StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions
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StateWays ■ www.stateways.com ■ November/December 2014 26 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 trajectory, the major Cognac houses have produced line ex- tensions incorporating contemporary ideas in aging, taste and marketing, and spruced up the look of many of their traditional fl agships. Newer brands are appearing 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 Information Group fi gures from 2013, the sub-category was up 3.4 percent. Similarly, among American brandy brands, the three category leaders are responsible for about 90 percent of volume, and accounted for most of the growth. Domes- tic 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 W hile traditionally seen as a sipping beverage and a luxu- rious, aspirational spirit, Cognac has made inroads at the VS end by developing interest in the less expensive age expression as mixable, says Agnès Aubin, market- ing director of the Bureau National Interprofessionnel du Cognac, the agency that represents Cognac produc- ers internationally. "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 cocktails 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 and Cognac at Beam Suntory, which im- ports Courvoisier. "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. Fans have also realized new occasions for enjoying Cognac, expanding beyond tradi- tional, expected scenarios such as after-dinner," she says. "It's still fundamentally intriguing to the consum- ers, the idea of Cognac 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, STABLE AND RISING, AMERICAN AND FRENCH BRANDIES HAD A GOOD YEAR. BY JACK ROBERTIELLO Brandy and Cognac: