Category: News from the Brandy Houses

With a burgeoning desire for cognac, two of the largest players in the market are putting plans into place to ensure they can keep up with the ever increasing global demand.  Hennessy has acquired a plot on the outskirts of Cognac where it will build an additional bottling plant aiming to increase production from 60 to 120 million bottles by 2030.  Not to be outdone, Remy Martin are investing a further 30 million € into its production site at Merpins with the aim of increasing their manufacturing capacity by 30% over the next 5 years.  These expansions must send alarm bells ringing as the increase in capacity will diminish cognac stocks more rapidly, increasing price and forcing the big houses to blend younger and younger eaux de vie.    As a consequence, age-statemented, single estate cognacs, such as Hermitage, will become more sought after than ever.

After less than a year, Larsen Cognac is changing hands again.  It has been purchased by Altia, the leading Finnish wine and spirits company in the Nordic and Baltic countries, an area where Larsen has historically positioned itself as a key cognac brand.  The interim owners, Remy Martin have brokered a deal which hands over all aspects of the brand, including the industrial and commercial assets and the necessary inventories to continue operating Larsen as a going concern.  This has to be good news for the industry as the big houses eradicate much individuality by blending hundreds of cognacs together.  It was thought that Remy originally bought Larsen for its stocks but since they only make cognac from Fine Champagne, only some of the eaux de vie was useful.  Now, everyone is happy it would seem.  Altia get a great cognac brand; one with a history reaching back to 1926 and a unique range of products. Remy, on the other hand, have acquired some interesting cognacs to bolster their own stocks.  Most importantly though, Larsen is no longer in the hands of a big house so may yet retain some character and independence.

Perhaps one of the last Grandees of the cognac industry, Frapin, is expanding its vineyards to keep up with the demand in China. Frapin, best known for its famous Chateau Fontpinot which is set in some of the best area of Grande Champagne, has increased its vineyards by 11% taking the total area to 240 hectares and sufficient to provide more than 2500 hectolitres of eau de vie.  Probably their best cognacs originate from their cellars in Segonzac where they hold many vintages but are best known for the wonderful cognac named after their famous chateau.  It is their prized possession, retained after the family feuds in the 1970s when they severed their connection with Remy Martin and ceased to supply them with their cognacs.

Yet another big cognac house is up for sale.  Hine Cognac, which was founded in Jarnac in 1763, celebrates its 250^th Anniversary this year.  The name Hine originates from an Englishman who married into the family in the early 19^th century and the House has remained in the hands of Hine descendants ever since.  Abiding by the founder’s motto ‘less is more’ they have continued to produce relatively small quantities of very high quality cognac.  The current owner, CL World Brands, has recently relinquished its stake in Jamaican Appleton Rum and the whisky producers Burn Stewart Distillers fuelling rumours that their parent company, CL Financial, are in financial turmoil.  Although there is no news yet of whom the buyer may be, it is a real shame that they are being forced to sell Hine under these circumstances.  So many of the smaller cognac houses have been snapped up by the ‘big four’ resulting in quality, single estate stock being lost to the blending process which is used to meet the ever growing demand from Asia.