The Team Navarre is working very well, although there are some indication that other major wine and spirits companies are ready to poach team's key players. A prize of success! (LVMH press release, Torula News)

We looked at BNIC (The Cognac Association) web site recently which is impressively managed but short on the real industry news, and found a small change in wording. We thought of passing it to all consumers of Cognac.

"A Cognac is identified by its label, with names which are easily recognizable by the consumer,
such as:  - V.S. or *** (three-star) for Cognacs in which the youngest eau-de-vie is under four and a half years old;
- V.S.O.P. (Very Superior Old Pale);
- Reserve, etc, if the youngest Cognac is between four and a half and six and a half years old   - Napoléon, X.O, Hors d'âge... etc, for Cognacs whose youngest Cognac is at least six and a half years old." For more click here http://www.cognac.fr/web_bnic_en/htm/cognac_conso_etiquette.htm

Better later than never but we need to ask: So what has happen to VS or *** with a youngest eaux-de-vie of minimum age of 2.5 years? Will we see a 12 month old VS, 1.5 years old ***? Are we beginning to see arrival of Cognac Blanc - slowly but surely, again?

From Guardian Unlimited on 27/01/01: "It will only be four lines long but Allied Domecq's trading update, due to appear with Monday's AGM statement, caused all sorts of consternation in the market yesterday. The hot rumor was that the update would reveal trading had fallen below market expectations in the first five months of the present fiscal year." We will now today, 29/01/0, at the business day's end if the Courvoisier Hoopla Girls helped or not.

When you turn off the main road in search of the proprietor of this Cognac you will be surprised to find a modern bungalow, double garage etc. Just like in California or Arizona. It is the white wine tanks that tell the story of an eaux-de-vie producer.   Father distilled here and now 2 brothers are doing the same. Their eaux-de-vie goes into Martell and Courvoisier Cognacs. One of them, decided to bottle his product about a year ago. Gerard Delmon’ vineyard lies in a triangle of Fins Bois, Grande Champagne and Borderies. He has 15 hectares of Ugni Blanc and a bit of Colombard classified as Fins Bois. Today, Gerard Delmon sells VS and VSOP. When we visited him one early morning he was busily working on his next quality. As he said: “Somewhere between, Napoléon and XO”. You can email him with a question when it will be ready: gerard.delmon@wanadoo.fr. We definitely will be back to test his older product, as this tiny triangle of crus has in the past produced very interesting eaux-de-vie. He retails his VS at FRF90 and VSOP at FRF120.

Among the 3 Cognac qualities that Torula News tracks retail prices in 8 countries, XO showed most interesting changes. In France, the high end of the range showed significant increase driven no doubt by the big brand products while the low end of the range remain steady. In Germany, only the low end showed gain with the top of the range remaining steady. Sweden showed a surprising drop in the low-end prices while the US showed a solid gain at both ends of the range. For details click here.

Overall, we expect continuing increase in Cognac retail prices at both ends of the range in year 2001. The driving forces behind this trend that begin developing last year are major brands producers. The philosophy is very simple; Cognac is a premium, luxury product. The economy of late 90s and last year performed well and consumers were buying, especially in the USA and Asia. This year, with an expected slowdown in the USA and some hiccups in Asia, it might be Europe with its steady Euro-economy to support this trend. The problem for Europe is that as a bloc, it is not purchasing enough Cognac. Scandinavia alone won’t support it. The challenge for the major Cognac brands is to begin spending extra advertising money in Europe; Germany, Central Europe, Russia and the UK.  And finally, a long awaited improvement in Cognac sales is expected from Latin America putting aside deteriorating economy of Argentina.

Allied Domecq buries Courvoisier Cognac presence on the Internet in Macromedia Flash among many of its corporate pages. Click here for new Courvoisier presence on the Internet.

Following our 8/01/01story on Cognac in the Japanese up market magazine Brutus (No.470), we can now list their top 3 Cognac selections, Brutus Best Bets; Hennessy XO (¥15,000), Courvoisier XO Imperial (¥23, 000) and Martell Cordon Bleu (¥14,100).  In the same issue Cognac Rémy Martin has a 4 page spread titled L’Esprit de Rémy Martin No.6. Click to view page 61.

