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Cognac Sales Grow in US and China

On Trade spirit sales are outperforming beer and wine in the US, according to Nielson. The steady growth was driven by cognac, Irish whiskey, tequila and single malt scotch. Cognac sales led the way with an impressive 31.1% in volume growth and 36.8% in value being reported during the last quarter. Clearly cognac’s popularity in the US continues to burgeon. China has also recently posted positive figures. Spirits imports registered growth in November 2016 representing a 41.8% volume increase and a 77.9% value increase compared with November 2015. Brandy was credited with being the driving force behind the upturn – yet more good news for the cognac industry.

The Charente Scene – Winter 2017

Christmas is always a time in The Charente when the end of year figures are important, both financially and commercially, to assess the sales and market growth. In a way, the Christmas lights and festivities in the town mean more to its main industry, cognac, than they do to its people since the holiday period is only for two days and very few people take extended holidays. However, cognac is by far the biggest industry in the town and the prosperity of the people depends very much on the success of the industry.

Over 90% of all cognac produced is exported to other countries. It is estimated that value gains over this last year will be 2.3% higher and volume gains 3.6% higher. Remy Martin and Martell were the biggest winners in the market with sales growth over the previous year of 15.15% and 13.99% respectively. The biggest loser was Courvoisier who posted a 3.7% decline in growth. Christmas celebrations this year should have been relatively joyous in the town as it prepares to take on the whisky and white spirits market.

Why Chill Filter Cognac?

Non-chill cognacPernod Ricard has launched the first Martell non-chill filtered cognac. Chill filtering is a process routinely employed by the larger cognac houses. It is a means of clarifying the appearance of the drink as it forces the spirit and water to mix more quickly and effectively. (The effect of mixing spirit with water can be seen when water is added to whisky as it often becomes cloudy). Young, mass-produced cognacs need to be reduced with water quickly to prepare them for market so chill-filtering is a useful tool – although it is only effective on spirits with an abv of less than 46 degrees. The temperature of the cognac is reduced to between -10 and +4 degrees to assist reduction and a fine absorption filter is also used to take out very small particles. This filtration reduces haziness but also captures some of the esters and fatty acids which are produced during the production and ageing process. Most experts claim that this filtering affects the flavour since some of these esters and fatty acids form into congeners (flavouroids) which add flavour. We do not chill filter at Hermitage Cognacs as all our cognacs are reduced naturally or over a very long period of time.  Take our Hermitage 1917 for example – distilled 100 years ago.

The Cognac Label

Brandyclassics MDEvery bottle containing alcohol must have a label showing clearly what is in it, including the quantity and alcoholic strength. Most producers of alcoholic drinks are controlled by a professional organisation who regulate what can or must be stated on the label. The cognac label is no exception and in some ways cognac is controlled more rigorously than other wines and spirits.

The professional body responsible for cognac is known as the Bureau National Interprofessionel du Cognac (BNIC). It is a private, state-backed organisation that not only controls the labelling of cognac but almost every other aspect of its production including production areas (crus), grape varieties, wine production, distillation and ageing. It also controls the distribution, sales and duties of every bottle produced.

Hermitage 1975The labelling requirements for a bottle of cognac require the producer’s name and under that the cru may be added and the descriptor “COGNAC”. Modern, generic cognacs are heavily blended with cognacs coming from a wide range of producers and crus so the cru is often omitted from most modern labels. However smaller houses, who produce single estate cognacs, usually state the cru e.g. Grande Champagne or Petite Champagne. Only occasionally do producers state a cru other than the top two but sometimes the term Fine Champagne may be seen. This is used if at least 50% of the cognac in the bottle comes from Grande Champagne and the remaining from Petite Champagne. “Made in France”, with the address of the producer or negoçiant, must be included and age statements, such as vintages, can be used with approval.Hermitage 1975 Cognac label

At Hermitage Cognacs we also add a back label that helps our customers understand more about the cognac they have chosen. This label includes details such as where the cognac was made, how it was distilled and aged and its individual aromas and flavours. Also, in the case of a vintage cognac, it shows the bottling date. This is important as it tells the customer how long the cognac has been aged in the barrel.

