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Rémy takeover rumoured

Share price rises despite poor performance

Rémy Cointreau is enjoying a stock market lift after rumours of a takeover bid by Brown-Forman – the makers of Jack Daniel’s and Southern Comfort – raised the group’s share price by 3%. The group has been badly hurt by a Chinese government crackdown on extravagant spending, with sales of the company’s flagship cognac falling 32% in the final quarter of last year, following a 30% drop in sales during the third-quarter.  It is reported that the offer was flatly refused and it is difficult to see how a family run business would be prepared to lose control of it, at any price.  In China cognac is regarded as a status symbol and our evidence shows that in time, the Chinese will find a way around the new ruling.  Remy should and will, we believe, fight hard to keep their independence as the market for luxury goods in China will inevitably return to being a highly lucrative one.

 

Big Cognac Houses Struggle in China

Phthalate ruling may change

All of the big cognac houses have seen their profits in China fall lately.  This is thanks not only to the Chinese government’s restrictions on luxury gifts but also to its refusal to accept cognac containing even minimal levels of phthalates.  The latter has become a real problem for the industry as most aged cognacs have passed through phthalate-laden plastic pipes at some point in their lives.  The levels allowed in China are currently far more stringent than the rest of the world but according to a member of the BNIC Board, this is set to change.  There is real optimism that by the end of this year the Chinese phthalate regulations will reflect the European ones.  Undoubtedly this will boost the waning Chinese market, which the ‘Big Four’ in particular continue to pursue, as the supply chain will become more accessible.

 

Hermitage Provenance Cognac

Launched recently at VINEXPO 2014 in Hong Kong, our new Hermitage Provenance Cognac range was designed specifically for the Asian market.  All have age statements and bear the hallmarks of luxury, single estate cognacs.  The range currently comprises 6 and 10 year old in our trademark ‘Exception’ bottle,  20 year old in the ‘Helios’ carafe and 25 and 30 year old (pictured) in our new ‘Eden’ carafe.  Following extensive research, the range was launched in a new style of packaging, featuring  the iconic Charantais still, which encompasses the Asian desire for recognisable and regal presentation boxes.

Do colour and sound affect taste?

The environment in which you experience a wine has a profound effect on how you will perceive it to taste, according to Charles Spence, an Oxford University professor. His research proves that lighting and music can act as digital seasoning for food and wine.  A red room helps to bring out the fruity notes in the wine whilst in a green room the fruit profile disappears and the wine appears closed.  Although music has less of an effect on taste perception than colour, Spence is convinced that different types of music influence our taste buds – colourblind tasters experience huge changes in flavour perception when different kinds of music are played.  Interestingly wine and spirits are described in a similar way to music, as having different ‘notes’. Citrus flavours are seen as high notes, while wood and chocolate are low notes.  The Professor has worked with Heston Blumenthal at The Fat Duck Experimental Kitchen for the last 12 years and dining there is now a complete experience that takes colour, sound and environment into account.  He is now hoping this will inspire others to do the same.

A classic cognac with citrus ‘notes’ is Hermitage 1989 and Hermitage 30 year old is our most popular cognac with chocolate ‘notes’.

The Charente Scene – Summer 2014

Storms hit Charente again

Once again the weather has played a major role in the Charente. A big storm has blown up over the region and caused substantial damage to the vines, in some cases stripping them of all their leaves. Fortunately, much of the Grande Champagne region has been spared with just the extreme western side affected. Some vineyards have lost 100% of this year’s harvest whilst others have only lost 10%. It seems that there was a safe corridor from north to south where little damage was done but producers are already counting the cost of the storm.

One of the effects of bad weather is a reduction in supply which ultimately creates an increase in price. The slow down in sales to the Far East has reduced the pressure on prices so far this year and so, with the holiday period approaching, the weather is unlikely to have a major effect now.  However, some reports of price increases have been received so we’ll keep our fingers crossed!

Hong Kong success opens the door to Chinese market

Hermitage Cognacs went down a storm at the recent VINEXPO Exhibition in Hong Kong with many visitors stating that they were “the best cognacs they had tasted at the show”.  Launching our new Provenance Range, we were delighted with the feedback and the interest shown by all our visitors.

There clearly is still a market for luxury cognacs in China and both the products, and specifically designed packaging, were highly acclaimed.  Although most enquiries came from Hong Kong and China as expected, we also received potential customers from distributors in Taiwan, the Philippines, Singapore and India.

World War 1 Cognacs – Centenary ‘toasts’ available

A secret hotel cellar in Worcestershire has been discovered, revealing amongst other treasures, two bottles of Hine 1914 Cognac.  A wonderful find, you might think, in 2014 the 100th anniversary of the outbreak of The Great War.  Due to be auctioned shortly, they have been valued at £3000 each which is surely a little optimistic.  WW1 Cognacs are, of course, great vintages to have but there are still a few alternatives available.  Our own Hermitage 1914 Borderies Cognac is very special indeed with an incredible spectrum of flavours from toffee to walnuts and provides excellent value for money.  Referred to as “his most prized bottle” by Olly Smith, TV Presenter and Journalist, it retails at under £900.  Similarly priced is our Hermitage 1917 Grande Champagne Cognac.  A little drier to taste, it provides an equally memorable, luxury experience.

So, if you’re looking to provide WW1 Vintage Cognacs we can supply some of the very best.

Great gifts from Hermitage Cognacs

TV Presenter and journalist, Olly Smith,  tastes plenty of cognacs in the course of his work and last month he recommended our Hermitage 1999 Cognac as “The Daddy of gifts – as complex and satisfying as a Dickens novel.”  He also had some other gift ideas too – “…why not hunt a bottle from his birth year from a top quality range at Brandyclassics which presents bottles in impressive boxes?”

http://www.mailonsunday.co.uk/home/event/article-2649801/OLLY-SMITH-Choose-Daddys-sauce-The-old-man-wants-one-thing-Fathers-Day-not-pair-socks.htm

70th Anniversary of the D Day Landings

On 6th of June 1944 over 130,000 Allied soldiers landed on the beaches of Normandy in the biggest sea-borne invasion in military history. Known as Operation Overlord, the Allied mission was clear – to retake France from the invading Germans.  Landing on 5 beaches designated with the codenames by which they are still known today: Utah, Omaha, Gold, Juno and Sword, the soldiers stormed the coast from Saint-Marie-du-Mont to Ouistreham, taking thousands of casualties.  This was one of the most audacious and heroic wartime operations of the 20th Century and 80 days later the Allies had successfully repelled the German forces.

Many celebrations are taking place this week to mark this momenetous occasion and we can offer some exquisite French toasts to match.  We have a wonderful cognac aged in oak barrels for 70 years and two vintage armagnacs distilled in 1944.  If you prefer something produced more locally, take a look at our range of calvados, all from Normandy:

https://www.brandyclassics.com/calvados.html

 

Calling all Facebook and Linked In Users

This month we are offering a 5% Discount Code for use on our Website to anyone who Likes our Facebook page or Follows us on Linked In.

All you have to do is ‘Like’ us or ‘Follow’ us, the links are on the Home Page, and then e mail us at cognac@brandyclassics.com to let us know.  We will then send you a unique Promotion Code to use on our website by 30 June 2014.