Vodka business in Poland, manufacturing and local sales, is a mess with Pernod-Ricard (parent-to-be of Martell Cognac) trying to sort things out. Only exports are booming while the local consumption is down by some 67%. This is primarily due to smuggled cheap imitations, high taxes and changing consumer preferences. One of the main beneficiaries is Cognac. The editor of Polish spirits industry trade publication, Krzusztof Kilijanek is quoted as saying: “In a very short time, we have changed the way we drink, we now serve alcohol in mixed drinks.” (IHT15/01/01)

For 9 months of the fiscal year 2000/2001 the Group’s financial results registered a weak 8.9% increase in revenue. Champagne sales are down in double digits and liqueurs are weak. Even the Cognac Rémy Martin which registered 21.7% increase over 9 months when compared to first quarter results, which were up at 32.7%, is showing weakness. The Rémy Red US excitement has not spilled over to other product lines. The transition from Fine Champagne products to Grande Champagne (Louis XIII), Fine Champagne (Extra, XO, VSOP) and Petite Champagne (VS) products is not simple. The consumer might be slow reacting but than when it does, it does so with vengeance. It simply goes and buys other Cognacs.  No wonder that the first opportunity to interview Group’s Chairman is at the end of March, we were told. Better later than never.

Driving past the large equestrian center, we slowly climb uphill in this pleasant village known more for its educational institute than interesting selection of Cognacs. Once you enter Jean Grosperrin house, you immediately realize that besides Cognacs, it is a house of free spirits, artists and personalities.

Jean Grosperrin started his bottling collection in October 1999. He writes: “A broker in eaux-de-vie plays a very discreet yet strategic role, between producer and the buyer, his job is to evaluate the quality of the eaux-de-vie and to introduce interested parties to each other… These family treasures are very rarely found for sale and the transactions are very confidential. It is these Cognacs, very atypical with strong personalities that I seek to obtain in all the delimited growth areas… My philosophy is to keep these batches intact, without blending them with others, in their original barrels, or glass demi-johns for the oldest ones…”

Recently, Torula News had an opportunity to spend a few hours with Jean Grosperrin and did some preliminary tasting of 15 bottled Cognacs in Jean Grosperrin’ La Gabare collection. Among the outstanding Cognacs we tested were: Cognac Petite Champagne 42 ans (1958) at 40.8% vol., 1964 Borderies at 51.6% vol., 1961 Borderies at 53.9% vol. and Grande Champagne (55 ans) at 42.2% vol. Others, like Bons Bois 50 ans (at 48.1% vol.) or Fins Bois 31 ans (1968 at 41.5% vol.) were also very good.

To date, his products are sold in France, Holland and Switzerland; and in shops like Les Caves Taillevent in Paris, Cave 47 in Tours and restaurants like Le Bristol in Paris and Jean Bardet in Tours.

The packaging designed by Linea, is innovative with a very busy product label providing all needed information about the product and its source. Unfortunately, the classy marketing brochure is written in a stilted English but the Cognacs are very good.

For a long time you could buy Cognac on Internet only at specialized sites like www.le-cognac.com or www.calvados.de. Since last few months many wine oriented sites began selling Cognac as well. Strange as it might be as many wine sites either are laying off people or merge or simply go out of business. They might see salvation in Cognac. We looked at www.chateauonline.com , for example. In French language version we could order A de Fussigny, Frapin, Hennessy and Delamain products. In English or in German we could only order Vigna Abla Apiatae Moscato 1993. Oops, it is not a Cognac but that is what chateauonline.com offers in English and German. www.wineandco.com offers 1 Cognac only, Cohiba Extra from Ricard on their French language site. Well, at least technically it comes from Bisquit that is own by Pernod-Ricard. On their English site, Cognac is not available. There are many others who sell wines, spirits, chocolatesand cigars including subscriptions to various related magazines like www.bacchuscellars.com, a supermarket of related items. Then there is, of course, a question of prices. For example: A de Fussigny Ebony Blend is available on the Internet at US$54 or US$73, FRF590 or FRF595, Delamain Vesper can be purchased at FRF630, US$90 or DEM166, their Pale&Dry XO is available for FRF430, DEM116, US$67. No matter which conversion rate you use, including Euro (€) the prices differ. Just like a shop, you say. Yes, except with present Internet technology you can employ a robot to find least or most (if you choose so) expensive product.

