Impact Databank: Cognac To Crest 4 Million Cases In The U.S. This Year For First TimeOctober 26, 2015
In recent years, the Cognac category has seen a gradual rebound from the economic downturn of 2008-2009, but lately its progress has accelerated markedly. Last year, Cognac volumes in the U.S. grew 7.7% to just under 4 million nine-liter case depletions. Shipments from France to the U.S., Cognac’s leading global market with 36% volume share, also reached an all-time high in 2014, hitting 4.5 million cases on a 13.4% advance. Impact Databank projects that Cognac depletions in the U.S. will increase 9% in 2015 to more than 4.3 million cases, marking the first time the category will be over 4 million cases.
Five of the top seven Cognac brands in the U.S. exhibited significant depletions growth last year. Category leader Hennessy, with a 64% share, shot ahead 9% to more than 2.5 million cases. Meanwhile, fifth-ranked Martell advanced by double-digits in the U.S., and Bacardi USA’s newer Cognac brand, d’Ussé, was also a standout performer. d’Usse more than tripled in volume last year, following its debut of an XO expression ($230), which joined its original VSOP entry ($45) introduced in mid-2012.
Second-ranked Rémy Martin and third-ranked Courvoisier also showed positive growth for the year, while Salignac—a lower-priced entry-level offering—declined following years of upward progress.
Cognac’s pace appears to have picked up so far in 2015. In the 52 weeks through August the category was up 18.5% in volume in Nielsen channels. Growth was even more impressive in control states, as NABCA reported a 71% rise for Cognac over the same period, with Hennessy VS driving the surge.
|U.S. – Top Six Cognac Brands
(thousands of nine-liter cases)
|Hennessy||Moet-Hennessy USA (LVMH)||2,155||2,230||2,330||2,540||9.0%|
|Remy Martin||Remy-Cointreau USA||595||670||621||648||4.4%|
|Courvoisier||Beam Suntory Inc||420||415||410||420||2.4%|
|Salignac||Beam Suntory Inc||87||90||104||98||-5.7%|
|Martell||Pernod Ricard USA||75||67||65||77||18.5%|
|d’Usse||Bacardi USA, Inc.||–||3||18||55||+|
|* based on unrounded dataSource: IMPACT DATABANK|
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.