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Category: News

Cognac Houses Should Be Different, Not Follow The Crowd

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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

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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

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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?

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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

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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.

Sending Christmas Gifts to America

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We know how popular brandy is in North America by the number of Americans who visit our site. Last year the value of cognac sales to the USA grew by over 5% whilst in some countries, cognac imports fell. Particularly popular are our vintages where the year of distillation is printed on the label. They make unique and thoughtful gifts to celebrate anniversaries or birthdays.

As you ponder over presents for your American friends this Christmas, try adding some of our cognacs and armagnacs to your list – no one will be disappointed. It takes just 7 days to deliver to the USA* – but don’t hang about, all of our cognacs and armagnacs with age statements are in limited supply.

* Please refer to our Terms & Conditions for those States which prohibit the importing of alcohol.

Corporate Christmas Gifts

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Cognac is The King of all Spirits and Hermitage Grande Champagne Cognacs sit with the greatest of all. They are not multi-blended brandies with generic XO descriptions, they are single estate cognacs aged in oak with age statements.  Moreover, they come from the top cru, Grande Champagne, where only the very finest cognacs are made. They are the ultimate reward – is there a better way to reward your staff, valued customers or perhaps even yourself this Christmas?

These are magical cognacs that have won numerous awards.  They have individual tastes, they are easy to drink, not aggressive but smooth and welcoming and they come with different ages and styles. They are Hermitage, a range of exceptional vintage cognacs from 1999 to 1900, a range that can be found in some of the world’s finest hotels and restaurants;  Golden Nectars from a past century, quite simply, Le Siécle d’Or.

If you are still in any doubt have a look at the Hermitage 1999 Grande Champagne, smooth with an aroma of mocha, coffee and roasted walnuts, or perhaps the 10 year old Grande Champagne, sometimes called the Ladies Cognac for its soft apricot style. You might be looking for something a little more individual such as the Provenance 25, a complex 25 year old Grande Champagne or the Provenance 30, a chocolate and mocha Petite Champagne that flows so well you will be wanting more before the last has gone. The Hermitage 1975 at 47% abv is a real connoisseur’s cognac and the 1914 Borderies has been described by a famous cognac writer as the finest he had ever tasted.

Prices start at £38.62 so don’t take our word for it, try them for yourself………. you will be back for more!

The Complex Aroma of Cognac

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The aroma of luxury cognac is, without doubt, part of its appeal but why is it so significant? Scientists from the Technische Universitat Munchen and the German Research Centre for Food Chemistry have found that food smells have 230 key aromas (or odourants).  The molecules that make up the odour of specific food stuffs comprise a group of between 3 and 40 odourants and it is the combination of these that mean we can instantly recognize a foodstuff by its smell before we see or taste it. The smell of butter, for instance, is created by 3 key molecules, strawberries have 12 but cognac has 36 different key odour molecules categorising it as the most complex of all foodstuffs.  This is important because the chemical codes of these odours are translated by the olfactory receptors in the nose, of which only 42 respond to food odours.  Since our senses of smell and taste are intertwined, the likelihood of us purchasing a product we can smell, which has complex aromas, is therefore greatly increased.  We can’t yet smell products advertised online but this research goes some way to explaining why aroma is so important when choosing different cognacs.

Try the theory out for yourself – our Hermitage 30 Year Old has a wonderful aroma of molasses, bitter chocolate, cardamom spice and ripe cherries whilst the Hermitage 43 Year Old has fresh straw, mangosteen, kumquats, grapefruit peel, thyme, almonds and a host of other wonderful smells  – how many can you recognise?

The Charente Scene – Autumn 2014

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A Flood of Cognac

It seems somewhat crazy that this time last year we were expecting cognac price increases to be as high as in previous years but, in actual fact, the price has held steady and may even drop. Suddenly we have an excess of very young, good cognac and distillers are seeking to find customers for unsold stocks.  So why has this dramatic change occurred? Well it is all to do with the big houses not needing to buy so much eaux de vie for their blends.  The vast Chinese markets have reduced considerably the quantity of top quality cognac they purchase. This is a direct result of austerity and anti-corruption measures introduced by the Chinese authorities. Luxury cognacs have always been seen as ideal gifts in China and the more expensive they are the better.  In the past, those presenting them have been more able to convince their bosses and business associates to continue with their services. It seems that the authorities seek transparency in the ways of doing business in China. Can’t argue with that!

 

Expensive Drinks Remain Popular….and some people have money to burn!

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Even in these times of austerity there is still money to be found for expensive tastes in alcohol.  Well, that is certainly how it would appear reading the recent news columns.  According to a Onepoll survey, the average Britain spends £49,581 on alcohol during their adult lifetime and those with really expensive tastes manage to rack their average bill up to a whopping £167,000.  Perhaps they are the customers who frequent Gigi’s restaurant in Mayfair where a cocktail, created in honour of the James Bond actress Grace Jones, retails for £9,000?  Made from 1990 vintage Champagne and 1888 vintage Armagnac, it claims to be the world’s most expensive cocktail.  A believable statement given that the bill would burn a hole in most peoples’ pockets – except that is, Paris Hilton’s.  Last week in New York the heiress to the Hilton hotel empire managed to spend £140,000 at the bar in one night – some people still know how to party!

We have some wonderful vintage armagnacs on our shelves and even though they are cheaper than a Grace Jones, we wouldn’t waste any one of them in a cocktail!