WEATHERING THE STORM: LOOKING AT HOW HENNESSY COGNAC DOES IT

With cognac market falling in China by 19% to 1.5 million cases last year due to Chinese government tightening on conspicuous behaviors, cognac houses are re-focusing on the USA, which remains Cognac’s largest market by volume at approximately 4 million cases.

In addition, the cognac houses are introducing a great deal of innovations with a premiumization and launching limited edition: Remy Martin VSOP Cask Finish, Hennessy VS designed by Shepard Fairey, etc.

In particular, Hennessy is coming out of this turbulent times with some good growths and prospect of more growth estimated at about +5% in the coming months. These results come from specifically 4 continuous efforts:

1) Deep pocket spending on advertising & promotions.

2) Months after months, campaigns after campaigns rigorous pressure on the young Legal Drinking Age (LDA) consumers fueled by Hip Hop artists and , but not only, as Hennessy has widen its appeal with celebrities such as Manny Pacquiao, and vintage legends such as Sir Malcolm Campbell and his iconic Bluebird.

[youtube=http://www.youtube.com/watch?v=sb2x87zq0qI&w=560&h=315]

3) Dedicated segmentation, target, and positioning plans aiming at precisely reaching specific personas:

. NAS campaigns for instance, with African American targets.

. Manny Pacquiao for instance, with Hispanic targets.

. Sir Malcolm Campbell for instance, with mainstream markets.

4) Continuous innovations. Open mindedness and innovation are 2 different things but innovation requires open mindedness. Hennessy is thoroughly embracing creativity and setting new standards n the industry. Hennessy has dominated the cognac industry for 100 of years. How impressive!

What the future holds? A growing Hispanic population consuming cognac.

Source: Shanken Daily News

2014 IS A GOOD HARVEST IN COGNAC!

In Charentes, the home of cognac, volume is predicted to climb 12 percent to 8.82 million hectoliters from 7.88 million hectoliters, with a warm and dry September halting the development of botrytis and mildew fungal disease.

Harvest of the ugni blanc grapes used for distilling cognac started late September, with “clearly” higher-than-usual grape weight compensating for a reduced fruit count. 80% of the harvest suffered from difficult climates during the summer with hailstorms earlier in the summer mid june to late June. And a rainy summer, with a cooler than usual August. September was surprisingly sunnier which allowed for a last minute recovery of the situation.

99% of the producers have completed their harvest as of today.

[youtube=http://www.youtube.com/watch?v=QwZ5TCcE8bk&w=560&h=315]

Distilling cognac will start in 3 weeks. Regulations allow distillation to be operated from 15th November to 31st March. Right now producers are focused on fermenting their juices into wines in times for the 4 1/2 months distilling season.

9 liters of wine with 9% Alc/Vol will produce 1 liter of eaux-de-vie with 70% Alc/Vol. Eaux-de-vie is the name of the spirit produced from distillation. Only after it is aged 2 years in oak barrels, the eaux-de-vie is then called cognac.

2014 COGNAC HARVEST IS OVER WITH GOOD PROSPECTS

In Charentes, the home of cognac, volume is predicted to climb 12 percent to 8.82 million hectoliters from 7.88 million hectoliters, with a warm and dry September halting the development of botrytis and mildew fungal disease.

Harvest of the ugni blanc grapes used for distilling cognac started late September, with “clearly” higher-than-usual grape weight compensating for a reduced fruit count. 80% of the harvest suffered from difficult climates during the summer with hailstorms earlier in the summer mid june to late June. And a rainy summer, with a cooler than usual August. September was surprisingly sunnier which allowed for a last minute recovery of the situation.

99% of the producers have completed their harvest as of today.

[youtube=http://www.youtube.com/watch?v=QwZ5TCcE8bk&w=560&h=315]

Distilling cognac will start in 3 weeks. Regulations allow distillation to be operated from 15th November to 31st March. Right now producers are focused on fermenting their juices into wines in times for the 4 1/2 months distilling season.

9 liters of wine with 9% Alc/Vol will produce 1 liter of eaux-de-vie with 70% Alc/Vol. Eaux-de-vie is the name of the spirit produced from distillation. Only after it is aged 2 years in oak barrels, the eaux-de-vie is then called cognac.

CONSUMER TRENDS CAN HELP IN DEVELOPING NEW PRODUCTS: HOW AND WHY?

Launching new products can be a big revenue driver, but it can also be a big cost to companies. The beverage industry is well-positioned for new products that capitalize on consumer trends, but there are several things companies should keep in mind when launching new beverage products, a panel of experts said during a recent Beverage Industry webinar.

Old metal iron with new tag

1st Key element = Value:
Consumers are willing to pay more for products they find valuable and that make their lives better.

2nd Key element = Identifying Innovators and Early Adopters:
These consumers are looking for new products and if they like them they quickly tell others.

3rd Key element = Understanding Millenials:
They look for details and unique points of differentiation.

4th Key element = Planning beyond the Launch year.
A great deal of companies fail has they plan for resources just for the first year and cannot keep the momentum year 2. Exemple, lesser media exposure, lesser cash flow to replenish the shelves, etc.

