Suntory Holdings Limited, based in Osaka, and US based Beam Inc. have announced that they have entered into a definitive agreement whereby Suntory will acquire all shares of Beam in a deal worth $16bn. The acquisition, which will bring together Beam’s Courvoisier Cognac with Suntory’s Louis Royer Cognac, amongst other famous brands, is expected to make it the third largest supplier of premium spirits in the world, with a stated aim of becoming the global leader in distilled spirits. Wasting no time on its expansion plans, it is reported that Suntory have subsequently made a bid to buy Whyte & Mackay whisky which has been put up for sale by fellow drinks giant, Diageo. Competition concerns by the UK Office of Fair Trading forced Diageo to make this sale following its takeover of United Spirits. One therefore has to question the motive of Suntory in making this move as they may now be heading for a run in with the OFT themselves. So many cognac houses have been bought up of late it is always a concern to see the control of one of the big four moving to the Far East. Monopolies of this size cannot be good for the cognac industry however we are in no doubt that our own House, Hermitage, will survive.
Author: Bev Appleton
Hermitage Export Success takes us to VINEXPO 2014
Hermitage Cognac is found in many countries including the Middle East and Russia but this year Thailand has taken its first full container shipment of our second brand, Siécle d’Or, 10 and 20 year old cognacs. The 6000 bottle shipment is available at all of the Thai Duty Free shops and outlets and we are expecting a further order from them later this year. Demand for our Hermitage and Siécle d’Or Cognacs, with age statements, continues to grow as customers seek greater levels of individuality so, for the first time in the company’s history, we will be exhibiting at VINEXPO 2014 in Hong Kong in May. The exhibition is held in Bordeaux and Hong Kong on alternate years and is regarded by most industry professionals as the world’s biggest wines and spirits exhibition. We will be launching new products and presentations at the show and hope to be attracting buyers from Singapore, Malaysia, Indonesia and South Korea as well as the key China market.
Age Matters – Chivas agrees with Hermitage
There is a very definite correlation between the Chivas Brothers’ view of producing a great spirit and our own. Three or four years ago the whisky producers launched the ‘Age Matters’ campaign which challenged consumers to ‘Look for the number. Know the age. Know whisky.’ The campaign was based on research conducted worldwide which found that over 90% of consumers believe that age is an important indicator of quality and 89% stated that they actively look for an age statement when buying. ‘Numbers on Bottles’, as an ethos, was pioneered by Hermitage Cognacs in the late 1990s. We wholeheartedly agree that customers associate age with quality and in their quest for luxury cognac with individuality, they need to see numbers on the bottle. Each one of the Hermitage range is either a vintage, carrying the year the cognac was distilled, or has an age statement which gives the number of years the cognac was aged in the barrel. By labelling in this way we give our customers ultimate confidence that they are buying great quality cognac, from single estates; a message with which Chivas obviously agrees as their latest campaign ‘Great Things Take Time’ advocates.
A New Vintage Begins with British Summer Time
Longer days and lazy evenings are what we are all looking forward to now that British Summer Time has begun. This time of year also marks the end of the cognac distillation process for last summer’s harvest – strict regulations dictate that it must be completed by 31 March – and so, the ageing process for the 2014 vintage has already begun.
The longer it is left in oak barrels the finer it will be, which is why our very old vintages are particularly special. Hermitage Reaux 1954 was distilled 60 years ago and just oozes rich, dark chocolatey flavours whilst our 1914 Borderies is now a centurion and has the elegance and finesse to match.
Like the long summer evenings ahead, they really are worth waiting for…
New addition to our Range – Hermitage 1974 Chez Richon Cognac
We are very excited about our latest addition to the Hermitage range. New on our shelves this year is the Hermitage 1974 Chez Richon Cognac. Coming from Chez Richon, which is in the very heart of Grande Champagne near Segonzac, this cognac is typical of the area and exudes the qualities associated with the region. Distilled 40 years ago, it has been aged in oak barrels for 38 years and has bags of nutty flavours and a long citrus tail. This
exceptional vintage is in short supply, so enjoy it while you can.
