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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.