COULD IT BE TRUE THAT COGNAC REMY MARTIN IS BEING ACQUIRED BY BROWN-FORMAN?

Rémy Cointreau's shares have fallen by around 40% over the past year because of a slowdown in China's economy. China is an important market for Rémy Cointreau because of the amount of business they do with Rémy Martin in Asia. 

Prior to this slow down, China had accounted for around one-third of Rémy’s turnover. In the first nine months of the company’s fiscal year (ended December 31, 2013), overall sales declined by 12.3% to €964.5 million ($1.325b).

However, today Rémy Cointreau’s share price jumped on rumors that Brown-Forman was considering a bid for the French drinks group.

Brown-Forman and Remy-Cointreau

After financial blog Betaville reported on 3rd April that Brown-Forman has been working with several advisers, including Goldman Sachs, Societe Generale, Lazard Bank etc. on a potential acquisition of Rémy, and that “tentative discussions have been held between investment banking advisers to both companies,” Rémy shares rose by as much as 11% on the Euronext Paris Exchange—to more than €65 ($89)—in this morning’s early trading. By mid-day in Paris, Rémy’s share price surge had cooled, but, at around €62 ($85), they were still nearly 5% above yesterday’s closing.

Rémy Cointreau is a family-controlled company, with the Heriard-Dubreuil family holding majority ownership. Over the years, the Heriard-Dubreuils have steadfastly refused to sell, even as Rémy has at times endured more difficult conditions than it does currently, and I doubt the Heriard-Dubreuil will sell.

Brown-Forman is also a family business with 70% controlled by the Brown family in Kentucky. Jack Daniel's is by far its most famous brand (Tennessee whiskey).

Cognac makes up 80 percent of Remy Cointreau's operating profit and China 50% of it. Jack Daniel's make 50% of Brown-Forman profits.

This would be a major deal in the cognac market. I wonder if this is a 'hoax' as it is being reported by Reuters or Bloomberg also as a 'rumor' and 'speculation'.

Diageo, Pernod Ricard or Bacardi may want to get in the game too.

Sources: http://www.shankennewsdaily.com, http://www.reuters.com, http://www.bloomberg.com

ART STUDENTS ARE MAKING DRINKING COGNAC MORE SEDUCTIVE

Recently, Remy Martin worked with art students on how to combine cognac with "the art of seduction". The cognac producer wanted to find a new way to appeal to the female drinker, since cognac appeals mostly to men.

Cognac Glass Ring By Remy Martin

Remy Martin completed this project with design students to make the "art of drinking cognac more seductive”. The students produced a set of beverage rings to serve as a dual purpose jewelry and proper drinking ware to take out to your party. Remy Martin is not going to sell these jewelry glasses but only displayed them in a couple art exhibitions. That is too bad since these were really novel ideas which where possibly going to get women really finally interested in drinking cognac.

Many clunky inventions have come along in recent years that aim to wear alcoholic beverages. First came the Wine Rack ($27.59), a sports bra with extra-long straws that's designed to be utilitarian. Then there was Baggy Winecoat ($44), the purse with a discrete spout to drink on the move. For the men there is the Flask Tie ($24.95), which come in 34 designs and can hold up to six ounces of liquid.

Cynthia Rowley, Flask Bangle

Cynthia Rowley's flask bangle may cost quite a bit more as it sells for $225 on CynthiaRowley.com than the above but it appears more intricate.

Photos Credits: Remy Martin and Cynthia Rowley

BRAND EQUITY IS IMPORTANT, AND BIG BRANDS KNOW THIS

This title of an article caught my attention: 

"Samsung Wants You to Sip Some Hennessy: A Quad-Core Clamshell Phone with A Keyboard and Dual Screens"

In fact it has nothing to do with Hennessy Cognac but with one of the new smart phones launched recently by SAMSUNG (model SCH-W789). It is just strange that they would call it 'Hennessy' perhaps not as strange as making a flip phone. Wait a minute flip phones are still very popular in China.

Smartphone SAMSUNG Hennessy (model SCH-W789)

Is this phone to be sold in China?

Could it be a phone just sold in China?

Actually, yes. Therefore, perhaps it is not a coincidence that it is called Hennessy after all since Hennessy is one of the most popular brand. Is Hennessy Cognac OK with this?

Probably not! But SAMSUNG is a big company and from Korea so who would want to rub against them. LVMH? 

LVMH could but they have other thinks to do than run after these kind of things. Not really, they have to take seriously any kind of copy cats, counterfeits, or trademark confusions coming from individuals or organization says Uché OKONKWO at the 2011 International Conference on “Luxury and Counterfeiting" in Geneva.

Brand Equity is made of 4 dimensions: Awareness, Association, Quality and Loyalty.

Brand Awreness is divided into 2 factors:

• Brand Recognition: the capacity of a brand to be known by a specific target. The target may not know what the brand does but they recognize it.
• Brand Recall: given a product category, for instance luxury watch, the brand that a target would mention for this category is brand recall. Recall is more important to get than recognition. Recognition is better than nothing and the first level of brand familiarity.
• Brand Recall helps in building brand consideration sets, i.e., level of awareness in which a target is most likely to buy when searching for internal information at a point of readiness stage.

Sources:

Android Headlines

NELSON MANDELA IS TO BE REMEMBERED FOR ITS LEGACY ON BUILDING A BETTER SOUTH AFRICA

South Africa is considered the 16th largest market for cognac consumption and one of the 2 most fastest growing market in Africa with Nigeria. South Africa is a natural market for cognac. Why? Remember "brandy" is not English but originally a Dutch word, i.e., brandewijn (burnt wine), and South Africa was largely influenced by the Dutch.

South African largest liquor company is named Distell Group Limited. They purchased Cognac Bisquit just a few years ago (2009), and it has just acquired a 60% share in fast-growing liquor distribution company CJ Wines & Spirits‚ expanding its presence in the East.

Privately owned CJ is based in Zhongshan in the Pearl Valley Delta of Guandong province and has operations in Hong Kong‚ Macau and Mainland China. South China is referred to as the country’s “cognac belt” as this is where most cognac is consumed.

The new venture‚ now trading as Distell China‚ is headed by MD Rody Wong‚ who previously ran CJ Wines & Spirits. Wong‚ a former Apple and Seagram executive‚ who has worked in the US and Asia‚ has established a strong support base for the Bisquit cognac brand‚ which Distell bought in 2009. Wong said Distell China’s focus would be on building the presence of Bisquit in the southern part of the country initially.

Today South Africa lost a major personality of its history. Nelson Rolihlahla Mandela  (18 July 1918 – 5 December 2013) died following a long illness on 5 December 2013 at his home in Johannesburg.

Mandela was a South African anti-apartheid revolutionary and politician who served as President of South Africa from 1994 to 1999. He was the first black South African to hold the office, and the first elected in a fully representative, multiracial election. His government focused on dismantling the legacy of apartheid through tackling institutionalised racism, poverty and inequality, and fostering racial reconciliation.

Mandela painted at the DDC. Courtesy of Organ Museum ©2011. Photographed by Thierry Ehrmann.

 He nevertheless gained international acclaim for his anti-colonial and anti-apartheid stance, having received more than 250 honours, including the 1993 Nobel Peace Prize, the US Presidential Medal of Freedom, and the Soviet Order of Lenin. He is held in deep respect within South Africa, where he is often referred to by his Xhosa clan name, Madiba, or as Tata ("Father"); he is often described as "the father of the nation".

We felt so inspired in 1995 when Nelson Mandela, in his first term as the South African President, initiated a unique venture to unite the apartheid-torn land by enlisting the national rugby team on a mission to win the 1995 Rugby World Cup. This story was made famous in the movie Invictus (2009) played with famous actors Morgan Freeman, Matt Damon, and Tony Kgoroge, and directed by Clint Eastwood. 

It was an honor to everyone who met him and an inspiration for freedom.

Source: Fin24

Source: Wikipedia

EXQUISITE COGNACS SUCH AS COMANDON OR BISQUIT, AND VINTAGE COGNACS LIKE FROM 1822 WILL BE AUCTIONED IN PARIS NEXT WEEK

Maître Christophe MOREL from Sarl Christophe MOREL will auction a list of most sought after wine and spirits next week in Paris (Tuesday, December 10 2013 at 2:00 PM in Drouot Richelieu).

This public auction will include a list of rare wines but also an exquisite selection of rare cognacs including: Cognac Comandon Trois Etoiles from the 50s, Cognac Grande Champagne Héritiers Marquis de Lep from the 19th century, Cognac Bisquit Dubouche Trois Etoiles from the 50s, Cognac Grande Fine champagne Grande réserve CAVO from 1822, with the Coats of Arms of Rothschild (avec les armoiries des Rothschild à 4 branches sur l'étiquette), etc.

Sarl Christophe MOREL Auction at Drouot Richelieu 2013

This auction will include very desirable wines such as: Mouton Rothschild 1959 Pauillac, Château Talbot 1961 Saint Julien, Château Latour 1929 Pauillac 1st Grand Cru, Château Cheval Blanc 1967 St Emilion 1st Grand Cru, Château Beau Site 1964 Saint Estèphe, Château La Fleur 1966 Pomerol, Mouton Rothschild 1955 Pauillac, Château Mauras 1970 Sauternes, Château d'Yquem 1901 Sauternes, Mouton Rothschild 1947 Pauillac Magnum, Château Cheval Blanc 1964 Saint Emilion 1st Grand Cru, Château Marquis de St Estephe 1971, etc.