The Cognac Process – Part 8. The dreaded Phylloxera
The prosperity from the trade with Britain in the late 1800s was sadly doomed as production rose even faster than consumption. Thousands of acres were planted with vines to supply the anticipated surge in sales. This threatened overproduction was however, overtaken by an even worse disaster. In the early 1870s the infamous louse, Phylloxera Vastatrix, arrived in the Charente and by the end of the decade it had spread to the whole of the region. The plague ended the 100 years of independence by the growers and their stocks grew even more valuable as the devastation spread. The growers tried to treat the vines with chemicals and when Phylloxera-resistant stock was found in America in the late 1880s, they simply did not have enough money to buy the new plants. So it was the better off merchants who financed some of those in trouble, replanted their vineyards with the new grafted stock and helped with advice and support. But they too had their troubles with fraudulent production devaluing the name of cognac. Eventually this battle was won in 1905 when legislation introduced the golden certificate, Acquit Jaune d’Or, which must accompany every shipment of cognac on the highway, even today.
Over the years we have collected a sizeable stock of pre-phylloxera cognacs. Our current range can be found here.
Trouble Afoot at Remy Martin?
There have been significant changes at Remy Martin over the past month. First, it was announced that their Cellar Master, of 10 years, is to be replaced in the spring and then, last week, their newly appointed CEO resigned after only 3 months in post. Although his resignation came as a surprise, it coincided with some poor company results. Stock levels have dropped by 23% since he took over in October and operating profit is expected to be down by 20% at the end of the fiscal year. These personality changes suggest that all is not well at Remy. It would seem that the Board is on a quest for a more profit driven approach, no doubt at the expense of quality. We have seen similar changes at family rivals, Frapin, in recent times. A drive to expand saw their extremely talented Cellar Master, Olivier Paultes, move on and the running of the company being passed down a generation. Their cognac may never be quite the same again.
Responsible Drinking on the Increase
The Wine and Spirit Trade Association has welcomed the latest survey of UK drinking trends by the Office for National Statistics (ONS) which shows an increasing number of people drinking responsibly. Reduction in the frequency of drinking enables customers to be more discerning in their choices and look towards the luxurious end of the drinks market. Brandyclassics has always positioned itself at the top end of this market as our customers seek exceptional quality and individuality from our cognacs and other brandies. Our own house, Hermitage, was in fact borne out of the need to supply a range of exquisite cognacs to discerning connoisseurs who demand superior quality and in 2013, our top selling cognac was the Hermitage 2000 Chez Richon.
The Charente Scene – Winter 2014
Never has the weather in an area been more important than it is in the Charente and once again the unexpected has happened with temperatures in the high teens. Indeed growth has already started to show on many of the vines before all of them have been cut back. One surprised cognac merchant reported seeing butterflies in his garden! Of course a cold spell is hoped for as this often kills off the bugs before they can do any damage. The official figure from the BNIC for cognac production last year is 13hl/hectare of pure spirit but most producers appear to be of the opinion that we will be lucky to get 10hl/hectare. Indeed that which we know about so far is quite light. It appears to lack any real body, is relatively poor quality and probably more suited for the younger cognacs than for ageing. At Chez Richon it seems likely that we may have done slightly better than average; we’re keeping our fingers crossed!
Protecting the name ‘Cognac’
The name ‘Cognac’ is protected by Geographical Indication – in other words it needs to be grown and produced in the Cognac region of France under strict conditions. Only brandy created using such a method is entitled to be marketed under the name of ‘Cognac’. But this ruling did not stop Indian based company, KALS Distilleries from producing its own ‘French Cognac Brandy’. It took a law suit, filed by the BNIC at the Madras High Court, to have the product name changed. Protection of the name ‘Cognac’ is vital to the value and longevity of the industry and one that we wholeheartedly applaud. It is reassuring to know that the regulatory body, the BNIC, is working effectively in this area.
In an attempt to further secure the future of Cognac they are also pursuing an application for the region to become a UNESCO World Heritage Site. Although this will need some serious work, if successful it will see the vineyards of Cognac being recognized as sites of extreme importance alongside iconic locations such as the Taj Mahal and Mont-Saint-Michel. The rules governing the use of the term ‘Cognac’ would certainly then become better known worldwide!