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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29 StateWays Q www.stateways.com Q November/December 2014 Delamain, another family-owned house which only produces Grande Champagne Cognacs at XO range and above, repackaged its Delamain Vesper (a blend of 30- to 35-year Cognacs) and introduced rare vintage bottlings — limited edition Delamain 1963, 50 year olds; and Delamain 1973, 40 year old, both single-cask, single estate, Grande Champagne Cognacs. A. Hardy USA introduced its new VSOP Organic Cognac, certifi ed by Ecocert, meaning it contains all-natural ingredients and no chemical additives. BRANDY RISES WITH WHISKEY M eanwhile, American brandy marketers are exploiting their commanding position to roll out fl avored itera- tions to introduce new consumers to brandy. Anna Bell, director of marketing at E&J brandy, says the growth of American whiskey can be useful for brandy marketers. "The resurgence of whiskey can be looked at as a threat to brandy or as an opportunity. As whiskey grows, shelf space demands are putting the squeeze on brandy. Moreover, brandy is all but invisible to the Mil- lennial drinker these days – if they have even heard of brandy, they have no idea what it really is or how to drink or why they should drink it. "E&J believes brandy has a unique opportunity in midst of the current whiskey boom to tell its own story. Trade and consumers seem receptive to learning about and trying new variants of whiskey. We believe we can le- verage this circumstance to restart a conversation, maybe even a revival, with brandy; and as the leader of the American brandy category, we truly believe E&J should lead that conversation." Another opportunity lies with the growth of Cognac. "We believe the growth in Cognac has trickled down to the brandy segment, since it is priced more competi- tively," says Vicky Arcos, brand director at Paul Masson Grande Amber Brandy. The brand does especially well in Texas, New York, Georgia and Maryland, accounting for Courvoisier VS, VSOP, and XO 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 Arma- gnac 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 vineyard 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 distrib- utes 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." about 30 percent of total volume. Last spring, the Con- stellation brand explored the explosion of fl avor innova- tions by launching Paul Masson Grande Amber Peach, with sales surging since then. "Consumers are more apt to try new and novel things and fl avored brandy falls into that. There is a huge opportunity to capitalize on the growth of the category by developing new products that excite the consumer, while also staying true to the core brand," she says. Mary Crae Guild, spokesperson on brandy for Chris- tian Brothers, says their introduction of honey fl avor in 2011 and this year's peach has attracted new interest and consumers to the category. Christian Brothers also pro- duces a fi ltered clear version of VS, called Frost, which has extended the traditional American brandy offerings beyond VS, VSOP and XO. She sees cocktails presenting hope to brandy market- ers, just as it has for Cognac producers. "The category has been a bit soft, but it has become a lot steadier in the recent years but with the resurgence of cocktail culture," she says. "We have seen some lift as well as some excitement for the fl avored brands, espe- cially from younger and ethnic consumers."