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Cognac Frapin acquires more Vineyards

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.

Remy Martin Louis XIII Rare Cask

The newly released Remy Martin Louis XIII Rare Cask is so named because it has an unusual strength of 42.6%.  This may be unusual for Remy Martin but many cognacs have an abv of over 40% as the distillation strength of cognac is between 67 – 72%.  Whilst some cognacs will benefit from a higher strength it is usually only those, such as the Hermitage 1975 or 1989, which are single estate and where a smaller still, which will provide less rectification, has been used.  The Rare Cask Louis XIII is a blend of 1200 different cognacs so it is highly doubtful that such a blend will benefit from being a higher strength. Only the cask the cognac is stored in is a hundred years old so it would be interesting to find out just how old the cognac is!

Hine Cognac Up for Sale

Yet another big cognac house is up for sale.  Hine Cognac, which was founded in Jarnac in 1763, celebrates its 250th Anniversary this year.  The name Hine originates from an Englishman who married into the family in the early 19th 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.

Hermitage 25 Year old Arrives

We are very proud of our new addition to the Hermitage range as single estate Grande Champagne cognacs have become a rarity and to find a naturally aged 25 year old is very special indeed.  Cognacs that have aged for this period of time in oak casks build a level of complexity which exhibits the distiller’s style and passion for his work.  This cognac is indeed very special since it comes from the very heart of the top cru and is made by one of the finest distillers in the industry.  The complex aromas and flavours include citrus peel and dried nuts, qualities characteristic of Grande Champagne as well as guava, passion fruit, kumquats and light spices.  The cognac is currently supplied in the much admired ‘Exception’ bottle.

The Cognac Process – Part 4. The Royal Connections

By around the end of the 17th century the trade in burnt or reduced wine had become safe in that other European clients from England, Ireland and increased trade from Holland and a little from Scandinavia had created a more profitable trade than grain and the bois (wooded) areas away from the Champagnes were cleared for vine production. In the 13th century, King John, ruler of England and Western France, appointed the town of Cognac its freedom. Three centuries later Cognacs freedom had been reinforced by its most distinguished native, King Francis I, the very model of a Renaissance monarch born in Cognac in 1491 and ruled from 1515 to 1547. Another royal visitor was Louis XIV whose mistress was the Marquise de Montespan who lived in the Charente. But royalty gave way to dictator when Napoleon came to live on the island of Aix. It was probably during the Napoleonic era that Martell and Hennessy started to gain their supremacy over other firms, something that they have never subsequently lost. Legend has it that Napoleon insisted that his personal barrels of cognac remain undisturbed while he was away on his military campaign across Europe. When he returned to claim his cognac six and a half years later, he found he enjoyed the aged cognac even more than he had enjoyed the young cognac. Today, Napoleon cognac is aged for a minimum of six and a half years but more typically for between 8 and 20 years.

 

World Record Breaking Cognac Collection

Over one thousand individual bottles of cognac have been amassed into a unique and prestigious collection that will be sold at auction in June.  Of the 5000 individual cognac producers, several hundred have contributed to the collection and every bottle is unique.  Many of the cognacs are the latest top end presentations from the big houses, which are commercially available, but more than half of the collection are of VSOP/XO quality and over 200 are said to be exceptional.  Of the latter, many are believed to be quite old, in rare or unusual bottles and come from individual, single estates. Late last year the Guinness Book of Records recognised the project as the largest single collection of cognacs in the world.

Wealthy cognac enthusiasts will have the opportunity to spend a minimum of €300,000 on this unique collection later in the year and the proceeds will go to financing Rotary Club charity projects. One has to wonder if it will be possible to sell it without breaking it all up and if it is, whether the collection will remain intact!

The main interest in the collection will be the 200 or so “exceptional” bottles which we understand are rare and old cognac vintages. As the leading supplier of pre-Phylloxera cognacs we are well aware of the commanding prices these old nectars can attract, especially those from the beginning of the nineteenth century. The demand for these old, rare cognacs has hugely increased, buoyed up by both the Russian and Chinese demand. Indeed, even those with larger availability, such as the 1811s which were as little as £4-5000 just five years ago, are today attracting prices nearer to £10,000 in good condition.  Not many recognise their real investment value.

