Cognac Regains Lost Ground, As U.S. And Asia Show Growth
October 19, 2012After struggling against the onset of the global economic downturn in 2008 and 2009, Cognac has come roaring back. Following a 7% rise in 2010, global Cognac shipments expanded by 6% in 2011 to reach 13.8 million cases—some 1.5 million cases above the category’s previous high in 2007.
While Cognac players lately have focused on the top Asian markets, the U.S. remains the world’s top Cognac market by shipment volume at 3.8 million cases, up 4% and nearly 1.7 million cases ahead of second-ranked Singapore’s 2.1 million cases. (Much of that Singapore volume is re-exported to China.)
Hennessy, the global Cognac leader with a category share of around 40%, still reigns supreme in the U.S. Although the brand grew by less than 1% in the U.S. in 2011, its U.S. volume is almost four times as large as the number-two Rémy Martin. While the focus in Asia is on higher-end marques, Cognac consumption in the U.S. increasingly has been driven by cocktail mixability and new products.
“The U.S. remains a crucial market for Cognac,” notes Rodney Williams, senior vice president at Moët Hennessy USA. “As young consumers increasingly embrace the notion that Hennessy can be enjoyed not just straight but as a part of a refreshing mixed drink, we expect its popularity to continue to grow.”
Hennessy recently released the second installment of its Hennessy VS Limited Edition series, an initiative that debuted in September 2011 with a special label design created by New York-based artist KAWS. This year, the limited edition bottling, which debuted in August, features a label designed by legendary graffiti artist Futura and retails for $32 a 750-ml. bottle.
Courvoisier, the number-three Cognac in the U.S., experienced double-digit growth in 2011, fueled by line extensions to the brand. Similarly, for the six months through June marking Beam’s fiscal first half, Courvoisier reported North American net sales growth of 21%. According to Michael Cockram, senior global marketing director at Beam Inc., the company’s main focus has been on the U.S. market, where the Courvoisier line has been extended over the last 18 months with three new product introductions targeting both male and female Cognac drinkers.
“More females have been consuming Cognac in the U.S.,” says Cockram. Beam has tapped into that trend with Courvoisier Rosé. Introduced in June 2011, the new product is a mix of Cognac and red wine, and has a lower abv (18% vs. 40% for its parent brand) and a lighter style, meant to attract female Cognac drinkers. Courvoisier Gold, launched in September of this year, marks the company’s second foray into mixed Cognacs. Retailing for $24.99 a 750-ml. bottle, the new line extension is a mix of Moscato wine with Cognac and, like Courvoisier Rosé, also with an abv of 18%. Beam has also launched C by Courvoisier, a small-batch, double barrel-aged expression targeted primarily toward male consumers. Debuting in February 2012, C by Courvoisier is 40% abv and retails for $35 a 750-ml. bottle.
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Tagged : Cognac, Courvoisier, Hennessy, Remy Martin, spirits
