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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Martell has focused on the mar- ques above VSOP in the U.S., like this XO. split about 70% coming from Cognac and 30% domestic brandy seg- ment and are definitely brand loyal – the Hennessy consumer does not seem to be interested in changing brands, for instance." He notes Hennessy VS maintains its status as leader of the pack. "Where Hennessy VS goes, so does the Cognac segment." And he points out that while offering new expressions to customers is important to the BevMo! philosophy, customers are so loyal to their brands it's tough to get them to switch. Trading Up Success Black, says Rodney Williams, senior vice president of Hennessy at Moet Hennessy USA. Keeping current with newer consumers is required, Williams notes, and says Hennessy Black's trade-up opportunity and smoother flavor profile is still build- ing awareness. "Consumers consis- H ennessy's success has been bolstered by the modest advances of Hennessy Camus recently introduced three expressions with a mar- itime connection, collectively called Ile de Ré after the island off the west coast of France where the grapes are grown. tently tell us they find it light and smooth in flavor pro- file and finish and they love the packaging. For a brand that's been around 247 years, it will take a little while for everyone to recognize the Hennessy Black proposi- tion." "We're very excited that Cognac is growing and we see many opportunities on the horizon as consumers appreciate the fact that Cognac can be enjoyed neat or in a mixed drink, and we're increasingly engaging new and younger consumers to experience Hennessy in a mixed drink," Williams says. This year the brand launched one of their biggest advertising and marketing campaigns around Hennessy VS, trying to connect with younger consumers, based on the notion of pushing the limits of one's potential "which we feel resonates pretty powerfully with some of the challenges young adults face today," he says. Called "Never stop, never settle" the campaign employs ads with boxer Manny Pacquiao, director Martin Scorsese StateWays s www.stateways.com s November/December 2012 and singer Erykah Badu. Cognac has long been tied to nightclubs, African- Americans, Asians and the luxury markets, and the slowly improving economy bodes well for the category in the near term, says Emma Medina, Rémy Martin senior brand director. "The trend is certainly returning towards quality and luxury goods. While the cognac category remains flat, super premium cognacs are reporting double digit growth and we continue to see increased demand for luxury spirits." Searching for Higher Marques A s BevMo!'s Carmon points out, Remy VSOP drives that tier of the Cognac trade, but that lately, the increased interest in the higher mar- ques has created challenges for retailers – suppliers simply don't have enough. Martell has focused on the mar- ques above VSOP in the U.S. and Iglesias agrees success has created issues. "When you are focusing on a higher marque, the planning is more complex. We depend on the Borderies region for Martell, which is very small and can only produce a limited amount of and we basically make all we can get our hands on." Even new brand D'Usse is being careful to make sure they can supply their customers. The brand's initial offering, a VSOP only now available in New York, with perhaps two more major Cognac mar- kets to come by year's end, was designed to be spicier and woodier than other expressions coming from the Otard house, according to Giles Woodyer, brand managing director of D'Usse. The slow roll-out in the U.S. is caused by a need to manage their supplies carefully to make sure demand here is met first. While the Cognac drinker is difficult to switch to other brands, the brandy fan is more suscep- Earlier this year Bacardi launched D'usse V.S.O.P. Cognac, from the famed Chateau de Cognac, in limited markets and intends to expand distribution. 21