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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22 Beverage Dynamics • November/December 2014 www.beveragedynamics.com Brandy & Cognac ardi's newcomer D'Usse, which recently launched in select markets a limited release XO expression made from a blend aged at least 10 years, has leveraged the endorsement of rapper Jay-Z in its market- ing, while Conjure Cognac is co-owned and promoted by Ludacris. Stacy Belter-Saltiel, Brand Manager at D'Ussé, says there's lots of room for new brands to emerge here. "Although Cognac is domi- nated by a few large brands, it is still a relatively uncluttered category. With D'Usse, we saw an opportunity for a new brand that is different from the current offering — we felt there was space to reinvigorate a category with an authentic, super-premium Cognac innovation that leverages two centuries of Cognac-making history with a modern sensibility." Other brands are focusing on updating their packaging and connect- ing with new consumers. Rémy Martin recently unveiled a new look for its VSOP packaging with a richer red label and focus on the brand's Centaur symbol. In 2013, LOUIS XIII launched the second edition of a Rare Cask — a cognac that was discovered by the prior Cellar Master, Pierrette Trichet as she conducted routine tastings. Initially intended for classic LOUIS XIII, it was found to have a slightly different taste profi le and alcohol content, and was bottled as a limited edition. Going forward, the brand hopes to build the reputation of Co- gnac as a quality spirit, says Emma Medina Vice President of Rémy Martin VS, VSOP, V & 1738. "We believe that consumers need a deeper understanding of what makes Cognac a unique brown spirit and how to enjoy the product. Educating consumers on how Cognac is made — from select- ing the grapes, to distillation, to aging and blending, is an important part of fostering a greater appreciation for this category. This is why Rémy Martin has created the immersive Heart of Cognac Experi- ence, an interactive consumer education program, to give consumers the confi dence in selecting Rémy Martin as their spirit of choice." The Heart of Cognac Experience will travel to seven cities across the LEADING BRANDS OF BRANDY & COGNAC (Thousands 9-Liter Cases) 12/13 Brand Origin Supplier 2012 2013 % Chg E & J USA E & J Gallo Winery 3,120 3,150 1.0% Hennessy France Moet Hennessy USA 2,270 2,390 5.3% Paul Masson Brandy USA Constellation Wine 1,295 1,345 3.9% Christian Brothers USA Heaven Hill Distilleries 1,135 1,135 0.0% Remy Martin France Remy Cointreau USA 634 621 -2.1% Courvoisier France Beam Inc. 414 412 -0.5% Korbel USA F. Korbel & Bros. 308 325 5.5% Salignac France Beam Inc. 90 104 16.1% Coronet Brandy USA Heaven Hill Distilleries 100 88 -12.0% St. Remy France Remy Cointreau USA 87 87 -0.4% Total Leading Brands 9,454 9,657 2.2% Others 1,036 1,038 0.2% Total Brandy & Cognac 10,490 10,695 2.0% Source: The Beverage Information and Insights Group. To learn more go to www.bevinfostore.com ARMAGNAC'S RETURN E xcept for the fact that they are both French grape brandies made with rules that govern their production, the paths of Cognac and Armagnac couldn't be more different. Neglected internationally for many years, the fortunes of Armagnac are on an upswing lately, with the governmental agency in charge reporting sales in the U.S. up 34 percent in volume from July 2013 to June 2014 – and up 40 percent alone in the fi rst half of this year. This is off a very small base, but for fans the return of the robust and complex Gascony spirit has been heartening. In a region where ducks outnumber people 500 to 1, it's not surprising that the methods used to create Armagnac are very traditional; many Armagnac stills are heated by open wood-fueled fi res. Sometimes they're heated in stills that once travelled from vine- yard to vineyard, with family gatherings in the still house a high point of the distilling season only a few weeks a year. Either twice-distilled in pots or single-distilled in small continuous stills, Armagnac is known for intensity of fl avor, a greater impact of fruit and spice and less interest in a mellow and smooth Cognac style. Christine Cooney, whose Heavenly Spirits imports and distributes fi ve labels of Armagnac and four Cognacs, says her business has been growing steadily over the last fi ve years. "We attribute that growth to a general interest among American consumers in artisanal spirits from all over," she says. "Even though that's a term overused and misused, Armagnac is nothing if not artisanal."

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