And there are personality sites, which sell Cognac. The latest to offer Cognac is Alain Ducasse’ www.ducasseonline.com that carries 4 A de Fussigny products.

Cognac sells on Internet (see www.le-cognac.com or www.calvados.de) in limited quantities and only when a site invests time, effort and information to explain the product. Another key to repeat sales is customer service, a function practically unknown among Cognac producers. Cognac especially bottled for Internet sales do usually a brisk business. Of course, when the product is rare or in a very limited quantity it is easier to attract collectors and connoisseurs. Within EU it is easier to sell it than, for example in the USA, across the states. For the moment, the volume of Cognac sold on Internet does not threaten major distributors or importers but when that time comes (i.e. year 2003 in Europe, parts of Asia) major Cognac producers would have to be present on Internet with their e-commerce sites to accept orders and send them to appropriate importer/distributor for fulfillment. At that particular moment, Internet may provide salvation to small producers still working without importers.

Following a tough selection from among 80 applicants, Ms. Claire Floch was appointed a Director of the Association effective 2/01/01. Her appointment completes new management team led by Bernard Lacroux, the Association’ President. After the dynamic period of Baudry/Thomas at the Association, we expected, at least continuation. But the new regime has re-focused Association’s priority to legal and tax issues and defending the appellation. The current advertising/promotion campaign is up for a review with new bids to be decided on 6 February. The advertising budget has been cut to FRF6.5 million. The USA and the UK markets will be ignored as the Association continues to suffer from past mistakes even though the US spirits market is the largest in the world. The Association will concentrate its promotions on the French, Quebec, Belgian and Danish markets. This amounts to a major retreat from a hard nosed marketing orientation of Baudry/Thomas to a defensive and bureaucratic stance of the present regime. Thus the future growth of Pineau des Charentes will be in the hands of producers and will continue to be a small niche product limited primarily to French speaking enclaves around the world with annual sales hovering in the 15-16 million bottles.

While some Cognac producers use the expression L’Esprit on their top of the range products (i.e. Courvoisier, Ragnaud-Sabourin), it is worth noting that L’Esprit de Cognac is an eaux-de-vie from a 3rd distillation (30 – 34 hours continuous distillation). This by-product, (at about 80% alc. vol.), is used in the Champagne region to accelerate its aging at about 3 cl per 100 bottles of champagne. During the past 2 years Cognac region has seen increase demand for the L’Esprit de Cognac but at FRF45 per liter it reminds a very small business.

Following on our item dated 12/01/01 on VS retail prices,we have now published a 4-year, 4-country high-low VSOP retail prices as collected by Torula News correspondents.

Sweden where the prices are controlled by the government monopoly shows steadiest increase in the VSOP prices with a small narrowing of high-low range in the year 2000. VSOP prices in France and Germany show similarity and the rise in the past 2 years. US VSOP prices show steady progression upwards after a strange pricing anomaly in 1998. Interesting point to note is an increase of prices at the low end of the range but slight decrease at the top end. This might signal a sharper price differentiation between VS, VSOP and XO. Our XO prices will be published next week. For details click here.

For the past 4 years Torula News correspondents have tracked quarterly retail prices of Cognac for VS, VSOP and XO qualities in France, Germany, Sweden, USA, Canada, Japan and the UK. Our sources were supermarkets, retail stores and e-commerce Internet sites. We used products in 70 or 75 cl bottles as applicable by country, which had clearly labeled quality name of their products excluding special packaging like wooden boxes, carafes or glasses.

VS retail price range in France showed a small decline in 2000 probably due to a lower than expected sales (by some 13-15%). In Germany, Sweden and the USA VS retail price range showed a steady increase. Within the country, most notable price range was in the US where the spread between high-low prices increased. For details click here.

Wine Internet sites around the world begin slowly to introduce Cognac to its e-commerce. Among recent additions are www.channelwine.com which offers Léopold Gourmel, AE Dor, Rémy Martin VSOP,   www.wineandco.com offers Bisquit Cohiba Extra and www.letono.com with H. Mounier and Ragnaud-Sabourin among others though not a single info link worked. A natural expansion as Cognac is a by-product of wine!