Asian demand forces cognac prices upwards

Demand for cognac in China increased by another 15% last year with Singapore also seeing a 10% rise.   This continuing trend exerts even more pressure on a market which is already struggling to meet demand.   It is the Asian taste for superior, older (VSOP/XO) cognacs in particular, that is having such a tremendous effect on prices.  In 2012 the wholesale price of cognac rose by 14% and this year another 24% increase is expected.  Customers buying on the high street can therefore probably expect to pay around 15% more than they did last year.

The growing demand is forcing big commercial negoçiants to blend younger cognacs for their products.  To meet customer expectation more additives are required, producing an inferior quality cognac vastly different from the pure, unique single estate varieties.

Minimum age of XO cognac debated – Regulation could change again

In three years’ time the minimum age of XO cognac is set to change to 10 years in the cellar but this was agreed before the recent Asian cognac boom.  The Asian taste for luxury cognacs is already affecting supply of the older varieties so insisting that XO cognac must be aged another 4 years in barrels is unsustainable.  The poor availability of older cognacs means that the big four houses would be unable to supply sufficient quantity of the older XO cognacs required in the growing Asian market.  Their heavy influence on the ruling body is almost certainly going to see the decision revoked.  During the last decade we have seen the average age of XO cognacs decline sharply from up to 20 year old eaux de vie being used, to well under 10 year old, which is now the norm.

Another Cognac House Falls – Larsen Cognac sells to Remy Martin

Larsen, the Norwegian owned cognac House in Cognac has been bought by Remy Martin for an undisclosed sum. The firm was known for their Viking ship bottles and Norsemen ceramic decanters that were often seen in duty free shops at airports. Remy have agreed to keep the brand going as it will fuel their range of customers in the Scandinavian markets. Larsen were negoçiants and don’t make any cognacs themselves but buy them in, mainly from the Champagnes.  This may well be another reason why Remy were interested, as like the other big houses, they are desperate to get their hands on as much good quality stock as they can to feed their Chinese customers.

Larsen moved to Cognac in 1919, seduced by the quality of the French brandies. He became well known in the area and was regarded as a connoisseur of fine cognacs. His brand is a market leader in Scandinavia where customers are able to buy Larsen cognacs in the Limoge decanters as well as the luxury Baccarat Crystal decanters that have become synonymous with the brand. It is a shame that yet another of the old cognac houses has fallen to the big four but maybe this was inevitable due to the pressures on the market and the rising cost of cognac.  Larsen supply a range of blended cognacs all containing additives.

Update – Cognac prices all but guaranteed to rise in 2013

At a meeting in Cognac this week, we have received confirmation that some cognac distillers are being offered prices for cognac 22% above this year’s price. So far we understand that only Hennessy have made any offers, but it is certain that the other big houses, Martell, Remy Martin and Courvoisier will follow in order to protect their supplies for the market place.

Last January we saw prices go up by an average of 14%. If this year’s increase becomes the norm it will be a record, but will affect the younger cognacs far more substantially than the older ones, as younger cognacs are being sold in great volumes to the Asian markets.

At Brandyclassics we are constantly trying to keep a step ahead of the market, especially at the present time when demand for cognac is so high. We are able to buy forward to protect the price our customers pay – but sadly there are limits to what even we can do. We see further prices rises for cognacs inevitable, and indeed expect all French brandies, be it CognacArmagnac, Calvados or Eau de Vie, to become more expensive in 2013.

Why buy Hermitage Cognacs?

The good news is that whilst cognac prices are increasing, Hermitage Cognacs are still much lower priced and of superior quality than any cognacs made by the big four houses. The message has to be, “Buy Hermitage Cognacs now” – superb value and quality go hand in hand at Brandyclassics.

Whether you’re looking for our one of our exceptional but less expensive award winning 10 year old Cognacs, or a rare luxury such as our Hermitage 1900 Grand Champagne Cognac, rest assured the Hermitage range has a Cognac to suit a wide range of  palettes and pockets.