Cognac distributors in China are failing to obtain sufficient stocks to fulfill demand. Many producers in Cognac are under pressure to supply valuable stocks to major negoçiants for blending in VSOP, XO blends. The shortage of supply is forcing prices up and leading to higher costs of new cognacs. Thousands of distillers all over the region are being asked to supply even younger cognacs for blending, with inevitable loss of quality. Industry body the Bureau National Interprofessionel du Cognac (BNIC) said more than five bottles were sold every second in 2011, the total number of bottles sold rose by 6.4% to 162.9 million.

The Far East, which accounted for more than one-third of demand, was the biggest and fastest-growing market with volumes up 14.4%. Sales in China alone rose by 20% the BNIC figures reveal. Growth in Europe was more modest, with the region’s volume sales edging up by 0.4% to 46.9m bottles, while demand in North America rose 3.2% to 50.8m bottles.

Speaking to Reuters, Rémy Cointreau chief executive Jean-Marie Laborde spoke of his optimism for the coming year and his belief that the recovering US market, coupled with the rapid growth in Asia, will help counteract the continuing economic struggles in Europe. Laborde said that sales in the October-December period in particular had exceeded expectations, mainly due to increased Cognac shipments ahead of the Chinese New year. Is big brand optimism good for cognac? Certainly not for quality!

Cognac Prices Soar

The increasing demand for cognacs in the world markets should have been a warning to the industry and this could have been the case, except for a blip in demand in 2008 when fears for the world economy led to fears that we were producing too much.

Unfortunately, this was followed by a poor harvest and the damage to stocks was complete whilst demand, especially in SE Asia is marching on. The shortage of 5-10 year old eau de vie this year is forcing prices up in some areas by as much as 20% and in Grande Champagne price increases have already been as high as 14%.

Price increases for younger cognacs have not been quite so severe and older cognacs are only marginally higher at the moment. Trends in past years suggest that prices for ten year old cognac will drop around September since the big houses set their contracts at the beginning of the year. Many of the smaller distillers who rely on the big negoçiants will be looking to sell stock around September which should ease the pressure for smaller sellers.

This year has been our best year so far for new products and exciting new markets. Our range of customers has increased and now includes many overseas in countries as far away as China and Russia, as well as our Middle East Friends who have been active again in 2011. The increasing demand for our products proves again and again how customers seek pure naturally aged cognacs with age statements.

Of course, this also means that the need for greater depth of knowledge of cognacs and brandies has grown, and as from next year we will be introducing a different monthly mailing, which will include more opportunities for you to learn more about our wonderful brandies.

We hope that you will still enjoy reading about them!

 Christmas is an extremely busy period for everybody in the cognac industry. Distillation is now at its peak and there are more than 4000 producers who will be working to ensure that they get the very best from their grapes.

Much depends on their skills and years of experience. Every distillation will be different, since there are so many factors that can influence the quality of their eau de vie. This is also the time for trade fairs and many small firms will be attending to sell their cognacs all over France. Christmas lunch at a distiller will include regular checking of the stills.

Of course it will be many years before this years hard work is ready for sale as cognac, but more immediately the Eaux de Vie are for sale. For those of you that wish to sample the produce of more recent years vines, we sell a range of Eaux de Vie from Paul Devoille, Nusbaumer and F.Meyer

Cognac goes from strength to strength

The last twelve months of the year have seen the most exciting period in the history of Cognac. The Cognac industry has seen unprecented growth in world markets at a time when it seems that the news is dominated with gloom and economic recession. Markets in China have grown by record levels and that is over last year which was also a record year. Indeed some distributors in China have even had to ration their supplies of cognac.

At Brandyclassics we to have seen good trading, not just in exports but also in the UK, where Pre-phylloxera sales have done well and our internet sales has also seen good growth. However our core business, sales to hotels and restaurants, has been affected by the economic gloom.

But  it’s always good to finish the year on a high and this year we are pleased with our success at the Cognac Masters where we have won a total of five medals. These included three masters awards for our Hermitage 1988, 23 year old and 43 year old, as well as the Grand Masters award for outstanding contribution to cognac.

