Asian demand forces cognac prices upwards

Demand for cognac in China increased by another 15% last year with Singapore also seeing a 10% rise.   This continuing trend exerts even more pressure on a market which is already struggling to meet demand.   It is the Asian taste for superior, older (VSOP/XO) cognacs in particular, that is having such a tremendous effect on prices.  In 2012 the wholesale price of cognac rose by 14% and this year another 24% increase is expected.  Customers buying on the high street can therefore probably expect to pay around 15% more than they did last year.

The growing demand is forcing big commercial negoçiants to blend younger cognacs for their products.  To meet customer expectation more additives are required, producing an inferior quality cognac vastly different from the pure, unique single estate varieties.