COGNAC LOUIS ROYER IS BACK TO FRENCH OWNERSHIP AFTER 25 YEARS BEING OWNED BY A JAPANESE CONGLOMERATE

The Japanese Suntory, 3rd largest company in alcoholic beverage behind DIAGEO and Pernod-Ricard, had purchased Beam last year in 2014. In buying Beam, Suntory acquired Cognac Courvoisier. In a previous post I was wondering what was Suntory going to do with these 2 cognac companies since the synergies between the two was not obvious. I was guessing about selling one, but I was wondering which one?!

Suntory-Beam Logo

Well, now we know Suntory decided to sell the smaller of the 2, i.e., Louis Royer established in Jarnac in 1853, originally purchased by Suntory in 1989, when Japanese consumed a great deal of cognac.

Cognac Louis Royer Logo

Why not selling Courvoisier since they have owned Louis Royer since 1989 one may say? Because Courvoisier is the 4th largest volume maker in the industry. Perhaps it is harder to sell Courvoisier than Louis Royer too - much more money. Also, I think the ups are greater with Courvoisier than Louis Royer.

Who purchased Cognac Louis Royer?

Emperador, the largest alcoholic beverage in the Philippines, owned by Andrew Tan, the 4th richest man in the country, originally a Chinese migrant, had hoped to buy Louis Royer from Suntory. Emperador is a very famous brandy in the Philippines. The Philippines is a growing market for the consumption of cognac and this was a clean strategic decision. I guess Mr Tan offer was too low.

Emperador Brandy

Other serious buyers in France came out but their offers were rejected.

Terroirs Distillers owned by the Picard family was accepted for 100 million euro. Terroirs Distillers is know for bottling whiskies in France and Scotland with brands such as Highland Queen, Tullibardine, Muirhead's or Rum Charrette purchased recently from La Martiniquaise.

Tullibardine Whisky by Terroirs Distillers

It is possible to believe that Terroirs Distillers will have a different managerial style and objectives than Suntory for Louis Royer, and perhaps will focus less on Japan and other markets.

Source: Nikkei

COURVOISIER LIMITED EDITION TRAVEL RETAIL 'THE VOYAGE OF NAPOLEON'

Beam Inc launched an exclusive travel retail range from Courvoisier entitled 'Le Voyage de Napoleon" at the TFWA World Exhibition last month in Cannes. Once a year in Cannes, famous of its film festival, Cannes presents the International duty free and travel retail industry trade show in the same building they have the film festival.

'Le Voyage de Napoleon' is a collection of the brand’s renowned VS, VSOP and XO Cognacs presented in new packaging, designed to appeal to modern, discerning consumers while tapping into the growing trend towards luxury products.

Inspired by one of the most famous travellers in history, 'Le Voyage de Napoleon' celebrates the star that Napoleon called upon for luck at the start of each battle - a symbol which later became central to the design of the Légion d’Honneur, the military order established by the French conqueror and still given to celebrate excellence and honor meritorious people. 

The collection features a distinctive and opulent packaging design inspired by the journeys of Napoleon, said to be a figure intrinsically linked to Courvoisier’s rich, pioneering heritage.

Cognac Courvoisier VSOP & XO, Le Voyage de Napoleon Edition

Beam International Marketing Manager EMEA Nina Knezevic commented: "We are confident that Courvoisier Le Voyage de Napoleon will appeal to the world’s discerning drinkers as it offers Courvoisier loyalists a unique set of our key expressions across the price range, exclusive to this market."

Beam Travel Retail Business Manager EMEA Antony Kime added: "Travel retail is a unique and important channel for Courvoisier and provides a great platform to showcase the brand to a global audience. Many travel retail customers look for premium brands with a point of difference to those found in domestic markets as they make the perfect luxury gift, so it is essential that we cater for this demand."

Source: ©The Moodie Report By Colleen Morgan

Pernod Ricard May be the New Owner of Courvoisier - What Would Martell Think?

Today an interesting thing is unfolding in the world of big money where shares of faceless big companies are taking overs of each other making the spirits industry even harder for small brands. Today Bloomberg and Goldman Sachs are announcing possible change of hands for Beam Inc. Beam Inc is the owner of multiple brands of spirits including Courvoisier Cognac. Potential companies predicted to take over are the two European spirits companies Pernod Ricard or Diageo. In both cases, it makes for an interesting scenario. In the case of Diageo, they already own multiple agreements and business shares of Hennessy Cognac in association with LVMH. A take over Courvoisier from Diageo would create some tensions for sure. On the other hand, Pernod Ricard is the well known owner of Martell, now the 2nd largest cognac company. If PR was to take over Courvoisier - what would happen!
I can hardly imagine what it must be to manage one of these Houses but two!! There would be certainly some difficult decisions and it may not be in the advantage of Courvoisier.
Read more at:http://tinyurl.com/3heza89