The Ladies Drink Cognac too…

In a recent disclosure, the drinks firm Beam have claimed that it has taken them 216 years of marketing to realise that ladies drink spirits as well as men. Beams marketing chief asked his team to establish what they were missing out on and introduced a range of spirit based drinks that they feel women will enjoy.

Top of their bunch was a Jim Beam Bourbon infused with black cherry. Since then they have purchased Skinny Girl cocktails and Pucka Vodka. Now guess what? Courvoisier Cognac have introduced Rose Courvoisier, a red wine and cognac mixture.

At Brandyclassics we are already selling the perfect Ladies Cognac. Hermitage 10 y.o. is recognised by bar managers and sommeliers as the perfect Ladies Cognac.

Croizet 1858 sells at Auction for US$156,000

Last month, the highest known price for a bottle of Croizet Vintage 1858 Cognac was paid by a Chinese client. The Cognac is one of many the house has in its cellars and the firm is known for its collection of these old cognacs, many of which were bottled and kept in their cellars in St-Même-les-Carrières near Jarnac.

The price paid for the bottle reflects the growing desire of the Chinese to own expensive cognacs, particularly those whose vintages contain a number eight. Although the price is high, the desire for expensive cognac has grown with the market and its association with good luck and status.

Around eighteen years ago Brandyclassics sold twenty four of these bottles to a Swiss gentleman who flew in specially to collect them – he paid about £18,000 for 24 bottles.

Prices have increased somewhat since then!

In addition to our range of exceptional early 20th century cognacs and armagnacs, Brandyclassics have a number of rare 19th Century Pre-phylloxera cognacs available for the discerning Cognac aficionado.

Bouteville. Home of Hermitage 1900 Grande Champagne

As most of our customers are aware, Hermitage Cognacs come with age statements and it can be difficult sometimes to find enough to supply the market needs. Clearly younger cognacs are easier to find than older ones, but the need for quality means that we have to reject many vintages where we feel that they will neither fit into our range or are not of a quality suitable for the Hermitage name. There is a big demand for vintages – far more than generically labelled blends – since customers are fast becoming disillusioned with the highly modified big brands.

At Brandyclassics we work hard to find cognacs that we know our customers want and we have recently added a number of new cognacs to our range. Amongst the new finds are a beautifully light and clean 1988 Grande Champagne and a superb 1900 at 47.5% from Grande Champagne. These cognacs are masterpieces and deserve to be enjoyed.

Different interpretations of the name Cognac in European countries have lead to a host of challenges for the BNIC lawyers in Cognac. Spirits can only be called cognac if they are made in The Charente region of France and comply with a list of other conditions designed to protect both its quality and heritage.

During the last few years variants of the name have cropped up. The Russian word “Conyack” means in Russia the same for brandy and Cognac, whilst in Finland there is a case concerning the use of the word Konjakki to describe the brandy sold by Oy Gust Ranin. In Hungary too, the word Konyak has been used and this has occurred in many other eastern European countries to describe their brandy. Perhaps the most unusual is the use of the word cognac to describe a range of clothes in Turkey.

For the time being however, imitation is the sincerest form of flattery…

The House of Frapin, world famous for their cognacs, also produce a small range of perfumes and colognes.  Since the launch in 2002, their most popular product is 1270 – so named after the year when they commenced their wine and cognac production.

But the family of Frapin are no strangers to this world; indeed, back in the 16^th Century one of the descendants of the original Frapin family, Pierre Frapin was Apothecary to the king.  But today, with their niche range of perfumes and cognacs, the House of Frapin produces a quality range which has proved very popular amongst both cognac aficionados and perfume lovers. Jean Pierre Cointreau of the House of Frapin says ‘Perfume is comparable to cognac in that it all comes down to the soil and how you work on it.  It also has a lot to do with the senses; with flavours and with smell.’

For the most complex perfume, we suggest Hermitage!