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Bhakta Innovates in the Armagnac Market

Last time we reported that Whistle Pig founder, Raj Bhakta, had bought the armagnac house Maison Ryst Dupeyron.  One wonders if he intends to do for armagnac what he did for rye whiskey over the past decade? After just 12 years of trading, Whistle Pig has become the leading supplier of rye whiskey and sells over 1.2 million cases per year.  Bhakta’s interest in armagnac began in 2017 when Whistle Pig took its priciest rye whiskey and finished it in armagnac barrels. The result, the Black Prince, won best overall whiskey at the San Francisco World Spirits Competition. No longer a shareholder in Whistle Pig, Bhakta is now embarking on a new project with his armagnac house purchase.  His first release, Bhakta 50, is a blend of 8 vintages with a minimum age of 50 years which has been finished in smoky, Islay Scotch casks followed by new armagnac casks.  Bhakta feels that this “freshens up” the old spirit, although as a result, it can no longer be called ‘armagnac’.  Keen to bridge the gap between whiskey and armagnac he wants to be creative and “deliver a product of great value and rarity”.  It will be interesting to see if such innovation boosts armagnac’s presence across the brown spirits marketplace.

Sustainability in the Drinks Industry

sustainabilityWe have often reported how the drinks industry is changing its production methods to become more environmentally friendly but now the products themselves are under the spotlight.  A European group, the Circular Economy Platform for Glass Collection & Recycling, is aiming to have 90% of all EU glass packaging recycled by 2030; the figure currently stands at 76%.  A consumer survey found that 80% of Europeans still prefer buying wine and spirits in glass bottles and spending on products packaged in glass has risen 51% in the last 3 years.  The ‘Close the Glass Loop’ group, supported by Spirits Europe, also aims to improve the quality of the recycled glass as currently only 52% of it ends up back in the production loop. However, this has not stopped the production of alternative packaging.  Wine sold in cans has really taken off and Waitrose is pioneering a new sustainable packaging – wine in tubes.  Following their aim to become the leading sustainable retailer in the UK, the ‘bag in tube’ wines are 100% recyclable and contain the equivalent of 3 x 75cl bottles. Once opened, the wine will remain fresh for 10 days longer than when in a glass bottle.  Sustainable packaging has also inspired the Paper Bottle Company (Paboco) which is being supported by Pernod Ricard.  Remy Martin have gone one step further and announced that they will discontinue gift boxes on a number of their products, in certain markets, in order to reduce waste and improve sustainability.

XO Brandy – What Does It Mean?

XO BrandyXO brandy, XO cognac. XO armagnac. Why is the term XO used so often when few of us actually know what it means? Originally, XO stood for Extra Old. In terms of age, up until 2018, an XO cognac had to be at least 6 years old but this was also the required minimum age of Napoleon Cognac. So, after decades of promising change, the controlling body of cognac, the BNIC, agreed to make the minimum barrel age of an XO cognac 10 years old. This is important because cognacs do not mature once they have been taken from their oak casks and placed in glass. Armagnac also stepped into line and now age their XO brandies for a minimum of ten years.

The problem with all this is that brandies, particularly cognacs, need to be in a barrel for much longer than ten years to reach optimum maturity, so an XO brandy is actually not very old. It should be noted that some of the smaller brandy houses keep their XO cognacs in the barrel for longer than the required minimum age in order to produce a more mellow, flavoursome product. More recently it has been recognised that a 10 year old cognac is not particularly old so another generic age statement has been introduced, it is called XXO. The minimum age for an XXO cognac (Extra Extra Old) is 14 years in an oak cask. Even this is not long enough for cognacs from the premier cru, Grande Champagne. They are the slowest of all brandies to mature and may take up to twice as long as cognacs from other crus, requiring 50 years or even more.

The term XO is widely misunderstood and even at ten years old some brandies are only just drinkable. At Hermitage Cognacs, we do not sell generic XO brandies. We prefer to offer an age statement on each one to help customers understand how long their brandy has matured in the cask.

