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1. Courvoisier Tribute Borderies and Hermitage 1914 Cognac

There have been some interesting new products launched this past quarter, all with interesting price tags!  Here are our thoughts on 4 of them:

Courvoisier Tribute Borderies has been released in 5 demi-johns costing £51,500 each.  This 60 year old cognac comes from a single estate in the lesser known Borderies cru and if presented bottled, works out at £1197 per bottle.  Borderies is the smallest cru and produces some very fine cognac such as our award winning Hermitage 1914.  Aged, we estimate, for 70 years this exceptional vintage can be purchased for £300 less at £895.

2. Frapin 25 yo and Hermitage 25 yo Cognac

Frapin has launched a 25 year old vintage cognac, laid down in 1988 and bottled at 41.5% abv.  With style characteristic of a Grande Champagne cognac, just 1000 bottles have been produced retailing at £160 a bottle.  Compare this with our own award winning Grande Champagne cognacs – Hermitage Chez Richon 1988 which retails for just under £100 and Hermitage Segonzac 25 year old priced at just over £100.

3. Cointreau Noir and La Grande Josiane Orange Liqueurs

Cointreau Noir is a blend of orange liqueur and Fine Champagne Cognac retailing at £39.95 for 70cl. Before you spend that kind of money though, take a look at La Grande Josiane – a subtle alliance between Bas Armagnac and orange liqueur.  An ideal combination as the lower distillation range of armagnac produces a stronger fruit flavour and to top it all, the purchase price is under £25.

4. Hine 2005 and Hermitage 2000 Cognac

The first release from their recently acquired Domaines vineyards in Bonneuil, Hine 2005 is a single estate, Grande Champagne cognac retailing at £73.95.  Quite a price for such a young cognac – compare it with our award winning Hermitage 2000 (£38.62) and Hermitage 10 year old (£48.67) – both more mature Grande Champagne cognacs, also from single estates.

The Cognac Process – Part 12. Establishment of a Cognac Regulatory Body

Many of the established growers and merchants recognised the need to establish a body to control and manage the quality and sale of cognac. Much of the preliminary work had been done before the Second World War and a great deal of de facto independence from the government had already been gained – the Charente region had been divided into crus in 1909, as a natural consequence of the system of Appellation d’Origine Contrôlée,  and  the geographical areas had been delimited by government in 1936. During the War a wine and eaux de vie bureau was created to try and protect the cognac stocks.  After the War this organisation was made official and The Bureau National Interprofessionel du Cognac or BNIC was established.  The existing Station Viticole’s cognac research laboratories were also placed under its wing and so the BNIC’s role of managing every aspect of cognac production and sales began.

Our Hermitage 1947 is a classic vintage cognac from the post war era, produced at the outset of the BNIC’s establishment.

Cognac Houses Should Be Different, Not Follow The Crowd

Cognac expert Ed Bates, speaking at a tasting in London recently, highlighted the stylistic and commercial stranglehold that the big four houses have on the industry (they have 80% of the cognac market).   In order to compete, most of the other houses “try to copy Hennessy XO because the world, or Asia, thinks that cognac tastes like Hennessy XO”.  They do have another option though, he says, which in the longer term could be more beneficial.  Making the individuality of their terroir (which includes factors such as the skill of the distiller, still, casks, cellar etc.) their unique selling point (USP) would set them apart from the competition.  As the Chinese market, which thrives on the blended generic labels, slows down the more opportunity unique products will have to gain wider recognition.  Ed Bates is convinced that concentrating on quality and what sets your cognac apart is the way ahead as this ensures that the maître de chai is in charge of style not the marketing director.  Here at Hermitage Cognacs we couldn’t agree more, we have always been clear about our USP – exceptional cognac from single estates, each with a ‘number on the bottle’ to confirm its provenance.

Alcohol Duty Escalator abolished but WSTA calls for a further 2% Duty reduction

The ‘Call Time On Duty’ Campaign, spearheaded last year by The Wine and Spirit Trade Association (WSTA), successfully resulted in the government’s alcohol and duty escalator (ADE) being scrapped in the 2014 budget.  The Campaign set out to have the automatic year-on-year tax increases abolished as they were undermining the competitiveness of the industry.  This is great news for the UK Spirits Market because since the ADE’s introduction in 2008, tax on spirits has increased by a staggering 44%.  Duty is currently calculated at a rate of £28.22 per litre of pure alcohol.  This means that for a 70cl bottle of cognac with an abv of 40%, the duty to be paid is £7.90.  This duty is then added to the cost of the cognac before VAT is calculated so in effect, the consumer is taxed twice.  For example, this bottle of Hermitage 1989 Cognac has £8.69 duty plus £14.07 VAT included in the price of £84.42.  Good cognac, which is produced in limited quantities, will therefore always be more expensive than ordinary brandy.

It will be some time before the benefits of eradicating the ADE are realised and with On Trade spirits sales down 5% in the last quarter, the WTSA are now calling on the Chancellor to go even further with his tax reforms.  Their ‘Drop The Duty’ Campaign, which calls on the government to cut alcohol duty by a further 2% in the 2015 budget, has been launched and we are right behind them!

The Charente Scene – Winter 2015 in the Cognac Producing Region

A Good Vintage?

Every year, around this time we start to get the full picture of the cognac production for 2014.  Most of the new spirit will have been distilled and placed in new oak barrels and for the first time we are able to establish both the quality and quantity produced.  Last September was dry and sunny and the grapes grew well during the year.  Despite storms earlier in the year, which affected some areas to the west of Cognac, this year’s harvest was good.  Indeed so good, it seems likely to have exceeded the big 1988 harvest.  It is expected that around 825hl of pure spirit has been produced, which in terms of bottles is around 295 million bottles at 40%, and the quality is very good with lots of fruit showing through.  Obviously the high quality will drive the price up but demand, which is not high at the moment, should bring it back down to within a few points of last year.  How nice to be able to report such good news at the beginning of the year.

Whatever will they think of next?

The whisky industry is not dissimilar to the cognac industry in many ways.  It has lots of small producers and age statements are very important to its target audience.  However, whisky producers have always been more aware of consumer trends than cognac producers and are constantly looking for new marketing routes.  But this latest idea of selling whisky in a can has to be the most unusual yet.

The most unusual presentation we have had to date is an apple in a bottle – how do they do that?

Hermitage Cognacs Awarded Cognac Grand Master

Last year we were delighted to announce the success of our Hermitage Provenance Cognacs winning Gold medals at The Cognac Masters – a blind tasting competition with an independent panel of expert judges – but our latest news is even better!  Just before Christmas we were thrilled to be announced as The Spirits Business Cognac Grand Master.  A real accolade, designed to emphasise excellence in the spirits industry, it confirmed Hermitage Cognacs as the best cognac house in the entire competition. Click here to view the entire range and judge for yourself.