Last, but not least, every bottle of spirits over 40% alcohol by volume carries a UK government duty stamp that is applied in France and can be crossed checked with the UK shipping documents issued by the BNIC.

Read more Technical Topics on our Brandy Education page.

Drinking Cognac at Christmas

Drinking CognacThere seems little doubt that alcohol can, in moderation, be good for you. It has been said that drinking cognac provides a greater benefit than other alcohol and scientists tell us that it increases antioxidant levels. These are beneficial substances that keep harmful free radicals from damaging our cells. According to a study published in “Cardiovascular Ultrasound” in 2008, this sort of damage can increase the risk of clogged arteries, heart disease, cancer and vision loss. Drinking alcohol may also help limit the risk of Type 2 Diabetes but beware, excessive consumption can increase the risk of cancer, heart disease and liver disease. Of course, moderation is the key, excessive consumption of any alcoholic beverage should be avoided.

NelsonBrandy has been around a long time and traditionally has had many uses as it was available in large quantities from the French and Spanish naval vessels.  During the battles, which these navies fought, brandy was often used as an anaesthetic or antiseptic and in one particular extreme case as a preservative.  It is said that a whole barrel of brandy was used to preserve Admiral Nelson’s body until it could be returned to British shores. Hardly moderation but Nelson would probably have been pleased that he came home in a barrel of fine French brandy.

Tasting Cognac

During an average drinking year, we knock back all manner of different beverages without giving thought to what we have tasted, or when.  Each drink we consume provides us with a completely different experience.  Most are as memorable as getting out of bed each morning but none are as exciting as the sheer thrill provided by a vintage brandy. Even when we drink a glass of fine brandy do we ever give any thought as to the glass and aroma of its contents? So often we hear the words “it tastes the same out of any glass” but the experience of using the correctly glass can be hugely different. Specialist glass manufacturers devote years of research to finding the right shape for our enjoyment, perhaps we should use their experience and try to understand more about tasting cognacs?

cognac glassesThe ideal cognac or indeed spirit glass has a wide bowl which tapers at the top, we call it a tulip shaped glass. More than 50% of the enjoyment of any brandy is in the aroma which subconsciously enhances the taste. Having the correct shaped glass allows the cognac to be rolled around the bowl releasing aromas which are then concentrated at the top of the glass. This maximum sensory effect of the glass’ contents can then be enjoyed.

Filling the glass to just over half way up the bowl is sufficient to allow the cognac to be gently rolled around the sides and reach as far up the glass as possible thereby exposing the greatest surface area. It is important however to remember that cognacs, like other spirits, are strong. Unlike wine they should never be swirled around the glass as this releases the alcohol which then sits on the surface of the brandy and blinds the very important aroma.

Of course drinking the golden nectar is the all-important test of appreciation. Taste is improved slightly if the cognac is not cold but brandy warmers are completely unsuitable. They are shaped to accept a brandy balloon glass, which is not good for tasting, and they also drive the alcohol away from the brandy thereby spoiling the taste. Indeed, the ideal temperature of cognac for tasting is room temperature. Remember, we don’t take large mouthfuls of brandy as we would do with wine.  A small mouthful quickly reaches body temperature allowing the flavours to permeate all over the mouth.  A well-known cognac writer once said that he “chewed” the spirit, it was good advice since this helps to distribute the liquid around the mouth and determine the level of balance. Tasting great cognacs such as our Hermitage 43 Year Old or 1914, to name but two, in this manner would give a lasting memory of the skills and generations who have devoted their lives to making the King of all Spirits.

Read more Technical Topics on our Brandy Education Page.

