Torula News September 1998

29/09/98	Protests continue in the Cognac region with blockades tightening around City of Cognac and Jarnac, today. While Paris is silent, viticulteurs are determined to be heard for the nth time. Their determination is admirable but the timing of their protest may not be. All sides of the conflict know that they will be returning to their vineyards early next week to begin harvest. August or beginning of September would have been a better time to protest. Time, then, would have been on their side. MODEF, in a sign of solidarity with other unions, joined the protest with a massive tire burning campaign.
29/09/98	From 31/10 to 11/11, at the Gare Montparnasse in Paris there will be a major promotion of Cognac organized by the "Bouilleurs de Cru" (Distillers). Mr. Pascal Millasseau and his colleagues are to be congratulated. (Charente Libre 29/09/98)
29/09/98	After Danish, Slovak and now BBC television visits to the region, Cognac awareness is building up in Europe. All is needed now is for TF1 or Canal + to visit the region. Consumption of Cognac in France is insignificant! When?
28/09/98	The objective of isolating City of Cognac and obstructing access to 8 other towns in the Cognac region succeeded as of 10:30 this morning. Three key demands of the protesters are: urgent financial assistance in the areas of grape growing and distillation, restructuring of prices and increased promotion budget. Fair demands that have been on the table for some time. However, protesting against Hennessy is ill conceived and against free market economy. A major part of the solution to the Cognac problems lies in the free market economy, lower taxation, increased productivity, improved promotion and advertising, and easier access to investment capital.
28/09/98	Just when Cognac needs lots of positive publicity, R.W. Apple Jr. of the New York Times Service publishes a personal ode to Calvados. He quotes Marcel Proust and A.J. Liebling in support of his preference of Calvados over Cognac. We must, however, agree with his choice of the best makers of Calvados: Roger Groult Company and Adrien Camut. Torula News staff prefers Cognac! (IHT 19-20/09/98)
26/09/98	September 1998 issue of Vinum Magazine has an excellent coverage of Cognac; history, process, current situation and tasting results. Among many cognac producers mentioned and quoted, we noticed A. Hardy, Otard, Delamain, Forgeron, Paul Giraud, Ragnaud-Sabourin, Rémy Martin, Camus. Magazine cover is graced with a photo of Patrick Peyrelongue of Cognac Delamain and this quote: "Der wahre Cognac kennt keine krise" ("This crisis helps to sell quality Cognac"). We hope that Mr. Peyrelongue is right! (Vinum 09/98)
26/09/98	Expect hot Monday in Cognac region when 5-6000 frustrated viticulteurs (some unions already refusing to participate) are to block roads and train tracks leading to the 9 main towns in the region (Burie, Matha, Chaniers, Pons, Archiac, Chateuneuf, Jarnac, Segonzac and Rouillac). It is expected that the main focus of their frustration will be directed at Hennessy for introducing Irish Whisky to the Japanese market under their brand name. It is true that many have suffered some 30-40% drops in their revenues, that they are frustrated by slow responses or lack of action from BNIC and the Ministry of Agriculture but protesting and taking their frustration against a business decision leads to nowhere! Wrong target, wrong reason to protest. (Charente Libre/Torula News)
24/09/98	Amid the Asian crisis, cognac producers are missing one great opportunity - India. This second most populous country in Asia, is booming with some economists and government predicting GDP growth rate at around 6%. Here is a country where production and consumption of brandy is at all time high and yet we are not hearing about any major attempts to sell cognac there. Granted, it is not an easiest country to do business in but it is one where opportunities exist. (The Economist/Torula News)
24/09/98	Last 2 weeks among the big Cognac Houses were very tense. Many have had serious discussions and started to take action to tighten their operations, to cut the costs. Among them, for example, Hennessy, Courvoisier, Otard and Rémy Martin. Saving office space by doubling or tripling number of people in the offices, eliminating duplication in their administrations and offering early retirement packages, eliminating stand alone distribution networks in favor of joint ventures, selling non-strategic assets and so on. But what we have not heard is layoffs (not popular in France but necessary in Cognac industry), cutting and consolidating travel (especially 1st and business class, leave on Monday return on Friday), eliminating Paris offices when a full fledged head offices exist in Cognac and improving product quality. And finally, rather than cutting advertising budgets there is a need to increase them! So, the prospects for improvement are still only 50-50.
