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Menuet Cognacs sold to a Chinese Buyer

Posted in News from the Brandy Houses and tagged

Many years ago Brandyclassics bought cognacs from Menuet Cognacs; they were great cognacs and the cellar contained some very special stock from 1947 and some superb 50 y.o. Unfortunately the company got into a lot of trouble and the firms owner sold most of his stock and bought cheaper cognacs from a well known and very good negoçiant whom Brandyclassics brought together, so that they were able to carry on with the name, supplying markets particularly in Russia.

This month we have heard that the name Menuet has been sold to a Chinese buyer, the first Chinese venture into cognac. We understand that there was some family concern at the sale since the firm was established in 1850.

Brandyclassics opening Company in Cognac

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Move to develop easier International shipments

Over the years we have gradually expanded our stores and offices but with the potentially massive markets in China and the Far East developing,  we have decided to ship to these markets direct from where the cognacs are made. Sales of cognacs to China have grown massively in the last few years and we have had many enquiries for our Hermitage cognac range. Our facility in France will be associated alongside one of our key distributors near Segonzac in the very heart of Grande Champagne which is the top cru of Cognac.

The opening of the company in France will enable us to handle the taxation and duty more easily, thus avoiding shipping through UK bonding facilities, saving both cost and time. It will enable us to load larger shipments and send them direct to their destinations – this will be particularly attractive to the Far East markets. Initially the facility will be just offices and stores for holding the cognacs, but this gives us the opportunity to develop and install much larger tanks for holding cognacs. When shipping larger orders to the Far East, the need for holding thousands of litres of cognac becomes critical. We measure and buy cognac by the hectoliter of pure spirit, that is to say 100 litres at 100% alc. Of course it is never at that strength, but for taxation purposes it is essential we know how much alcohol we are moving at any one time. One hundred litres of pure spirit is the equivalent of 357 70cl bottles of cognac at 40% alc. So, if as hoped we are able to ship full containers – which are the equivalent of 900 cases of 12 bottles – we will require more than 2800 litres of pure spirit or 7000 litres at 40% – a not insignificant quantity!

 

Hennessy Cognac – an Old Firm with a Young Problem

Posted in Brandy Education and tagged

Hennessy VSOP and Hennessy XO are perhaps the best known cognacs in the world, but over the years the standards of these cognacs has not just slipped but plunged to depths unimaginable in the haze of cognac gloom. The barrel age of these onetime legendary cognacs is falling annually as the demand for them increases. Probably the biggest problem is that as the age of the cognac in the bottle reduces, the level of additives required to compensate for their fiery nature and light colour increases.

Hennessy’s problem is by no means unique. Indeed it is the problem with all the big negoçiants including Remy Martin, Martell and Courvoisier. There simply isn’t enough cognac being produced to supply the markets, especially those in China where growth is escalating at 20% or more a year. Demand for luxury cognacs is such that the Chinese are taking every opportunity to supply fake products in the market.

The biggest problem that we all have with high quality cognacs is the ageing process. Those that come from the top cru’s such as Grande Champagne and Petite Champagne can take up to 70 or 80 years to develop to their fullest in the barrel and that costs a lot of money and patience!

Cognac regulations say that VSOP cognacs must age for a minimum of 3 ½ years in their barrels whilst XO must be at least 6 ½ years old. At one time in the 1960’s and 70’s Hennessy XO was age in the barrel  for around 25 years old and although additives were used, they were only used in small quantities. Today, Hennessy XO is estimated at being less than ten years old and falling annually – one wonders how long it will be before it reaches the legal minimum?

There are around 5000 cognac producers and some of the smaller family firms that have been making it for generations keep their aged cognacs, only selling them either under their own names or to smaller negoçiants who sell high quality single estate cognacs.

Hermitage Cognacs Limited are unique, offering naturally aged cognacs with age statements to customers who seek great quality and individual choices in age, strength and flavour. Hermitage cognacs offer cognacs from only the very finest distillers in the top cognac crus. That is why Hermitage Cognacs win many medals for what is regarded by many as the finest cognacs in the world.

The Cognac Process Part 3. The Dutch Influence

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Around the middle of the 16th century the Cognaçais had been liberated from the English and lost some of their most important markets. But they were well placed to satisfy the new demand from the Dutch, who were seeking concentrated wines to render palatable the generally putrid drinking water in their ships.

At first they imported the wine from the Saintonge to “burn” in imported copper stills from Sweden. The Dutch authorities disliked using precious grain, the alternative raw material for spirits, because it was an important staple food. The need for the brandywijn increased and the Dutch started distilling at the French ports. The locals who were quick to catch on started to burn or distil the wines themselves, enabling the reduced wines to arrive at the ports in better condition.

The wines generally came from the bois slopes, where the woods had been replaced by vines (as they were not as suitable for growing grain) as well as the area to the south of Cognac known as the Champagnes, where grapes were already being grown. By this time, what was a necessity for the Dutch had become a fashionable luxury in London!

The Cognac Process Part 2.2 A Small Town

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Originally the town Cognac was important as a crossing over the river. In the Middle Ages it became a notable trading centre for salt, the regions first stable export, and then for wine. These provided Cognac with an incomparable network of contacts in Northern Europe, since both depended on markets principally in Britain but also in the Low Countries and Scandinavia.