After a major marketing effort by Hennessy, Rémy Martin, Courvoisier and Martell in the spring and summer of 2000, Japan is slowly returning to Cognac. WANDS, The International Wines and Spirits Magazine for the Trade in Japan in its December issue carried several ads for Cognac (Hennessy Classique and Fine Champagne VSOP, Manier Fine Champagne VSOP and XO Grande Fine Champagne, Camus Finesse, Courvoisier Rouge VSOP, Rémy Martin Petite Louis XIII and VSOP, Martell Cordon Bleu (but why full, uncorked bottle in the ad?) and Jean Fillioux Cep d’Or build around an extensive article. This would signal slow but steady recovery of the Cognac market in Japan. A job well done!

Our Japanese correspondent writes: “A popular magazine published monthly, named BRUTUS that targets fashionable men readers in the twenty to thirtysomething age bracket had a 10 pages spread on Cognac in its January issue vol.22 no.1. The article covered general introduction to Cognac and had ads from Rémy Martin, Hennessy, Martell and Courvoisier. It appears that the Cognac trend is coming back or at least is the sign of the beginning. The homepage of that magazine is http://www.brutusonline.com, email address is brutus-info@magazine.co.jp

A father and son business in Fins Bois cultivating 48 hectares in the tiny village of Villars. Early this year they started bottling small quantities of their eaux-de-vie. With 4 Cognacs in their line, VS, VSOP, Napoleon and XO, and all scoring 18 to 20 points in our preliminary tasting, here is a small bottling producer worth watching.

There is Dominique Bouchet at Hotel Crillon, there is Gerard Allemandou at La Cagouille and there might be Bernard Locussol at Tour d'Argent and there are other chefs and personalities from the Cognac region making their name in Paris. But for sheer fun, enjoyment and Grandma's cooking, Jean Marie Tessier (originally form around Saintes) at the Le cochon à l’oreille wins our hearts, stomachs and the pocket. Click here for address.

Jay Amberg, (our old friend from the oil industry) of Bloomberg Lifestyles writes from Cuba: “The prestigious French Cognac Rémy Martin and the citrus- based liqueur Cointreau have entered Cuba's growing market for spirits and alcohol-based beverages, according to Granma, Cuba's state newspaper. ``Given the rapid expansion of the Cuban economy, why not be in Cuba?'' Jean-Myrtil Laurent, a representative of the Rémy Martin-Cointreau group told the newspaper. ``For us, the Cuban market in the Caribbean is very important, due to the growth in tourism.'' (Bloomberg 28/12/00) For more click here

http://quote.bloomberg.com/fgcgi.cgi?T=finer99_wine.ht&s=AOksySBUSQ2lnYXJz

Spread over 4 weekends in December, Pascal Millassau and his Bouilleurs du Cru did their best; distilleries were spick’n’span, literature was given including Mr. Hitier silly idea of a Cognac region map (incomplete and incomprehensible) and very somber postcards. But the visitors were greeted with friendly smiles and lots of effort to explain all they know about Cognac. And yet, the number of visitors was visibly down this year. We suggest 3 reasons: overall consumption of Cognac in France is down for the year by about 15%, spreading Portes Ouvertes over a whole month with alternating distilleries being open was a good idea it just simply did not work. Finally, the most important reason; visitors come to learn, to taste and to buy. At most of the participating Bouilleurs du Cru you could not buy anything nor could you taste anything but BNIC’ CognacTonic, a very tired and boring drink. Until this is remedied, this great idea will slide into oblivion. What a pity!

To paraphrase a famous California quote: "Wine's for drinkin' and appellations are for fightin' over." For more click here

http://www.hotel-online.com/Neo/News/2000_Dec_22/k.MOW.977939611.html Much of it applies to Cognac region as well.