Source: SmartBlogs

2014 WINE VISION CONFERENCE IN LONDON: PREPARING FOR THE FUTURE

The 2014 Wine Vision conference to be held in London on November 17-19 2014 at the Shangir-LA at the Shard and the Hurlimgham Club.

Wine Vision Conference 2014

It will discuss solutions on how  to focus on new consumers and emerging markets. Traditional markets are under pressure from lowering margins and increasing consumer choices. Thus, new markets are becoming appealing for their growth potentials. The key is tapping into emerging markets to balance the declining sales from traditional markets.

The conference will hear from experts in many fields including Prof. Barry Smith, Alice and Jerome Tourbier, Dan Jago, Jean-Guillaume Prats, Jaime Araujo, Charles Banks, Sara Norell, Mike Veseth.

Topics will include branding, packaging, multi-channel retailing, digital communications and emerging markets – freshly igniting the debate about how the industry can innovate and prepare better for the future.

 Source: Wine Vision Conference

WHISKIES ARE INCREASINGLY LAUNCHING PRODUCTS WITHOUT AGE STATEMENTS

Shanken Daily News just posted a very interesting article on the decreasing number of whisky brands launching products with age statements, and in comparison making more products without sub-branded names such as:

Talisker Storm
Mortlach Rare Old
Macallan Ruby
Macallan Rare Cask
Kilkerran Work in Progress 5
Laphroaig Select
Bowmore Small Batch
Glenmorangie’s Private Edition Companta
The Glenlivet Nadurra Oloroso

Aberlour A'Bunadh No Age Statement

Aberlour A’Bunadh
Anchor's Revival
Anchor’s Glenrothes Select Reserve

Apparently consumers want more choices and therefore brands are proposing more choices than 'age statements'.

This is an interesting trend which has a direct relation with how one can envision the cognac drinkers to look at VS, VSOP and XO. Should cognac makers in contrast go into 'age statements' or go into sub-branding with mentions such as 'Grand reserve' etc.?

With more competition, more regulations and lesser stocks Scotch Whisky in particular is starting to feel the problems cognac makers have been faced with.

Source: ShankenDailyNews.com

XO G WINE FROM GUILIANA RANCIC IS SET TO BE SOLD THROUGH WALMART

TV personality Giuliana Rancic will launch a new wine brand under the label XO, G Wine that will include three varietals in by-the-glass formats. Available at about 1,200 Walmart stores beginning in November, XO, G will include a dry rosé, medium-bodied Pinot Noir (both from the South of France) and a Pinot Grigio from Italy. Four individually-packaged, pre-filled glasses stack together to form a 750-ml. bottle, and a mixed pack will be available for the holidays that features two glasses of Pinot Grigio and two glasses of Pinot Noir. The brand is targeted at female consumers and retails for just under $10 at select Walmart locations.

XO G Wine by Guiliana Rancic

Like many of today’s hottest reality stars, Giuliana Rancic will need to get involved with promotions. I wonder how one can do this with Walmart!!

Another thing this is catching my eye is:

. How can one call a wine XO without getting in trouble with the US Patent and Trademark Office?
. But isn't there a gin already call G'Vine?

I just thought that is a complicated name for a popular wine! 

Source: The Sacramento Bee

CHATEAU HAUT BRION IS 100+ YEARS OLDER THAN ANYONE THOUGHT BASED ON SOME NEW HISTORICAL FINDINGS

I never understood what sort of jobs could be to be a art historian researcher. Now I know ...

Chateau Haut Brion Established in 1521

An art historian and medieval history researcher unearthed a historical document mentioning Chateau Haut-Brion in 1521, almost 140 years earlier than the oldest mention was originally believed to be. Owner Prince Robert of Luxembourg said the document indicates that the estate is now in its sixth century of producing reputable wine.

The winning researcher wins Haut-Brion wines worth an estimated €37,500, including two cases of the 1989 vintage.

Anyway, a cool story perfect for the weekend.

Source: Decanter

COMANDON AND ROYER WIN ALL THE CATEGORIES FOR VSOP, XO & EXTRA COGNACS AT THE 2014 WORLD SPIRITS COMPETITION

The World Spirits Competition in San Francisco is regarded as the No.1 spirits competition in the world. This competition is the most comprehensive international spirits judging conducted every year since 2000. Products are evaluated by top spirits professionals and are judged in a blind, consensual procedure ensuring integrity and making this annual competition the most followed competition in the spirits industry.

They only rate spirits and over 3,500 spirits are competing every year.

This year in 2014 for the first time the competition has recognized the best cognacs according to the 'classic cognac quality standards', that is VS, VSOP and XO, which is making the winners' list more interesting than before.

The winners are:

2014 WORLD BEST COGNAC  VSOP = LOUIS ROYER VSOP FORCE 53

Louis Royer Cognac VSOP Force 53

2014 WORLD BEST COGNAC XO = COMANDON XO

Comandon XO, 2014 World Best Cognac XO

2014 WORLD BEST COGNAC EXTRA = LOUIS ROYER EXTRA

Louis Royer Cognac VSOP Force 53

Source: www.sfspiritscomp.com