US Tariffs on Wine and Spirits

US TariffsSix months ago, the US imposed hefty tariffs on the import of some European wines, whiskies and liqueurs following a long running dispute over EU import tariffs and subsidies. Last December, the US government considered imposing similar US tariffs on other EU wines and spirits, including cognac, and raising tariffs by up to 100%. Fortunately for our industry, the situation remained unchanged but Scottish whisky and American whiskey have already suffered huge export losses. Spirits Europe and Discus (Distilled Spirits Council of the US) are now advocating free trade between the US and the EU as they are each other’s biggest spirits export destinations. The DG of Spirits Europe said “… amidst recent EU-US trade tensions, our sector has been turned into a hallmark example of the considerable, yet entirely avoidable economic risks and damage whenever free trade is interrupted by tariffs.”  As the UK prepares to leave the EU, it will have the opportunity to step away from these retaliatory tariffs but of course our much loved French brandies will still be affected.

US Controlled Brandies

US Controlled BrandiesWe are used to seeing the ownership of French brandy houses moving to the Far East but recently, US controlled brandies are coming to the fore.  US drinks group Sazerac has released a cognac named after Bernard Sazerac de Forge who founded his cognac house in 1782. Called Sazerac de Forge & Fils ‘Finest Original’ it is based on the original cognac and made from grape varieties used in the early 19th century. ‘Folle Blanche’ and ‘Colombard’ were popular during the pre-Phylloxera period and blending cognacs made from them is said to be responsible for the character of the new expression. The opportunity to move into the world of cognac production presumably came after the drinks group acquired Domaine Breuil de Segonzac in 2016. Another French brandy house was purchased recently by a US company when the founder of whiskey brand WhistlePig, acquired armagnac producer Maison Ryst Dupeyron. With the popularity of armagnac increasing all the time and cognac production struggling to meet demand these are shrewd acquisitions by the Americans.

Coronavirus Impact On Trade

CoronavirusThere cannot be a soul who has not been affected by the current coronavirus pandemic but the On Trade has been hit particularly hard. With pubs and restaurants closed worldwide their future is uncertain. A bitter blow, especially as the ONS recently reported that the number of pubs and bars operating in the UK rose last year for the first time in a decade. Here in the UK staff have been furloughed and emergency legislation has given all commercial properties a 3 month rent reprieve. In other attempts to keep the industry afloat, the WTSA called for the collection of alcohol duty to be suspended for 6 months and denounced the timing of the Scottish government’s move to introduce a bottle deposit return scheme. UK duty did not get suspended, but the government did add off-licences to the list of businesses deemed “essential” during the lockdown.  One trader in Maryland is trying to keep service going by using its pet boxer dog to deliver orders to the public in the carpark.  This follows the WHO advice that pets cannot carry the virus. We have certainly seen some ingenious ways to keep businesses running recently. We are all grateful to the many spirits producers who have turned their skills and equipment to making alcoholic hand sanitisers.  Who knows how long the demand for it will go on!?

FREE DELIVERY on all UK Orders over £100

free deliveryWe are open for business as usual so you can send a special gift or birthday present to a loved one you cannot visit or treat yourself during this particularly difficult time at home. We have wonderful French cognac, armagnac and calvados for every year of birth from 1928 to 2002 and we are taking all the recommended hygiene precautions when handling bottles and packaging.  If you have any questions please call the office number (01225 863988) as usual.

To make your life a little bit easier we are giving FREE DELIVERY on all UK orders over £100 including VAT, until restrictions are lifted.  Please be aware that although we are able to process orders within 1 working day, Parcelforce are not able to guarantee their normal delivery times at present as they are prioritising delivery of essential medical and food items to the most vulnerable. Our deliveries to America may also be delayed, by up to 10 days, due to a shortage of flights.

