Beverage Dynamics

Beverage Dynamics Nov-Dec 2012

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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Camus recently introduced three expressions with a maritime con- nection, collectively called Ile de Ré after the island off the west coast of France where the grapes are grown. "We're very excited that Cognac is growing and we see many opportu- nities on the horizon as consumers appreciate the fact that Cognac can be enjoyed neat or in a mixed drink, and we're increasingly engaging new and younger consumers to experience Hennessy in a mixed drink," Williams says. This year the brand launched one of their biggest advertising and marketing campaigns around Hennessy VS, trying to connect with younger consumers, based on the notion of pushing the limits of one's potential "which we feel resonates pretty powerfully with some of the challenges young adults face today," he says. Called "Never stop, never settle" the campaign employs ads with boxer Manny Pacquiao, director Martin Scorsese and singer Erykah Badu. Cognac has long been tied to night- clubs, African-Americans, Asians and the luxury markets, and the slowly improving economy bodes well for the category in the near term, says Emma Medina, Rémy Martin senior brand director. "The trend is certainly returning towards quality and luxury goods. While the cognac category remains flat, super premium cognacs are reporting double digit growth and we con- tinue to see increased demand for luxury spirits." Searching for Higher Marques that lately, the increased interest in the higher marques has created chal- lenges for retailers – suppliers simply don't have enough. A Martell has focused on the marques above VSOP in the U.S. and Iglesias agrees success has created issues. "When you are focusing on a higher marque, the plan- ning is more complex. We depend on the Borderies region for Martell, which is very small and can only pro- duce a limited amount of and we basically make all we can get our hands on." Earlier this year Bacardi launched D'usse V.S.O.P. Cognac, from the famed Chateau de Cognac, in limited markets and intends to expand distribution. Even new brand D'Usse is being careful to make sure they can supply their customers. The brand's initial offer- ing, a VSOP only now available in New York, with perhaps two more major Cognac markets to come by year's end, was designed to be spicier and woodier than other expressions coming from the Otard house, according to Giles Woodyer, brand managing director of D'Usse. The slow roll-out in the U.S. is caused by a need to manage their supplies carefully to make Leading Brands of Brandy (Thousands 9-Liter Cases) 10/11 Brand Origin Supplier 2010 2011 % Chg E & J . . . . . . . . . . . . . . . . . .USA. . . . . . . E & J Gallo Winery . . . . . . . . . . .3,055 . . . . . . .3,070 . . . . . . .0.5% Paul Masson Brandy . . . . .USA. . . . . . . Constellation Wine . . . . . . . . . . . .1,307 . . . . . . . .1,300 . . . . . .-0.5% Christian Brothers . . . . . . .USA. . . . . . . Heaven Hill Distilleries . . . . . . . . .1,180 . . . . . . . .1,150 . . . . . .-2.5% Korbel . . . . . . . . . . . . . . . . .USA. . . . . . . Heck Estates . . . . . . . . . . . . . . . . . . .315 . . . . . . . . .310 . . . . . . .-1.6% Presidente . . . . . . . . . . . . .Mexico . . . . Pernod Ricard USA . . . . . . . . . . . .135 . . . . . . . . . .118 . . . . . .-12.6% Coronet Brandy . . . . . . . . .USA. . . . . . . Heaven Hill Distilleries . . . . . . . . . . .128 . . . . . . . . .105 . . . . . .-18.0% Raynal . . . . . . . . . . . . . . . . .France . . . . White Rock Distilleries . . . . . . . . . . .85 . . . . . . . . . .85 . . . . . . .0.0% St. Remy . . . . . . . . . . . . . . .France . . . . Remy Cointreau USA . . . . . . . . . . . .86 . . . . . . . . . .85 . . . . . . .-1.2% Mr. Boston Brandy . . . . . .USA. . . . . . . Sazerac . . . . . . . . . . . . . . . . . . . . . . . .55 . . . . . . . . . .55 . . . . . . .0.0% J. Bavet . . . . . . . . . . . . . . . .USA. . . . . . . Heaven Hill Distilleries . . . . . . . . . . .49 . . . . . . . . . .55 . . . . . .12.2% Total Leading Brands Others 6,395 451 Total Brandy Source: The Beverage Information Group 16 • Beverage Dynamics • www.beveragedynamics.com • November/December 2012 6,846 6,333 407 6,740 s BevMo!'s Carmon points out, Remy VSOP drives that tier of the Cognac trade, but -1.0% -9.8% -1.5%

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