Move to develop easier International shipments
Over the years we have gradually expanded our stores and offices but with the potentially massive markets in China and the Far East developing, we have decided to ship to these markets direct from where the cognacs are made. Sales of cognacs to China have grown massively in the last few years and we have had many enquiries for our Hermitage cognac range. Our facility in France will be associated alongside one of our key distributors near Segonzac in the very heart of Grande Champagne which is the top cru of Cognac.
The opening of the company in France will enable us to handle the taxation and duty more easily, thus avoiding shipping through UK bonding facilities, saving both cost and time. It will enable us to load larger shipments and send them direct to their destinations – this will be particularly attractive to the Far East markets. Initially the facility will be just offices and stores for holding the cognacs, but this gives us the opportunity to develop and install much larger tanks for holding cognacs. When shipping larger orders to the Far East, the need for holding thousands of litres of cognac becomes critical. We measure and buy cognac by the hectoliter of pure spirit, that is to say 100 litres at 100% alc. Of course it is never at that strength, but for taxation purposes it is essential we know how much alcohol we are moving at any one time. One hundred litres of pure spirit is the equivalent of 357 70cl bottles of cognac at 40% alc. So, if as hoped we are able to ship full containers – which are the equivalent of 900 cases of 12 bottles – we will require more than 2800 litres of pure spirit or 7000 litres at 40% – a not insignificant quantity!