La Grande Josiane 95/100 – Orange Armagnac Liqueur

La Grande JosianeThe Wine Enthusiast Top 100 International Spirits 2019 has listed La Grande Josiane, Orange Armagnac Liqueur, as Number 1 in its Liqueur section.  Awarded 95/100 points, this score is the highest ever attributed to a French liqueur.  It was described as “Armagnac plus orange liqueur equals a delightful sipper. The rich aroma bursts with orange oil and comforting vanilla. On the palate, nuanced cocoa and coffee wind into a cinnamon-warmed finish, plus just enough alcohol to cut the sweetness.”  La Grande Josiane is one of our best sellers from Chateau de Bordeneuve who reported an “abundant and impeccable” harvest last year.  Despite the unstable and often extreme weather that characterised 2019, the harvest surpassed all expectations.  “Even our youngest Baco varietal vines out-performed their tender years, liberating a rich and unctuous juice – characteristics that are particularly prized for distilling the very best, long-ageing armagnacs.  The future 2019 vintage is looking very promising indeed.” said the Castledine, Commercial Director.

World And UK Spirits Alliance Formed

UK Spirits AllianceAn international group has been formed to tackle issues experienced in the complex and changeable spirits industry.  Brexit, trade wars, counterfeiting and debilitating taxes are just a few of the problems that the World Spirits Alliance (WSA) is looking to address.  Comprising spirits companies and trade groups the WSA will represent the industry in front of international organisations such as the World Trade Organization, the World Health Organization and the United Nations.  Just last month the UK launched its own Spirits Alliance with the aim of “protecting and nurturing the growth of UK spirits”.  Its immediate campaign is to stop any further increase of duty on UK spirits.  Currently the government states that spirits duty will go up by the retail price index (RPI) in this year’s Budget.  This is extremely disappointing as 65% of the nation’s distillers have reported increased sales of spirits since chancellor Philip Hammond froze spirits duty in the 2018 Autumn Budget. Spirit duty rates in the UK have increased from £21.35 per litre of pure alcohol in 2008 to £28.74 in 2019, the fourth highest rate in Europe and one of the highest rates in the world. The price of a bottle of cognac sold at 40%abv, such as Hermitage 2005, therefore includes £8.05 duty.  A spokesperson for the UK Spirits Alliance said: “From Inverness to Penderyn, spirits producers across the country are joining up to back the campaign to fix duty”.

The Ancient Art of Tasting Armagnac

Armagnac is probably the oldest known wine spirit in the world but the art of distillation was introduced by the Arabs between 1411 and 1441.  In the department of France known as the Landes, they produced an agua ardente, or fire water, which was used initially as a therapeutic cure.  Tasting Armagnac for pleasure ensued when it was established that storing the spirit in barrels developed desirable flavours.

Armagnac productionArmagnacs are the earliest examples of distilled wines known in France.  Traditionally they are made using the Folle grape although others, including Colombard, Ugni Blanc and even more recently, the Baco all contribute to its flavour.  Initially distillations were on a pot still but by the 19th century the continuous still was more highly favoured. The distillation process of armagnac allows the spirit to be distilled at a much lower alcohol content range than that of its big brother cognac, produced 100 miles to the north.  The lower range produces a greater fruitiness (but less refined) flavour in the spirit.

It is this process that produces the major differences between armagnac and cognac.  Armagnac can be distilled between 52 degrees and 72.4 degrees alcohol whilst the lower end of the cognac distillation range is 67 degrees.  Armagnacs distilled at the lower end of their range have a distinctive prune flavour which gradually turns to a more crystallised fruit flavour if the alcohol content is nearer the top of the range.Armagnac

 

There are no major producers of armagnac and even the largest firms only produce around 1 – 2 million bottles per annum.  The highest quality, most refined and complex armagnacs come from the Bas cru where the spirit ages much better.  Most of the production occurs in the Tenarézè cru where armagnacs with a more perfumed style are made.  It is the least industrial of all French spirits so much of the joy of armagnac comes from the variety produced by its highly individual peasant roots.