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The Charente Scene - Summer 2020

Summer 2020Around this time of the year (Summer 2020) we are anxiously looking at the weather to try and determine if we are going to have a good grape harvest in September. The vines are flowering well and every indication is that we will have a bumper harvest. But where are we going to store all the new cognacs when they are distilled? There is simply not enough room this year as coronavirus has dramatically reduced sales by the big houses. In an industry where America alone can take over a million cases a year, world sales so far in 2020 seem to have virtually halted, with a measly 1.5 – 2 million cases sold in the first quarter. According to one of our friends in Cognac, contract sales by the big houses have, over the years, spiralled up to around 90% of their output.  This has enabled the large companies to place contract orders with producers for young cognacs which they buy and store in their own cellars.  It now seems likely that some of the big names will have to renege on their contracts with the growers and producers due to lack of storage space. However, every cloud has a silver lining. The smaller, own brand producers and negoꞔiants are now having a field day.  They are shipping smaller quantities to their smaller customers and more specialised world outlets and demand is increasing.  The current reduction in demand for cognac seems to be only affecting the mass market.