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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27 StateWays ■ www.stateways.com ■ November/December 2014 and we're working 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 emerg- ing brands trying to stand out with different fl avor pro- fi les to develop new occasions. "The entire category needs to push Cognacs as an alternative to brown spirits and even other spirits, as mix- able especially at the lower price points," he says. EDUCATING CONSUMERS I t's also important, say some, to take the solid period as an opportunity 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-category's increase). Its recent success have been a re- sult 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 participation of hip-hop artist Nas, part of the way the brand keeps current and engages new legal age drinkers. Recent pack- aging innovations include another edition of the brand's artist-designed Limited Edition VS bottle, and a rede- signed Privilege Limited Edition VSOP presentation. Hennessy isn't the only brand immersed in hip-hop culture. Bacardi's newcomer D'Usse, which recently launched in select markets a limited release XO ex- pression made from a blend aged at least 10 years, has leveraged the endorsement of rapper Jay-Z in its marketing, 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 dominated by a few large brands, it is still a relatively uncluttered category. With D'Usse, we saw an opportu- nity for a new brand that is different from the current offering — we felt there was space to reinvigorate a category with an authen- tic, super-premium Cognac innovation that leverages two centuries of Cognac-making history with a modern sensibility." D'Usse 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 Steady As They Grow