Torula News & Headlines September 1999

28/09/99	Headline from Drink International / Drinks Asia, September 1999 issue: "Whisky leapfrogs Cognac and wine gazumps both" in reference to the Taiwanese market. It is an analysis that not everyone in the Cognac industry agrees with.The same publication summarized the situation in Hong Kong as follows: "Cognac: the facts - Singular failure to attract the young, still the staple spirit but in decline and well before the Asian economic crisis, still preferred gift, but only just, and there are traditional weddings but much reduced presence, super premiums had 15% of the action now down to 12%, Hennessy leading XO and VSOP followed by Rémy Martin.". In the meantime, the Cognac industry continues to be preoccupied with a promotional campaign in the Charentes region, the home of Cognac. Time to change tactics, if it is not too late already!
28/09/99	Judging from the initial response of the Cognac industry, LE PRIX DESIGN Y2K (AN 2000) DU COGNAC competition is now fully underway with many entries being submitted already. For details click here.
28/09/99	The owners of the Maison Blanche in Cognac, a progressive discotheque, have decided to sell. One of the oldest Cognac shops in Cognac is also quietly shopping for a buyer. Owners of the Maison Blanche cite ever increasing prices demanded by the suppliers of Cognac. Torula News noted unrealistic price demands during Blues Passions Festival in Cognac during this summer (F15 to F18 per Cognac tonic up from F10 previous year). Driving prices up without proper marketing, without a global plan (see Lionel Jospin comments in our item of 27/09) and without strict adherence to quality will not help the Cognac industry.
28/09/99	Château Palmer in Medoc is gaining an experienced Cognac hand effective 1October, 1999. Mr. Bernard de Laage de Meux, present Director General of Cognac Gautier is taking a senior post at the Château Palmer. Cognac region is loosing an experienced professional to the Bordeaux wines business. We wish him success.
27/09/99	Jeremy Oaks from Martell in Cognac launched Martell L'Or, Jean Babtiste from Château de Cognac launched Otard 1795 Extra, Leopold Gourmel, Larsen and others have done the same in the Bar 1 in Oslo that has become a Cognac Mecca in Europe. And all of those activities were just in the month of September. But now, a story out of Norway is that a similar Cognac establishment is to open doors in Trondheim, in mid-October. André, owner of Bar 1, and his team is unbeatable when it comes to knowledge, service and interest in Cognac.(JAB 23/09/99, Torula News)
27/09/99	During recent visit to New York, Prime Minister Lionel Jospin of France was quoted as saying: "We do not resist globalization, we want to civilize globalization where we can, to harmonize it with our way of life. We don't want to be passive. We are open, but we are not masochistic." Great words that ought to be adopted by the Cognac industry. At the same time, Nicolas Negroponte, founder of MIT Media Lab is quoted as saying: "I watch young people start companies in France, in Italy and in Germany, and it's hell. It takes them 10 times the amount of energy to go through the bureaucratic nonsense to start a company, where kids who graduate from the Media Lab (in the USA) can almost do it in 24 hours." (IHT23/09/99, Torula News)
25/09/99	Cognac Tasting Society salutes beginning of the harvest in the Cognac region with a tasting and dinner in the chais of Cognac Gautier in Aigre on Monday, 27 September.. Tasting begins at 19:30 with dinner served at 20:30.
25/09/99	Luxuria, new magazine for luxury products has hit the newsstands in Quebec, Canada with a stunning new issue. It promises to have an in-depth story on Cognac in its next issue. www.luxuriamag.com
23/09/99	With less than 100 days to go before year and millennium end, Torula News is pleased to announce LE PRIX DESIGN Y2K (AN 2000) DU COGNAC competition to select the best designed bottle for year 2000. The results of the competition will be announced in the first week of November in Paris. Major co-sponsors of this award are Hotel Crillon, Paris, Societe Industrielle de Gravure, Bordeaux, La Cagouille, Paris, BNIC, Cognac and Torula News. For details click here.