Sarl Christophe MOREL Auction at Drouot Richelieu 2013

SALE VENUE: 

• DROUOT RICHELIEU
  9 rue Drouot
  75009 Paris

EXHIBITIONS :

• Monday, December 9 2013 from 11:00 AM to 6:00 PM : Drouot Richelieu, salle 8.

Sources: Interencheres for Maître Christophe MOREL from Sarl Christophe MOREL

APPLYING PAVLOV AND HIS DOG THEORY TO SELL WINE & SPIRITS

I think consumers should learn more about the true origin of products and what the products are meant to be rather than pay attention to vague details.

In most cases, products are bought for the appeals. Either a physical appeal or a brand appeal or a promotion appeal.

. Physical Appeal: people buy with their eyes and are influenced by aesthetics and fashion.

. Brand Appeal: most sold brands are building growth on the concept of popularity.

. Promotion Appeal: either a discount or an extra products or the use of a celebrity endorsement can increase sales.

. More often than not, consumers are blind sided by simple conditional responses. Let's review 2 conditioned stimuli for the liquor industry.

---> Stimulus 1 = Item descriptions

Three Examples of Item Descriptions

Example 1
Matured in both traditional sherry casks and heavily peated casks. On the nose, it displays aromas of dried bitter orange complemented by softer notes of lemon peels, cardamom and anise. The palate is rich with notes of lemon, grapefruit and toffee that merge with rich spiced apple and liquorice undertone. The long finish leaves behind hickory smoke, toasted cloves and light vanilla.

Example 2
On the nose, it displays bold, complex aromas of orange peel, ginger, nutmeg, clove and other baking spices which are complemented by notes of charred oak, caramel, and a hint of gingerbread. Full-bodied and rich on the palate, sweet, warming notes of caramel and vanilla are followed by rye-spice and mint flavors, which blend seamlessly into butterscotch and dark chocolate on the long, crisp finish.

Example 3
It has been carefully distilled to capture the nuance of the malted barley, then aged in new charred American oak barrels for ten months. The resulting spirit is floral with harmonious notes of vanilla, caramel and sweet spice leading to a hint of dark chocolate on the finish.

. These notes were created to signal quality and to appeal to consumers based on conditioned words. In this situation, the conditioned words are: vanilla, orange, caramel, spice, and chocolate in most case.

---> Stimulus 2: ratings

Another typical classical conditioning is the use of ratings. Ratings are made to help consumers quickly make decisions. Consumers in many situations try to save mental energy and for this purpose they learn in many different ways including classical conditioning. Hence, marketers have created these ratings for this purpose, i.e., to create a simple "heuristic" to speed decision making.

Example:
2010 Château de Somewhere ($49.99): It exhibits a deep plum color as well as sweet aromas of kirsch, cassis, licorice and lavender. Richly fruity and pure with low acidity and terrific purity, it should drink well for 10-12 years. 94 points by XX, 92 points by XX, 90 points by XX

A statue of the Nobel Prize-winning physiologist Ivan Petrovich Pavlov (1849-1936), Institute of Experimental pathology and Therapy, at Sukhumi, Caucasus.

Classical conditioning (also called Pavlovian Conditioning) was made famous by Ivan Pavlov when he revealed the "conditioned reflex" of salivations from his dogs. Pavlov, the "master" was able to dominate his 'dogs' by conditioning them. Classical conditioning is a powerful tool mostly in favor of the marketers (masters) and not so much in favor of the consumers (dogs). Sorry!

Source Photo: Я автор этой фотографии (Wikipedia)

MAISON J.R. BRILLET CREATES COGNAC AMUNDSEN FOR THE NORWEGIAN LIQUOR MARKET

When I was a teenager I dreamt of being an explorer like Indiana Jones, Neil Armstrong, Jack London, or Roald Amundsen etc.

Perhaps, Amundsen more than anyone else because he proved to be the most resilient. He was the least likely to succeed according to its critics, a perfect underdog, and the most patient, perhaps enjoying the greatest popularity after his death. He was the first to use sled dogs for his expedition and constantly innovated to survive in his environment.

Roald Amundsen

Maison J.R. Brillet, for the Norwegian liquor market, created a series of cognac named Amundsen. "In the design concept we went back to the roots, back to nature, and accentuated the taste by using the colors, shapes and movements from the grape fields and from the production" says Per Erik Larsen, the designer.

Cognac Amundsen, for Norwegian Liquor Market by Brillet

Amundsen Cognac

Amundsen Cognac

Amundsen Cognac

The project was in collaboration with Allegro Tønsberg. Amundsen cognac are now available in the norwegian liquor stores.

Sources: Per Erik Larsen

Sources: San Diego Air & Space Museum at Flickr Commons.