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.
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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
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