac country using quality and patience for the sake of excellence. My short list here is not exhaustive but just illustrative of two iconic examples.

Cognac-Paradis B&B Benedictine

1) Herb liquor and Brandy =  B&B, for Bénédictine and Brandy created by Bénédictine Liquor in the 1950s, using their famous liquor and cognac.

Cognac-Paradis Hpnotiq

2) Blend Exotic Fruit Juices, Premium Vodka and Cognac = Hpnotiq created by Distillerie Merlet & fils in the early 2000s.

There are more than 500 brands of cognac. These cognacs come in many different presentations. There are a great deal of artistic influences needed for creating a new and different packaging.

Cognac-Paradis Cognac Bowen Napoleon

3) Cognac Bowen elegant and "old world" presentation.

Originally, this cognac was created from the love and inspiration for a woman named Mrs Bowen.

Cognac-Paradis Remy Martin Coeur de Cognac

4) Remy Martin has come up with a great deal of updates and new ideas in the past 5 years. My favorite Remy Martin' s new idea is the Coeur de Cognac concept, particularly with this presentation. I find it very elegant and refreshing, not ostentatious, young and pepy, probably very women-friendly.

Hennessy Cognac is by far the most creative and innovative cognac brand with so many new ideas and a constant attention for innovation and artistic inputs. We have covered many of these new products in Cognac Paradis.

Today, the Distillerie Tessendier & Fils launched their new Cognac Du Buisson XO. The distillery owns a vineyard in the local area of Du Buisson in Borderies. Traditionally, Cognac Du Buisson uses "cognacaise" bottles but this nice decanter and classy box is very enticing. Cognac Du Buisson particularity is to offer a cognac range mostly composed of Borderies' Cognacs aged from 12 years to 70 years.

Cognac-Paradis Cognac Du Buisson XO