Beverage Dynamics

Beverage Dynamics Nov-Dec 2015

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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42 Beverage Dynamics • November/December 2015 www.beveragedynamics.com Brandy/Cognac brandy accounts for 59.4% of the category, according to the Beverage Information & Insights Group. All told, domes- tic and imported brandy garner a healthy 5.2% share of the distilled spirits industry in the U.S. "Brandy and Cognac sales really pick up during the hol- idays," affi rms Peter Herlofsky III, wine manager at Liquor Boy Wine & Spirits in St. Louis Park, Minn. And customers are generally feeling more generous, spending a little more than usual and trading up in quality. "Holiday sales are on the more premium end of brandy and Cognac, especially Cognac," he adds. "When they get invited to somebody's house, instead of bringing over a bottle of E&J Brandy like they nor- mally would, they'll bring over some Hennessy Cognac. Or go even more premium for a good friend." Cognac sales spike in the last few months of the year, Herlofsky says. Indeed, many Cognac houses report that year-end sales are big business. "The holiday season is important to us; the fourth quarter accounts for around 45% of our yearly business," says Jean Denis Voin, executive vice president of CIL U.S. Wines & R etail sales are looking rosy for this holiday season, say many fi nancial experts. A combination of lower gas prices, an improved labor market and rising home values has helped U.S. consumers feel more confi dent about the economy and more willing to open their wallets. Brandy and Cognac brands are ready to entice them with seasonal high-end limited releases and fancy gift packs, sup- ported by holiday-oriented advertising, marketing and in-store displays and POS. This year's Retail Holiday Sales Forecast by Deloitte predicts a 4% in- crease in spending over last year. Also bullish on year's end in the National Retail Federation, which expects sales in November and December (excluding autos, gas and restau- rants) to increase a solid 3.7% to $630.7 billion —signifi cantly higher than the 10-year average of 2.5%. Those forecasts bode well for brandy and Cognac. "His- torically and traditionally, Cognac has been offered as a gift across different cultures," says Benjamin Bourinat, a spokes- person for the Cognac Board. "The uniqueness of Cognac has always made it a luxury item. Brands and retailers can tap into this positioning to continue creating ultra-premium editions and upscale bottlings." The U.S. is the number-one market for the French brandy, with 63 million bottles shipped over 2014-2015. American R DECK THE AISLES Festive brandy and Cognac packaging can boost year-end sales. Brandy/Cognac Brandy/Cognac BY THOMAS HENRY STRENK

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