23/09/98	While Cognac industry protests (see 19/09/98 story), Armagnac industry takes a positive step in tackling industry problems that are very similar to cognac ones. The initiative that will be voted by the armagnac industry in November calls for, among other things, changing the qualities definition and labeling of Armagnac; Blanche de Armagnac (white Armagnac), young and not aged in the oak casks, Armagnac, aged 2 - 5 years, Vieille Armagnac, aged 5 years or more and Vintage Armagnac aged 10 years plus. Labels will be changed to distance armagnac presentation from cognac and single malt scotch. Transition period will be 3 years from the date of approval. Good move showing the dynamism of the Armagnac industry. (Torula News exclusive)
20/09/98	Highland Distillers and Rémy Cointreau, are consolidating their respective channels of distribution. This means that Highland, with its leading single malt scotch The Macallan, will also sell Rémy Martin Cognac. Rémy distribution network has effectively cease to exist with this arrangement as well as with an earlier pact with Bacardi-Martini to form Triados. In part, it is the fallout from establishment of Diageo but we believe, it is also, one last desperate move by Rémy Cointreau to get a better positioning for its cognac. (FT/Torula News)
19/09/98	Major manifestation by cognac viticulteurs is scheduled for 28/09/98 in Cognac. Five competing unions agree to participate with 5000 out of over 9000 members expected to be present. Purpose is to vent members anger at BNIC. Wrong method, wrong forum and after a status quo BNIC elections in July, a misguided effort.
18/09/98	Michel Bonnin of Logis de la Montagne introduces Angel Night. Perfectly packaged Fine Blonde de Fins Bois (Fine oak-aged Cognac) is 40% vol. cognac from Fins Bois cru, pure and perfect. Shortly coming to this web site. Can be tasted on 7 October at La Ribaudière Restaurant in Bourg Charente at 19:30 during the Cognac Pleasure Tastings Amateur gathering.
17/09/98	Christian Maîtreau, Director of Packaging at UNICOOP, introduced new packaging concept for year 2000. Under the mark of Prince Hubert de Polignac with target markets in Hong Kong, China, Holland, Finland, England and Canada, a distinct carafe and bottles with various 'time' themes in serigraphy should carry the faltering sales of Unicoop to better times. Expect this packaging on the French shelves in mid-October. (Sud-Ouest)
17/09/98	BNIC accepts Ministry of Agriculture 1998-99 proposal; 6 hectoliters of alcohol per one hectare of vineyard plus other details. Much tinkering, lots of meetings but no major decisions to help the industry. For example, free the market, lower taxes on eaux-de-vie, improve product quality etc.! (Sud-Ouest/Torula News)
15/09/98	Bar 1 in Oslo, Norway offers over 100 Cognacs. On the 28/09/98 in Oslo, Bar 1 conducts tasting of A. Hardy Cognacs. All are welcomed!
14/09/98	Jacques Rouvière and his crew at Cognac Bisquit are working hard to re-process and salvage 80+ years old cognac recovered from the Baltic Sea. See previous stories about this cognac salvage operation (03/08/98 etc.).
14/09/98	Cognac Godet and SNCF (Paris-La Rochelle route) and Château de Didonne Equinoxe at the Grand Prix de Royan (sailing) are tiny examples of brave and smart producers, excluding the Grande Marquees, who advertise! Congratulations!
12/09/98	10th Floralies de Cognac, a flower show in the public gardens of the Cognac City Hall, is underway with Rémy Martin and J. Brard-Blanchard stands representing Cognac producers. The new couple, Rémy Cognac and Tonic under the name of REMYX mixing moments, leads the way. Good graphics but an awkward message.
11/09/98	Yet another group of viticulteurs (about 150 strong), Solidarité et Avenir, occupied BNIC offices today, in a friendly manner to protest Hennessy Whisky strategy. A major manifestation is planned for the end of September uniting all of the viticulteurs groups. But, 3 months after BNIC elections, this efforts are a bit too little and too late. Using Hennessy issue is just an excuse for lack of proper effort to change the course of the Cognac industry at the ballot box.
10/09/98	Rémy Martin wins ahead of Hennessy and the 4th place Martell in the annual water jousting competition on the river Charente in Cognac.
