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.
Issue link: http://read.dmtmag.com/i/421848
20 Beverage Dynamics • November/December 2014 www.beveragedynamics.com Brandy & Cognac and Cognac at Beam Suntory, which imports Courvoisier. "The consumer has realized that it is possible to mix certain mar- ques to create unexpected cocktail recipes, and also to provide more character to classic cocktails like the Old Fashioned and Sidecar. Fans have also realized new occasions for enjoying Cognac, expanding beyond traditional, expected scenarios such as after-dinner," she says. "It's still fundamentally intriguing to the consumers, the idea of Co- gnac in mixed drinks," says Rodney Williams, senior vice president for Hennessy at Moët Hennessy USA. "But there are really accessible, deli- cious, refreshing cocktails to be made with Hennessy, and we're work- ing with a team of mixologists to engage the Millennial in particular." Matthew Grace, COO for CIL US, importer of Camus Cognac, says it's especially important for emerging brands trying to stand out with different fl avor profi les to develop new occasions. "The entire category needs to push Cognacs as an alternative to brown spirits and even other spirits, as mixable especially at the lower price points," he says. EDUCATING CONSUMERS It's also important, say some, to take the solid period as an oppor- tunity to educate the trade better about Cognac. "Cognac makers should spend more time to educate the trade and consumers rather than appeal to their luxury," says Guillaume Lamy, VP Americas for Cognac Ferrand. "Too many people think of Cognac as an overpriced marketing product, rather than as an authentic spirit with history and quality." While growth has been steady here, the recent retreat of the Asian market, particularly China, has augured a return to focus on the U.S. for growth. However, recent reports from observers indicate price reductions are being taken at year end to boost sales. Meanwhile, brands executing a steady marketing and advertising plan have mostly been able to maintain growth, though that growth came mainly due to the power of U.S. best-seller Hennessy — last year up more than fi ve percent (a volume equivalent to the entire sub-cat- egory's increase). Its recent success have been a result of fl exibility in price and image of its broad portfolio and an aggressive advertising effort, particularly devoted to increasing cocktail drinking occasions, Williams says. Cognac benefi ts from what he calls a retreat to quality, especially as young consumers are looking for authenticity as they discover spirits. As for marketing, Hennessy's recent advertising campaign, "Never Stop. Never Settle." will continue, with increased participa- tion of hip-hop artist Nas, part of the way the brand keeps current and engages new legal age drinkers. Recent packaging innovations include another edition of the brand's artist-designed Limited Edition VS bottle, and a redesigned Privilege Limited Edition VSOP presentation. Hennessy isn't the only brand immersed in hip-hop culture. Bac- D'Usse XO Rémy Martin VSOP, and 1738 Courvoisier VS, VSOP, and XO "The consumer has realized that it is possible to mix certain marques to create unexpected cocktail recipes, and also to provide more character to classic cocktails like the Old Fashioned and Sidecar." — Claire Richards, Director of world whiskey and Cognac at Beam Suntory.