CRAFT SPIRIT BUSINESS IS LOOKING GOOD IN THE USA

The last time I check just about 4 or 5 years ago there were approximately 250 distilleries in the USA.

Now this week the Spirits Business online news announces 1315 distilleries in the USA.

What happened?

The US craft spirits industry is booming according to The American Craft Spirits Association (ASCA) and the International Wine and Spirits Research (IWSR).

American Craft Spirits Association Logo

Through collaboration these two organizations are currently running a research called the 'Craft Spirits Data Project'.

Main Findings from the Craft Spirits Data Project:

• The U.S. craft spirits industry is growing rapidly. As of August 2016, there were 1,315 craft distillers active in the U.S. The U.S. craft spirits market reached 4.9 million cases and $2.4 billion in retail sales in 2015, growing at a compound annual growth rate (CAGR) of 27.4 percent in volume and 27.9 percent in value between 2010 and 2015. The market share of U.S. craft spirits reached 2.2 percent in volume and 3.0 percent in value in 2015, up from 0.8 percent and 1.1 percent in 2010, respectively.
• Exports offer an additional runway for growth. Exports of U.S. craft spirits reached 523,000 cases in 2015, adding more than 10% of additional volume to U.S. craft distiller total sales.
• Employment and investment are on the rise among craft distillers. In 2016, the industry employed over 12,000 full-time employees (FTEs). Investments by the U.S. craft industry have reached close to $300 million in 2015, which primarily covered the build out of tasting rooms and other visitor experiences, equipment to increase production capacity, and associated labor costs.
• Geographically, the study found the US craft distilling market to be “concentrated”, with the top five states (states containing the highest number of craft distilleries) making up 35.6% of the category: California, New York, Washington, Colorado and Texas.
• The next five states – Oregon, Pennsylvania, North Carolina, Ohio and Florida – comprise an additional 16.5% of the market.

Source: The Spirits Business; Craft Brewing Business

EDUCATION IS KEY TO COGNAC'S FUTURE: CASE STUDY 'LA MAISON REMY MARTIN'

Rémy Martin Cognac is hosting an interactive experience which will allow the guests to immerse in the universe of Rémy Martin and its One Life & Live Them lifestyle. 

This interactive experience is called "La Maison Rémy Martin".

La Maison Remy Martin Logo

It is starting from late October to late November in 3 cities: New York, Chicago, and then Los Angeles .

The experience will consist in giving you a view into cognac; from the grapes on the vine, to the blending process, to the magical cellars where cognac is aged.

You will discover the century’s old artisanship behind cognac making with a contemporary lens through curated workshops and interactive programming.

The objective: get the millennials, largest drinking age group to experience the authenticity and quality of craftmanship needed to make cognac. They will learn about (1) Terroirs, (2) People and (3) Time.

Drinking cognac is an experience and a lifestyle.

Sources: http://www.lamaisonremymartin.com

A LITTLE BIT ABOUT MAX COINTREAU

Max Cointreau passed away last Wednesday 19th October 2016 at aged 94.

He was a prominent figure in the wine and spirits since 1942, being related to Renaud Remy Martin, Frapin, Domaine Château de Fontpinot, Cointreau SA, Vedrenne and Gosset Champagne.

Frapin, Château de Fontpinot

His involvement in the cognac industry, and the drinks trade more widely, extended far beyond into political leadership as as a president of the National Union of Liquor Manufacturers, of the GIE Grandes Liqueurs de France and president of the Social Commission of the National Council of Wine and Spirit for eight years, and as the mayor of his home town Gensac la Pallue from 1969 to 2001.

Sources: Frapin, Imbibe, La Republic.fr

BOURBON-LIKE MASTER BLENDER'S SELECTION FROM HENNESSY COGNAC

Hennessy is trying to capitalize on the bourbon whiskey boom by making a cognac that emulates the tasting notes of a bourbon, a new cognac called the 'Master Blender's Selection' = MBS.

According to adult beverage research firm IWSR, sales of super-premium bourbon increased 28.8 percent from 2011 to 2015. Meanwhile, comparable cognac sales increased 9.5 percent.

A more biting 43 percent ABV, a distillation with high levels of lees, not just fermented juice but skins too. Tastings show more spices and long finish with candied apricot and almond notes, and rugged square bottle shape.

Hennessy MBS 1, Bourbon Like

Another particularity of MBS, is that these cognacs are supposed to be one-off production. This goes against the tradition of making consistent cognac made the same year-after-year.

This is a great idea, and I expect a number 2 and 3 and so forth...

Master Blender’s Selection No. 1 will be available in 375ml ($45) and 750ml ($80) sizes, with a total case run of 9,300, sold exclusively in the U.S. When it’s gone, it’s gone.

Source: Bloomberg

WANT TO LEARN MORE ABOUT COGNAC IN YOUR NEXT VISIT? CHECK COGNAC TASTING TOUR

To learn about the various facets of the Cognac why not taking a day tour with one of the most dynamic and enthusiastic experts in the region: Cognac Tasting Tour.

about Cognac Tasting Tour

They even offer accomodations to their guests in their family run B&B in the heart of the Grande Champagne in St-Preuil.

Cognac Tasting Tour Photo

Other activities offered are golf, ballon rides, but also visits of the Bordeaux vineyards as well as masterclasses in cognac tasting.

Twitter: https://twitter.com/CognacTasting

Source: Cognac Tasting Tour

TATTOO ARTIST SCOTT CAMPBELL SIGNS LAST HENNESSY COGNAC LIMITED EDITION VS

The Hennessy V.S Limited Edition by Scott Campbell embodies a shared a passion to Blend the Unexpected with artistry and expertise.

Hennessy VS Scott Campbell

The Hennessy legacy of artistic collaboration continues with Hennessy V.S Limited Edition by Scott Campbell. It is the sixth in a prestigious series that includes world-renowned artists such as Shepard Fairey, Futura, and Ryan McGinness.

[youtube https://www.youtube.com/watch?v=rWvh6qxVqFk&w=560&h=315]

Hollywood’s famous tattoo artist Scott Campbell uses his design talent usually applied to tattoos for the limited edition label VS from Hennessy. Very graphic, round lines and a touch feminine characterize Scott Campbell's style and can be easily recognized on the label.

It looks very nice and why not!

Hennessy VS Scott Campbell

Source: Hennessy.com

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2016 MIGHT MARK RECORD COGNAC SALES

Before the holidays seasons cognac sales are already showing a strong sales for 2016 in the

"Shipments of Cognac to the U.S., by far the global category’s largest market, crossed the 5-million-case mark on 13.5% growth last year, driven by the double-digit progress of Hennessy, Rémy Martin and Martell" says Shanken Daily News.

With growth continuing in 2016, U.S. depletions could hit 5 million cases and value could cross €1 billion ($1.1b) by year-end.

Impact Databank Cognac Sales in the USA, October 2016

1. Hennessy continues to dominate the category, accounting for 44% of worldwide volume and 66% of the U.S. Cognac market. With its global volume expanding by 55% since 2005, to 6 million cases, Hennessy has risen to become the world’s third most valuable spirits brand by retail sales, at $3.5 billion (trailing only Johnnie Walker and Smirnoff). “A significant portion of consumers drinking white spirits a few years ago have come over to Hennessy,” says Giles Woodyer, senior vice president, Hennessy at Moët Hennessy USA.
2. Rémy Martin remains a distant second to Hennessy in the U.S., but it too has been on an impressive run. In the 12 months through June, Rémy Martin posted a 15% increase in U.S. depletions, and in the first half of this year the brand’s VSOP jumped 20% in IRI channels.
3. Martell, which neared 100,000 cases in the U.S. last year, is getting increased focus in the market. Brand-owner Pernod Ricard is looking to leverage robust trends in both Cognac and Bourbon with a new hybrid product, Blue Swift ($50), which was finished in Kentucky Bourbon barrels.
4. Bacardi’s d’Ussé brand has also been making strides. Thus far in Bacardi’s fiscal year (beginning in April), d’Ussé’s revenues are up 20% compared with last year, led by its VSOP quality ($50). Meanwhile, senior brand manager Tyler Phillips tells SND that d’Ussé XO ($230), which continues to expand into new markets, is growing exponentially from a small base.
5. Beam Suntory’s Courvoisier brand sells about one-third of its volume in the U.S. market.

The Cognac category comprises about 4% of all spirits by dollar value in the U.S., according to Nielsen, but it’s growing at 19%, compared with total spirits category growth of 6%.

The whisky category revival has inspired greater consumer interest in brown spirits, specifically among multicultural millennial males. They are looking for premium brands that project success and sophistication, and so Cognac is well-positioned to get their attention. 

Hence, non premium cognac brands such as Salignac and Ansac are seeing negative growths in comparison.

Source: Shanken Daily News