Armagnac’s Back In Fashion in The Americas?

armagnac's back in fashionArmagnac has never been as popular as cognac, or as expensive, but that may be set to change, particularly in The Americas. Quebec’s liquor board, SAQ, reports a 7.5% growth in armagnac sales so far this year compared to 3% growth in cognac. First produced in the 16th century, armagnac was the original French distilled spirit. Not as polished as cognac, armagnac is only distilled once, but it is low-key and laid back and has a really complex, full-grape flavour. This rusticity and small-scale production give it true authenticity which is helping to increase its appeal. An expected shortage of Scotch whisky has seen customers look for an alternative and armagnac seems to fit the bill better than most. At the bottom end it is extremely cocktail-friendly and at the top end, it provides many collectible vintages. Few other spirits offer aged, rare expressions at such reasonable prices and perhaps most importantly, the armagnac industry has room to grow. Perhaps armagnac’s back in fashion and about to come of age?

The Bottle Story – What’s in a Cognac Label?

We are used to seeing unusual designs of cognac bottles and carafes to catch the eye (many of which have been featured here in The Bottle Story) but recently some big producers have taken to using a bespoke cognac label, designed by a well-known artist, to make their products stand out on the shelves. Hennessy, in particular, must feel that their products are in need of a boost and American tattoo artist Scott Campbell has created the latest artwork. Its purpose, presumably, is to attract younger customers who, in the last 10 years, have embraced the tattoo culture and made it the latest ‘must-have’. Another of Hennessy’s labels was designed by the Italian duo, Carnovsky. A far more colourful affair, this was probably commissioned primarily for the American market. Many of the big houses’ products contain young, blended cognacs which can be difficult to differentiate by taste. These labels are certainly eye catching and will probably serve their purpose of making the bottle stand out from the crowd. Here at Hermitage we take a different approach. Our product, its label and packaging is designed to exude luxury but in a classical, tasteful way. We know that our customers buy Hermitage for the fabulous flavours and individuality of each cognac so gimmicky labels that might look good on the bar, or the sideboard at home, wouldn’t only convey the wrong impression, they’re just not necessary.  Take a look at our cognacs here.

Cognac Must Ditch Generic Branding

Recent figures released by the BNIC appear to give nothing but good news for the cognac industry. Record shipments in 2015 saw an increase of 8.5% by volume and 21.3% by value. However, over half of total cognac sales were of the youngest VS variety and volumes of older cognac sales fell. Some of this was undoubtedly due to the ’China Effect’ but there are other factors too. Strict rules on the production of cognac can restrict product development. Regulations do protect traditions but they can also reduce competitiveness. VS and VSOP cognacs often find themselves vying for shelf space with other fast growing spirits, such as rum.

1965 Vintage Cognac

According to Hine’s CEO, there is a need to diversify the product by stepping away from traditional blends and focussing on ‘micro-provenance’. Our own David Baker  agrees, calling for a radical revaluation of marketing tactics and a move away from generic branding to offer greater individuality (See The Spirits Business, 6 Sep 16). He adds that we must be careful not to lose the traditional values of cognac – a sentiment echoed by the Global Director of Courvoisier who said “I don’t think there has been a lot of communication about how cognac is produced …. and why it is worth paying more for it”. Very much our view. Driving sales along the volume market route may provide short-term success but will threaten the uniqueness of the product. For cognac to remain a luxury spirit, a fresh industry approach based on increasing value not volume sales is required – take a look at our cognacs – all have age statements.

The Charente Scene – Autumn 2016

Major Houses Require More Vines in The Charente

Cognac regionHennessy, with sales to America alone of 4 million cases of mainly VS and VSOP a year, have successfully pressed the Bureau National Interprofessionnel du Cognac (BNIC) for an increase of 1% in new vine plantings. This increase is the biggest ever approved by the Bureau and represents an increase of around 800 hectares. The vines are to be planted next spring and will be ready for their first harvest in three years’ time. With yields of around 9.5 hectolitres per hectare (hl/ha) it means that growers will be able to produce a further 7,500 hl of pure spirit. The crop this year looks as if the quality will be high and although there was some hot sun earlier, the quantity available should be up to the current maximum level permitted of 9.5 hl/ha. Good news for the cognac industry in The Charente Scene this autumn.