The Charente Scene – Winter 2016

Very much as expected, the grape harvest in 2015 is producing one of the best and biggest quantities of distilled spirit ever.  It looks like the total will be well over 800,000hl, indicating a record year.  Despite this, many distillers are fearful of a new demand on cognac from export markets, especially the USA where a record 4.3 million cases (51.6 million bottles) were sold last year. The US market is predominantly led by Hennessy whose share is 67%, the majority of which is of VS quality.  It has been made popular by influential rappers such as Nas and Jay-Z and the trend seems to be increasing.  Many of the distillers who sell their cognacs to Hennessy believe that surges in demand, such as that from China a few years ago, will lead to their instability; the current large production requirement may not be needed in 2 -3 years’ time.  In contrast, many of the Hermitage vintages have been aged for decades and are now in extremely short supply.  Take a look at the Hermitage 1903 for example, only a couple of bottles remain.