Beverage Dynamics

Beverage Dynamics Nov-Dec 2014

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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www.beveragedynamics.com November/December 2014 • Beverage Dynamics 19 W hile much of talk lately in the spirit business has been about the surge of whiskey sales in the US, the other brown spirit — brandy and Cognac — has managed to rebound quite nicely from the economic turmoil of a few years ago and even build on a solid growth trend here. Bolstered over the past few years by a steady growth trajec- tory, the major Cognac houses have produced line extensions in- corporating contemporary ideas in aging, taste and marketing, and W BRANDY AND COGNAC: STEADY AS THEY GROW BY JACK ROBERTIELLO spruced up the look of many of their tradi- tional fl agships. Newer brands are appear- ing as well, and older, smaller houses are concentrating on building a stronger base here, using cocktail culture as a launching pad to build interest at retail, although the three leading brands account for about 90 percent of volume. All of which has led Cognac to solid sales: overall, according to Beverage Infor- mation Group fi gures from 2013, the sub- category was up 3.4 percent. Similarly, among American brandy brands, the three category leaders are re- sponsible for about 90 percent of volume, and accounted for most of the growth. Do- mestic brandy was only able to notch a 1.4 percent increase last year; in total, including the faltering imported brandy (excluding Cognac) sub-category, which was down 4.2 percent, all of brandy and Cognac grew by a healthy if not impressive two percent in 2013. MIXABILITY DRIVING GROWTH While traditionally seen as a sipping bev- erage and a luxurious, aspirational spirit, Cognac has made inroads at the VS end by developing interest in the less expensive age expression as mixable, says Agnès Aubin, marketing director of the Bureau National Interprofessionnel du Cognac, the agency that represents Cognac producers interna- tionally. "The consumption of Cognac VS has grown seven percent in volume in 2013- 2014 because of the cocktail industry. VS is used to create very rich and aromatic cock- tails that perfectly fi t with the U.S. palate." It's the way forward, according to most brand reps — creating multiple occasions for new consumers beyond contemplative sipping. "Across all demographics, we have seen Cognac consumption lean towards mixology, both on-and off-premise," says Claire Richards, Director of world whiskey Stable and rising, American and French brandies had a good year. "Across all demographics, we have seen Cognac consumption lean towards mixology, both on- and off-premise." — Claire Richards, Director of world whiskey and Cognac at Beam Suntory.

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