Courtesy of Carole Frugier of the H. Mounier' Marketing Department we were made aware of a September 2000 blind tasting in Norway organized by the magazine Apéritif with 70,000 circulation. The tasters comprised of Remi Madsen of Hotel Intercontinetal, Christer Öqvist of Holmenkollen Park Hotel and Knut Aanonsen of Halvstarnd Bad. They have tasted 22 VSOP Cognacs and 2 Special VSOP. There were 2 winners; Prince Hubert de Polignac VSOP ("the cheapest Cognac with highest score, which with its well-stored blend of up to 30 years old Cognacs carried the panel off their feet") and Ragnaud-Sabourin Alliance No. 10 VSOP ("the most expensive Cognac with highest score"). Next was Hine Rare & Delicate, then came Larsen, Ferrand, Chatelier, Voyer and Hennessy. In the next group were Tiffon Bonaprte, Gautier, Martell, Courvoisier, Remy Martin and Paul Giraud. Hardy, Toyer, Dupont and Otard were in the next to last group with Meukow, Chateau Montifaud and Leopold Gourmel holding the rear. In the special category Renault Carte Noire Extra came ahead of Hine Cigar Reserve. Well done to the tasters, winners and the others.

Alain Serge Delaitte, Communication Director at Pernod-Ricard told Sud-Ouest Charente, a regional newspaper on 27 December 2000: “Cognac Martell has a good potential and fits well with our other high quality, whisky market leader acquisition, Chivas Regal. In addition, it is complementary to our catalogue of Cognacs. Bisquit is well placed in France, Renault has nice market niche in Northern Europe and Martell in Great Britain and South East Asia. The grouping of 3 brands makes Pernod-Ricard Cognacs no.2 behind Hennessy.”

Until purchasing Martell, Bisquit-Renault was being downsized and practically ignored by Pernod-Ricard. In a similar fashion like their Coca Cola license, which they returned a few years back, like Orangina that keeps loosing market share year after year. Sales of Cognac Bisquit in France are down this year and Renault is not a leader in a single category, in a single market in Northern Europe. As for Martell it needs management, it needs vision, it needs strategy, it needs investment. All of those things that Pernod-Ricard has yet to demonstrate in its past involvement with Cognac. And, not to be forgotten, it needs corporate patience. Finally, let’s face it, it is the USA market that will make or break Martell in the next 3-5 years. The Pernod-Ricard spokesman did not mentioned this market.

Martell’s Cordon Bleu has been a favorite of our editor for the past 28 years, and this year’s Reserve de la Borderies scored high at our tastings in Paris. There is a strong base and lots of history to do well. Supported by the ambitious I am Martell/Meet Martell ad campaign, Martell has a chance. Does Pernod-Ricard have will power and deep enough pockets to do it? Finally, it is all about being No.1! (Sud-Ouest27/12/00,Torula News)

In the year past, we have reached a couple of milestones.

As of 30/12/00, our independent site visitor tracking service recorded 458,507 annual visitors with December 2000 setting a record of 54,103 visitors at our web site; www.cognacnet.com & www.swfrance.com . Thank you.

Rixendis' Cognac tastings had a great year culminating with an excellent tasting at the Hennessy. In the process, we have discovered several small but excellent producers with outstanding products like Lefaulon VSOP, Pierre Serplet Hors d'Age. Our editor have personally tasted and re-tasted over 185 Cognacs. Together with other volunteers and amatuers, we now have tasting results for over 350 Cognacs. Best to our knowledge, no publication in print or in cyber-space comes even close to it!

We have set out an ambitious program for year 2001. First, we keep upgrading our site and continue to adhere to a our principal; "It is about content not slickness, stupid!". We have made a few improvements with more still to come; month todate Torula News print option is now available, individual Torula News items are now displayed in a pop-up window, home page is less cluttered (we hope) and we keep working on improving our site navigation. We plan to update our Cognac guide and make it available on the site as an e-book for a fee (whole book or individual chapter). In mid-January, we will introduce Tulip-to-Tulip monthly Cognac tasting where our editor will taste one-on-one with invited guest tasters. It is not an original idea, we borrowed it from the Scotch Magazine resident tasters; Micheal and Jim. Having recognized our visitor traffic volume, we will begin selling advertising on our site in 1Q01. We will offer an advertiser a targeted audience of over 450,000 consumers interested in Cognac. Not bad! This would make our site more like a business than amateur-hobby effort of the past 5 years. After a significant uproar in our newsroom, our editor was out voted. Vote was fair with no pregnant or hanging chads.There was no need for a recount! And finally, the Torula Newsletter is scheduled for a debut in February 2001. In the meantime, form all of us at Torula News, www.cognacnet.com & www.swfrance.com , we wish you a Prosperous and Healthy New Year.

28 January 2001