The Charente Scene – Autumn 2014

A Flood of Cognac

It seems somewhat crazy that this time last year we were expecting cognac price increases to be as high as in previous years but, in actual fact, the price has held steady and may even drop. Suddenly we have an excess of very young, good cognac and distillers are seeking to find customers for unsold stocks.  So why has this dramatic change occurred? Well it is all to do with the big houses not needing to buy so much eaux de vie for their blends.  The vast Chinese markets have reduced considerably the quantity of top quality cognac they purchase. This is a direct result of austerity and anti-corruption measures introduced by the Chinese authorities. Luxury cognacs have always been seen as ideal gifts in China and the more expensive they are the better.  In the past, those presenting them have been more able to convince their bosses and business associates to continue with their services. It seems that the authorities seek transparency in the ways of doing business in China. Can’t argue with that!