Vinexpo is the biggest wines and spirits exhibition in the world. It is held in Bordeaux every other year and on alternate years is held in Hong Kong.

Although the official figures showed a 3% increase in visitor numbers, numbers of European visitors were down with the exception of visitors from the UK. Visitors from China and South East Asia, as well as visitors from Russia were up. The Chinese are generally increasing in wealth and are becoming much more aware of fine wines and spirits (and many Chinese have a cultural relationship with cognacs since they indicate wealth and prosperity). The Russians too have seen an increase in their wealth and have become much more enthusiastic about embracing fine wines and spirits.

Probably the biggest factor that has kept Europeans away is the proximity to the big German exhibition, Prowein, held this year in the beginning of March. This date seen by many Europeans as far more acceptable, since it does not interfere with the summer marketing and sales campaigns for the coming autumn. The Italians also have an exhibition in the Spring, but the Bordeaux exhibition has other difficulties – most notably, the lack of suitable accommodation in the area.

The hot Spring weather has created many problems in the Charente Vineyards. Temperatures of more than 35 degrees have had a severe effect on this year’s grape harvest. The sun has scorched the grapes, drying them and changing them to little more than sultanas.

Temperatures in the Charente of this magnitude are unusual and can be particularly harmful at this stage of their growth. A 52 year record temperature of 40 degrees was recorded in one vineyard and many producers are severely worried that grape harvests will be drastically reduced as a result of the heat. And as if the heat is not enough, record low rainfalls have also created additional problems with hungry insects and beetles causing additional spraying to prevent infestations.

One grower suggested that vineyard yields this year could be down by as much as 40% and if that happens, there will be serious shortages of wines for distillation…

Figures released today by La Fédération Nationale des Safer (SAFER), the national inventory of land transactions and prices which includes vineyards, is indicating that whilst there is little movement in vineyard prices from last year, there are many vineyard owners who would like to sell some or part of their land if it was possible.

Land in the cognac region is relatively cheap when compared with the land in such regions as St Emillion, where figures as much as 200,000€  are around six times higher than those in Cognac at about 35,000€ a hectare. Perhaps more worrying is the number of vineyard owners seeking to sell their land at a time of cognac shortages across the industry.

Current demand for cognac is far outstripping the supply and the major houses are supplying more and more younger stock to make up quantities. These mega firms have always in the past protected the producers by buying their cognacs and eau de vie, even when their demand is low – so what is happening? It appears that the big firms are deliberately buying younger cognacs in the main to keep margins acceptable. Many smaller producers do not have agreements with the big houses. With new cognacs becoming harder to obtain, shouldn’t  the big firms be looking to the longer term, supporting growers?

Brandyclassics’ range of Hermitage Single Estate Cognacs are sourced from smaller producers, who are able to supply cognacs of the exceptional quality, age and unique character our customers demand.

For more than a year we have been discussing the potential trade opportunities in Asia. We were unfortunate last year as we had planned to enter trade through the food and wine exhibition in Singapore. Despite having set up all the display work for the show, we were scuppered at the last moment by a giant ash cloud looming overhead from Iceland and we were able to reach the show until the last day.

This year we were helped by UKTI who set up a number of key players in the field. Our aspirations were for a single distributor who was able to supply Hermitage Cognacs to Hong Kong and Macau and we were presented with four possible distributors who were already supplying that market with upmarket wines and other spirits.

The Asian market for cognacs is currently very strong, but we were surprised and highly delighted that all four of the potential distributors have agreed to buy Hermitage Pure Vintage Cognacs and supply them to their customers in the region, with two of them even working over the border into mainland China. We are optimistic that the growth of Hermitage Cognacs into the luxury Chinese markets will further our range of top cognacs to our existing customers.