Local brokers throughout the Saintonge – the region from Angoulême to the sea – would buy the salt or wine on behalf of foreign buyers. The casks were shipped down the Charente to Tonnay-Charente, the tidal limit downstream on gabares, the special barges used for 700 years until well into the 20th century. In the port of La Rochelle they were sold to representatives of foreign buyers.

It was not until the middle of the 19th century that the merchants grew rich enough to hold one or two years of cognac stock. Until then they remained effectively brokers. The growers matured the cognacs and shipped them in casks, the eventual buyers financing the purchase which they sold under their own name.

Crisis in Cognac – Not Enough Cognac for Customers Orders

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Cognac distributors in China are failing to obtain sufficient stocks to fulfill demand. Many producers in Cognac are under pressure to supply valuable stocks to major negoçiants for blending in VSOP, XO blends. The shortage of supply is forcing prices up and leading to higher costs of new cognacs. Thousands of distillers all over the region are being asked to supply even younger cognacs for blending with inevitable loss of quality. Industry body the Bureau National Interprofessionel du Cognac (BNIC) said more than five bottles were sold every second in 2011, the total number of bottles sold rose by 6.4% to 162.9 million.

The Far East, which accounted for more than one-third of demand, was the biggest and fastest-growing market, with volumes up 14.4%. Sales in China alone rose by 20%, the BNIC figures reveal. Growth in Europe was more modest, with the region’s volume sales edging up by 0.4% to 46.9m bottles, while demand in North America rose 3.2% to 50.8m bottles.

Speaking to Reuters, Rémy Cointreau chief executive Jean-Marie Laborde spoke of his optimism for the coming year and his belief that the recovering US market coupled with the rapid growth in Asia will help counteract the continuing economic struggles in Europe. Laborde said that sales in the October-December period in particular had exceeded expectations, mainly due to increased Cognac shipments ahead of the Chinese New year. Is big brand optimism good for cognac? Certainly not for quality!

Profits going up again for the big houses

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Luxury goods giant LVMH reported a 1% rise in net profit this week as the company continues to show strong growth despite economic uncertainty in Europe. The groups net profit topped €3 billion, as sales jumped 16% last year, driven mainly by strong spending in Asia. The groups Chief Executive, Bernard Arnaud said growth was much the same as the previous year and he is expecting next year to grow yet again.

Remy Martin are also expecting a big jump in profits 18%) as indeed are those of Pernod Ricard, owners of the Martell brand. The big four Cognac houses are anticipating further growth as a result of continued strong sales in the Asian markets. It is expected that sales volumes will greatly increase in 2012.

Boost for UK Venues as Customers go out More Often

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People are starting to frequent bars, clubs and restaurants in the UK increasingly more, often leaving the on-trade well placed to capitalise on “austerity fatigue”, according to new figures.

The Zolfo Cooper Leisure Wallet report, the biannual barometer of the Leisure industry, revealed that the frequency of visits to leisure establishments has increased despite average spend-per-visit continuing to drop. The increase is seen across the board, the first time any increase has been seen in the three main areas of leisure spending examined by the leisure Wallet since launching in summer 2010. However the spend per visit continues to drop in line with falling incomes across the country.

Over the year the national average household income across a sample of 3,000 consumers fell by £640 to £30,584. In total 48% of those interviewed said that their disposable income had decreased, while just 6% reported an increase. Despite this, visits are on the rise, suggesting a behavioral shift and recognition by consumers that if they spread their leisure spend; they can start going out more.

Over the last year drinkers have increased their visits to pubs and bars by to an average of 4.6 visits a month from 4.3 a month in summer 2011 and visits are even up on the 4.5 visits at the same time last year. However the current National spend per visit is now £14.69, a drop of 2.6% from the last report and 9.5% last year when the figure was £16.24.

Russians are selling Cognac Jenssen after 7 years

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The Jenssen cognac brand was created in 2000 by a Norwegian investor who later sold it to the Russian wine and spirit group MMVZ in 2005.

The firm has failed to show a profit and has been the subject of much controversy when it was discovered that Andrei Borodin, the ex president of the Bank of Moscow, was declared the real owner of the Business – he had been involved in many banking scandals.

The estate consists of around 20 hectares (50 acres), with a distillery and a large house with a swimming pool. Espen Soland, who was in charge of the domaine has returned to Norway and since then a Ms Aline Duverger has been in charge but has been unavailable to comment on the business and sale.

The Bottle Story – C by Courvoisier

Posted in The Bottle Story and tagged

Courvoisier have just announced a new product, called C by Courvoisier. It’s a cognac and they even call it a revolutionary cognac. “C” is supposed to open a new way of consuming cognac – a new approach to the category.

It’s produced in small batches, double barrel aged. OK up to here, do Courvoisier really believe we think it is single barrel aged? All cognac is double barrel aged, firstly in new barrels for 6-12 months, then in old barrels, hopefully for many years. But regrettably not for Courvoisier C, launched in the traditional black Josephine bottles. It is said that the blend comes from fifty growers, all in the Fins Bois which is the forth cru of Cognac and geographically the largest. Most cognacs from this region do tend to age faster than those from the Champagnes, they will often provide a dry nutty flavour but Courvoisier claim that it has a clove, toast, carnation and orange peel aroma with a fruity and floral flavour.It is ideal as a drink on a night out with the boys. And the “C”? Well, that is supposed to open a new way of consuming cognac, a new approach – “we drink it cold”. Hmmm, interesting, pass the sugar!