08/09/98	Hennessy continues to dominate Cognac news... Will BNIC sue Hennessy over the Hennessy Whisky? In an ongoing row over Hennessy decision to sell Irish whisky produced by Cooley Distillery in Dublin under the name of Hennessy Irish Whisky, BNIC, on behalf of cognac industry may file a lawsuit claiming that Hennessy name is too closely associated with cognac to be used in selling other spirits. In other words, BNIC lawsuit will try to prevent use of name association of Hennessy and whisky. It is rather an intellectual war than a sound business practice. Does BNIC expects Hennessy to use a name like LVMH Irish Whisky? Finally, LVMH is the 6th largest spirits company in the world. Businesses, if successful, must operate in the free market conditions and should take all advantages possible to succeed. How much lost business can other cognac producers expect from this new product? We believe, none! Any cannibalization that will occur will affect Hennessy Cognac. And, Hennessy people are astute businessmen who know that it is worth it. Furthermore, Hennessy is a company name and not an appellation. So, should Rémy Martin be sued for mixing cognac & vodka into a Rémy Platinum product or should L & L be sued for producing XO Beer? Of course, not! Business is business. BNIC money will be better spend on improved marketing and communication campaigns that decisively promotes Cognac. (Charente Libre, Torula News)
08/09/98	Yesterday, Hennessy announced new product, a limited edition in Baccarat carafe, for the Japanese market under the name of Cognac Hennessy First Landing 1868. This product is a blend of eaux-de-vie dating back to 1865. It shows how a dynamic team led by Christophe Navarre, Hennessy President, is responding to the Asian crisis, an in particular, falling cognac sales in Japan. Since June'98, Hennessy has introduced 7 new cognac products (we still question giving "Pure White" name to Cognac targeted at the US market) plus an Irish whisky. Offense is the best defense in any markets. (Sud Ouest, Torula News)
07/09/98	September 98 issue of Capital shows Diageo as the number 1 spirit producing group with LVMH in the 6th place. Bacardi Rum leads Smirnoff Vodka and the Johnnie Walker Red Label in the top 10 spirits brands. No Cognac brand mad it to the top 10. Regretfully in France, there is no cognac among the top 10 brands sold. Pastis Ricard, Martini Vermouth and Pastis 51 are the top 3 brands. More marketing is needed to increase cognac market share in France, which today is at about 3%. (Capital, Torula News)
07/09/98	Led by new products like Hennessy's Pure White (right product, wrong name), Martell's &CO and Rémy Martin's Rémy Platinum, major Cognac producers are trying to stop declining Asian market. New packaging from Courvoisier (Millennium 2000), Martell (Odys), Rémy Martin's (Trek and Sea-Line) and Hennessy (Kenzo) and re-targeting the audience (for example,women), is the answer from the major Cognac houses which represent about 80% of Cognac exports to Asia. With Sean Connery (Courvoisier) leading the new cognac advertising campaigns there is a reason for optimism. But other markets like Americas, Europe (especially Central Europe) and Russia don't stand still and need to be cultivated as well. (Capital, Torula News)
04/09/98	More visitors from more countries are using www.swfrance.com. In the month of August, this site registered another record of over 15,000 visits.
03/09/98	In depth look at the store shelves in the Czech Republic and in the Slovak Republic revealed that Cognac is out numbered by major spirits in a ratio of approximately 1 cognac bottle for 25 whiskies and 15 vodkas. While whiskies are very well represented by a mix of blends and single malts/barrels, Cognac is almost only represented by the blends. In Prague, for example, we found: Rémy Martin, Martell, Hennessy, Courvoisier, Marie Brizard&Roger, Davidoff, Camus, Prunier, Larsen, Meukow and Marnier. Single crus were from Lheraud, Delamain and Hine, only. In Bratislava, Camus, Martell, Hennessy, Bisquit, Manier, Brugereolle, Meukow, Comte Joseph Fine Cognac and Rémy Martin were the only blends on the shelves. Random survey of customers revealed an interest in single crus and in Napoleon quality in both countries. Majority of blends on shelves were of VS and VSOP quality with very few top end qualities. Cognac industry could definitely do better!
01/09/98	Cognac well represented at the Food & Hotel exhibition in Shanghai, China led by a strong delegation of Poitou Charentes politicians and Cognac producers.