23/09/99	de cognatheek® opened its doors in the first week of July'99. It is located in the center of the Old Town in Antwerp, Belgium. Ivo & Johan Kerstens, a father and son, are owners who have put together an impressive collection of 100+ Cognacs and 50+ Pineaux. They cover all 5 crus, their oldest Cognac is in the 80s and their selection of producers represents small, high quality craftsmen for Charentes. It is a large store, well lighted where you can taste Pineaux before buying it. Each month their shopping window features different cru. Among the producers whose products are sold there are Paul Giraud, Christian Landreau, Daniel Bouju, J-N Collin, Bernard Boutinet, Paul Bossuet, Drouet, Thorin and others. The list bears a striking resemblance to the membership of Cave Particulieres. They are opened Tuesday through Saturday 11:00 - 19:00 and Sundays from 13:00 to 18:00. Based on the first 2.5 months of business, the father & son team is satisfied and feel that all Cognac&Pineaux roads in Belgium and Holland lead to their de cognatheek®. Photo of the front.
21/09/99	LVMH, a parent of Cognac Hennessy, reported a 59% profit increase in the first 6-month of the year 1999. The weakest performance in the group was Cognac and spirits where the operating profit dropped 3% (from Euro99 million to Euro96 million). The group's profitability were primarily driven by the recovery of the Asian markets. (IHT18-19/09/99)
21/09/99	At the presentation of the Trophy Pineau des Charentes in Brussels recently, a creation of the Club Pineau des Charentes was announced - www.pineau-club.com (Sud-Ouest 21/09/99)
21/09/99	Guided Tours to Cognac and the region were announced today by the Lusina ISG, Inc.
20/09/99	On the final day of horse trotting, flatracing and steeplechasing at the Hippodrome of Jarnac even the rainy and cloudy weather did not diminish the enthusiasm of the horses, racers and the bettors. All had good fun, some won more than others and Jacky Navarre, President and his organizing committee of the Horse Racing Association of the Cognac Region did a splendid job. All visitors and the bettors enjoyed the fun but missed good Cognacs between the races.
19/09/99	After 70 years, UNICOOP declares bankruptcy affecting some 500 viticulteurs in the Cognac region. Its subsidiary, H. Mounier (owner of Prince Hubert de Polignac, Furio brands and others) stays the course, for the moment. This is a direct result of inaction on the part of the industry and the government. UNICOOP has been in a bad health for sometime. In an item on 2/09, Torula News called for selling, auctioning and merging many of the Cognac companies, among them UNICOOP. It took only a couple of weeks after French banking mergers to feel the tremors in the Cognac industry. 2 out of 3 banks who were the star players in the recent banking merger saga (BNP and Societe General) are the banks that precipitated the long overdue UNICOOP bankruptcy. With 2 weeks before grapes harvest, their timing could not be worst but that also signals the Cognac industry that the time has come to join the real world of business. Although H.Mounier has made some progress recently, their position is by no means safe. They would be smart to look for a buyout or a merger partner quickly. (SudOuest18/09/99, Charente Libre 18/09/99, Torula News)
19/09/99	The recent news of www.virtualvineyards.com buying www.wine.com may signal beginning of consolidation among wine and spirits web sites around the world and especially in France. There are already too many wine web sites looking the same, selling the same and offering the same poor e-commerce design. After 6 hours of web surfing on the subject of wine, Torula News found www.chateaunet.fr as being one of the best wine web sites. (IHT15/09/99,Torula News)
18/09/99	Restaurant Cargo in Saintes opens its door with breezy interior, Marie Claire Pajeile paintings and Parisian prices for its all year around seafood menu. A breeze of fresh, sea air on the local restaurant scene.
17/09/99	MODEF (a militant union of agriculturers and viticulturers) switching its focus from grapes to meat has blocked the entrance to McDonald's in Saintes with cows and hoisting 5 large banners protesting GM meats at 11:05 on Friday. By 11:27 cows and MODEF members (approximately 20-25) have destroyed lawns, blocked the business at McDo (yes, McDo buys meat from French farmers) and accomplished very little. The onlookers and passerby's were either amused, irritated or expressed sympathies with the cows. We have not seen anyone from the Animal Protection Society there and the cows were definitely in need of protection. Again, wrong target and wrong object. And what has happened to a simple premise of democracy - the right to choose? Why, for example, Japan can calmly let the consumer make a choice re:GM foods? Bowing to the Franch farmers whose inefficiency and government subsidies make them non-competitive needs to stop. It is enough to look at the state of the Cognac industry. Words and gestures of Chirac and Jospin in the last few days will not help as they will not make French farmers any more competitive or more efficient. The WTO meeeting in Seattle should be interesting and we hope that French farmers will go there and listen carefully. Your reporter finished an EggMcMuffin, talked to the striking members and the cows.
17/09/99	Our Cognac, an independent guide to the people, the product and the region is now available in Germany - http://www.calvados.de/sortiment/buch.html Reviewer in Germany wrote: "Wenn Sie jemals vor Ort Cognac kaufen oder probieren wollen, dann sollten Sie dieses Buch mit auf die Reise nehmen!"
16/09/99	Bordeaux courts have accepted the appeal in the disposition of Cognac Hardy. Next judgment is expected on 25 October 1999 with final formalities to take place sometimes in November. Torula News called Mme Bergess of Jean-Claude Boisset Company in Nuit-Saint-Georges, an original winner in the protracted sweepstakes for Cognac Hardy for comments. We quote: "Boisset personnel worked at Hardy until yesterday based on a provisional acceptance of the Tribunal du Commerce in Cognac decision. A review of that decision was demanded and due to holidays it was delayed until yesterday. We are very interested in the company and await the 25 October decision. This process is rather unusual, it might be the 1st in France but we are not sure of it". The waters of river Charente are still muddied up as this saga continues. To recap: mysteriously or not, the Tribunal of Commerce in Cognac awarded Cognac Hardy to a second highest bidder, Jean-Claude Boisset Company of Nuit-Saint-Georges in early July. Highest bidder was a KCP (Klesch Company Partners) group bidding nearly F1.6 million higher. What happened after is a series of not so professional events leading to yesterday's decision. If you ask why KCP was not awarded the company in the first place, the answer is a bit difficult to get. Was it because an American is a partner in the KCP? Was it because local Cognac interests have prevailed upon the Tribunal or was that the owners of Viticole Reunis want to keep behind the scenes control of Hardy? The small world of Cognac needs to heed the recent lessons from a failed merger of BNP-Paribas-SocGen where the institutional shareholders stood up successfully to the French government plans to force a merger and follow the example of TotalFina takeover of Elf, where the French government stood on the sidelines. It is always difficult to reject highest bidder and in the case of Cognac Hardy neither national security nor national pride is at stake. Let the best, the highest and the richest bidder win! Will the courts ask for re-bid? If they will, it will put Boisset in unfair advantage as they already had a good look at the Hardy operation. The answer is expected 25 October. See previous Torula News related coverage: 07/09, 02/09, 22/08, 27/07, 9/07, 01/07, 29/05, 04/99, 30/01.
16/09/99	"Take a french fry, Bill," shouted Gloria Hennessy - read the caption under the photo of Bill Bradley in the International Herald Tribune of 7 September. Bill Bradley campaigns for a Democratic Party nomination in a Presidential race in the USA. A reader from Sweden alerted us to it and wanted to know if this is a "formal" endorsement. We leave this to our readers imagination.
15/09/99	Cave du Liboreau of Siecq appoints François Génin to replace its long serving director Claude Rondet who is due to retire in the next 6 months. Years of wine, Pineau and Cognac experience of Claude Rondet is being replaced with solid and in-depth knowledge of Bordeaux wines and business that François Génin brings to the Cave.
15/09/99	Cognac Café stays open while the negotiations with the bank continue. We are on the Cognac Café side as the City of Cognac needs such establishments. Watch this space for more.
14/09/99	Clarification: In our recent items we frequently referred to the harvest that is to start late September, early October in the Cognac region. This, of course, refers to the Ugni Blanc grapes which are the prime grapes used in the production of Cognac. Colombard, Cabernet Sauvignon and other grapes have been harvested in the region for the past 8-10 days. We apologize for any confusion.
14/09/99	Domaine de Pimbert is located in the center of the Petite Champagne cru where since 1837 the family de Larquier has been planting, harvesting and distilling Cognacs, Pineaux and Vin de Pays Charentais. The Domaine dates back to XVth century and among many famous personalities who stayed there was Madame de Maintenon (a Très Vieux Pineau is named after her) of the Louis XIV court. They work 32 hectares and annually bottle about 55000 of which only 3500 are Cognacs.The family named their product lines La Fine Goule which means gourmet in local expression. Among their outstanding products are Très Vieux Pineau and Chardonnay white wine. For Cognac tasting results click here. Jean-Bernard de Larquier is the Grand Chancellor of La Confrerie du Franc-Pineau, a brotherhood of Pineaux producers.
14/09/99	Miss Carole Jeoffret is a winner of the Miss 2000 Pays du Cognac. She is 19 years old, 1.80 m tall and 93-62-89 in metric measurements. She is a student but can she speak a foreign language, does she know Cognac, Pineau des Charentes or Vins de Pays Charentais?. Torula News was unable to find this out.
13/09/99	Our intrepid reporter tries grape harvesting in Montmartre, Paris as a preparation for harvest in the Cognac region which is due to start late September but most likely around 6 October. We are glad they do not double distill in Montmartre - click here for Peter J. Havas' news story.
13/09/99	Tasting results of Cognacs Louis Royer and Michel Forgeron are now available on this web site.
12/09/99	5 crus, 5 distilleries, 5 different Cognacs - in 1853 Louis Royer, who founded his own Cognac House had probably this idea. About a year ago, the company bearing his name but owned by Suntory of Japan has delivered on this idea with a Distilleries Collection of eaux-de-vie (all at 40% vol.) that are surprising in quality and the range. Cognac Louis Royer, with its bee sign, is primarily an eaux-de-vie bulk seller. What they bottle is acceptable with XO being interesting. The Distilleries Collection and the 23 years old fabulous Grande Champagne Single Bottling Cask puts them among major quality players. In addition to La Belle Cream and La Belle Orange, Cognac based liquors, the company is working on new products to expand their bottling range.The F300 million turnover company is located in Jarnac at the river Charente. A stretch of about 1 km is taken by the companies warehouses and offices. In the middle of it is the home of André Royer, who is retired but still visits offices and chais on a regular basis. There is only one Royer in the company today - Jerome Royer who looks after company relationships with viticulteurs. Judging by what we tasted recently, the company is in good hands with Laurent Robin, their Cellar Master. On the scale of 10, we recorded the following results: Distillerie Chantal Bons Bois 9/10, Distillerie d'Aumagne Fins Bois 6/10, Distillerie des Saules Borderies 7/10, Distillerie de L'Ecole Petite Champagne 6/10, Distillerie les Magnolias Grande Champagne 9/10. The 23 years old Single Cask Grande Champagne Cognac scored 10 out of 10 and the Louis Royer XO recorded 7.5/10. For more tasting details click here.The Louis Royer Single Distilleries Cognacs are sold around the world. In France, they are available at F140 to F350 price range. Since 1958 the company produces eaux-de-vie based food additives for cooking under the name of Louis Saveurs. Prime market for these products is France and it registers about F15 million annual turnover.
11/09/99	The City of Cognac has another busy weekend with the annual Foire-Exposition and relentless promotion of Cognac, Pineau des Charentes and vin de pays charentais among other regional products. It is like preaching to the converted while other parts of France and abroad are completely ignored. This narrow minded and stubborn obsession of promoting Cognac primarily in the region of Cognac reminds us of some southern American politicians (i.e. Jesse Helms) who would like to believe that nothing else exists outside the borders of the southern USA. We all know how wrong they are but how we can get the Cognac industry to look beyond their own noses? A repeat - when the Cognac sales drop below 100 million bottles per year it will be too late!!!
10/09/99	Cognac Café in the City of Cognac is auctioning its furniture's this coming Wednesday. A sad end to an ambitious project. Was it located on the wrong side of the François Ier Place or was it something else? At the same time, Le Globe, a similar but warmer establishment gloats with 50,000 coffees, 80,000 beer on tap and 35,000 Cognac glasses sold. (Sud-Ouest 09/09/99)
08/09/99	When in Paris, do not forget to buy or to drink Cognac. Our correspondent has walked Paris for 4 days and did not see a single advertising promoting Cognac and when he relaxed his feet on Champs Elysée and ordered CognacTonic the waiter said: "Ah you Americans, you destroy even that!". It is only when he got to Cave Augé on Boulevard Haussmann, a smile appeared on his face. A shop full of Cognac and Cognac expertise. He asked: "Which product do you sell most?" The answer was decisive: "Paul Giraud and Ragnaud-Sabourin, they have very good price value. And Lheraud for the vintages". It is there that we spotted Philippe Riviére' Eau-de-vie des Charentes at 68% vol. and Fine Changaud 1914 from Maison Prunier. Only a few meters up is a new Cave Vignoble Passion (www.vignoble-passion.com) where a young owner sells wines but also Duboisgalant, Les Antiquaires du Cognac (an XO Magnum catches your eye when you walk in) and Cognac Banchereau is to be added shortly. And then we stumbled on the Maison du Whisky (www.maisonduwhisky.fr) at rue d'Anjou. Surprise, but Cognacs from Lheraud, Delamain were prominently displayed. At the large wine and spirits chain Nicolas, we counted only 3 Cognacs (their own label, Godet and Hine) on their September promotion list. Hediard and Fauchon have a very wide selection of Cognacs at very high prices. So, Cognac is in Paris but you really need to look for it as the present BNIC promotion campaign targets Lille and PoitouCharentes regions but not Paris. Is there a logic to it?
08/09/99	Seagram tightens its grip on the poorly performing subsidiary Cognac Martell with the departure of several long-term employees including Patrick Firino-Martell who is being replaced at the top by Robert Pouchayret from the outside of the Cognac industry. This change has been brewing since early June. But is it too little, too late or is Cognac Martell still salvageable? Further layoffs will be necessary, number of products need to be cut and the quality need to be improved. It is also time to start selling real estate, as well, for example Château de Chanteloup and several warehouses. And finally, a new, modern marketing campaign need to be developed. And there is so little time left.
07/09/99	Changes at the Tribunal de Commerce in Cognac result in the departure of Gérard de Ramefort, its President. The mishandling of the Cognac Hardy bankruptcy process has probably claimed its first victim.
07/09/99	While the grapes are ripening in the September sun and getting ready for the harvest, some Cognac viticulteurs are back to their old tricks like blockading the City of Cognac and directing their protests at the trading (negoce) community of Cognac. Wrong target, again! How about forcing restructuring of the industry (consolidate, merge, get prices lower etc.), how about getting BNIC to market Cognac worldwide rather than concentrating on France only? How about reducing number of commercial Cognac bottlers as there are some 600+ already in a shrinking market? Get the government to relax some of the rules, even on a temporary basis, like succession duty, product taxes etc.
05/09/99	The idea began to germinate some 4 years ago at BNIC. Les Ambassadeurs du Cognac are now 140 strong and growing but still limited to the Lille and PoitouCharentes regions. They are bars, restaurants and discotheques who signed a charter of the Ambassadeaurs du Cognac with BNIC. The basic premise of this charter is to sell Cognac with ice, with mixes and as a digestive at a price of whisky. Those establishments sell approximately 6 to 400 bottles a year each, with Cognac Bisquit being most popular and Hennessy PureWhite close second. Over 600 Cognac producers were given point of contacts at those establishments to offer their products. In a quick Torula News survey, only 2-3 producers have contacted these places in the City of Cognac. A noble idea that needs a bit of polish ... First and foremost, the consumer must recognize that the establishment is an Ambassadeaurs du Cognac. Today, there are no visible signs to confirm it. A simple but classy sign will do. Secondly, when Torula News first commented on the subject, it received several emails from establishments as far as Norway and Thailand. So, there is a need to expand this concept not only to Paris, Lyon, Metz, Nice, Pau and Toulouse but abroad as well. Thirdly, motivate Cognac producer (it appears that many of them need it) to take the advantage of this idea. For example, run a contest in year 2000 for bottles most sold to the member establishments. And finally, a note about prices. Les Ambassadeaurs du Cognac sell Cognac&Mix for prices ranging from F10 to F40 with an average of F25. The charter should be amended to let the establishment sell Cognac at the most competitive price, set by themselves. Targeting whisky but ignoring other spirits is short sighted. Let the charter target any competitive spirit: gin, vodka, whisky, rum etc. And, there is a need to add a clause in the charter that talks about quality of product, of service. No matter how you serve it and what price you sell it, Cognac is a product that must be synonymous with quality! A work in progress that needs additional investment, broader horizons and a more competitive approach.
04/09/99	City of Cognac celebrates end of summer, beginning of school year and a very successful tourist season with a 3 day extravaganza called Coup de Chauffe this weekend. Cognac Hennessy and Rémy Martin together with BNIC and Young Viticulteurs Association led by the ever active François Mery made Cognac a very visible presence. The lines of Cognaçaise queuing around the Tower of Cognac, the creation of Nicole Massé from Angouleme, showcasing some 80+ products were truly impressive.
04/09/99	Once Carrefour and Promodès conclude their merger and become the No.2 global supermarket group, behind Wal-Mart, their impact will be felt in the Cognac industry; centralized purchasing, downward pressure on the purchase prices etc. Is the Cognac industry prepared for it?
03/09/99	First grape harvest in the South West France, namely in Bordeaux region, started last week. The Cognac region is preparing for the harvest to begin towards the end of this month. Expectations of good harvest are running high among viticulteurs. It is now all up to the sun and sky after a very rainy summer.
02/09/99	Recently French government officials failed to arrange a 3-way banking merger-deal between BNP, SocGen and Paribas. Simply put it, freemarket and investors prevailed. Why then, a 3-way battle for Cognac Hardy continues amid confusion, politics and appeals. Why not let the highest bidder be allowed to win? Cognac Bisquit problems continue as well, Unicoop, a parent of H.Mounier (makers of Cognac Furio and Prince Hubert de Polignac) is basically insolvent and now the rumors are surfacing of a major problem among quality producer in Grande Champagne, and yet, the Cognac industry continues in its merry way of yesteryears. Local politicians are involved to preserve status quo and to avoid much feared but needed layoffs. The Pernod-Ricard group (a parent of Cognac Bisquit) is imitating RémyCointreau (a parent of Cognac Rémy Martin) with ill conceived solutions of shuffling personnel between their various operations, Cognac Martell has consolidated its marketing in London and there are others who paper over the problems. Time has come for the Cognac industry to accept that the free market is here to stay, the business is global and the changes have to be implemented sooner rather than later. So, what would happen if the Unicoop was auctioned off (yes, the Tribunal de Commerce in Cognac would have to accept foreign investors), Bisquit merged, Rémy Martin bought it's suppliers of eaux-de-vie (about 1000+ viticulteurs), Couvoisier bought and merged Tiffon and A.E. Dor and so on. The possibilities are endless. And, BNIC would run a global advertising/promotion campaign explaining Cognac in generic terms (digestive, mixes, ice and so on). Is this a dream? Not really. Cognac Hennessy has already shown the way by buying Cognac Hine and disposing of Pelisson. ChappelleSonneville, a grouping of 5 producers is another step in the right direction. And there are few others. The global investment money are roaring to get involved in the Cognac industry. An expression of "buy low, sell high" is very applicable here. Otherwise, Cognac is becoming a niche drink and the sales of less than 100 million bottles per year are not that far away. Who could lead Cognac industry out of its tail spin?
01/09/99	Lusina ISG, Inc., a parent of www.swfrance.com, www.cognacnet.com and www.torula-news.com announced the appointment of P.J. Havas, formerly of The New York Times On-line Services, to a position of Director, Business Development. Mr. Havas is based in Paris, France.
	Global News for: 1999: August July June May April March February January 1998 Torula News logo courtesy of Marie Claire Pajeile.

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