Torula News October 1998

30/10/98	La Nuit du Cognac, second edition of this event organized by Conception Dynamique (Carole, Sonia, Mathieu, Pierre & Olivier), takes place on 31 October in Segonzac at the Salle des Alambics in Segonzac. 23 different Cognac producers offers their products, lots of music and fun. A great event! See 1997 pictures here.
29/10/98	Cognac Courvoisier parent, Allied Domecq reports encouraging, strong financials. It continues to pursue a deal with Seagram, parent of Cognac Martell. Will we see Courvoisier and Martell in the same group? And which one? (FT 28/20/98)
29/10/98	For the Cognac industry all roads lead to Paris ... and in the meantime Jens Larsen and Mme Avoire are the leading candidates for the Presidency of BNIC. A clause restricting elections of the President to the 34 members of the BNIC board, should be suspend it for 2 years and an outsider should be appointed President. Cognac industry and the BNIC need new and fresh approach, new ideas and less local compromises.
28/10/98	34 members of the BNIC Board of Directors (17 each representing producers/viticulture and traders/négoce, respectively) have a daunting tasks ahead of them to elect a new President of BNIC. Jacques Guibé, an outgoing President, leaves the job on the 15 of December '98. At this very delicate time for the Cognac industry it would be wise to adopt some simple rules re: BNIC Presidency; elect for maximum one, three year term a President and Vice President, each representing opposite activity (viticulture - négoce), rotate them each new election. As the industry needs much calming down of the rhetoric, rebuilding its relation with both Prefects and implementing some hard choices, Torula News believes that a special, two year term for a professional from outside of the Cognac industry, preferably a foreigner, would be the most pragmatic choice. Its time for some drastic choices and decisions. Electing a President of BNIC is one of them.
26/10/98	Château de Beaulon expands its Moulin de la Grange product line from Fine et Délicate VSOP Cognac to Pineaux des Charentes' white, red and Très Vieux. Prince Hubert de Polignac introduces 20 cl AC Adventure Cognac at 40% vol. as a base for long drinks. Smart shelve positioning finds this product among vodkas.
26/10/98	Since our June '98 story on avalanche of new Cognac based products, Torula News kept a watch for another wave of new products. And here they are. We are both amused and disappointed; lots of creativity but also a devaluation of Cognac in disguises of new products. For example: Aperitif Pétillant au Cognac from Sarl Lys which contains 30% Cognac, 20% sugar cane and 3g/l carbonation; Midday which is 50% Cognac Petite Champagne and wine distillate; Aperitif Charentais Pinokio which is a mix of Pineau des Charentes, Cognac and exotic aromas at 20% volume. These and many similar products are now at the French supermarkets at very high prices and no promotional campaigns. Is this another dead-end for Cognac?
24/10/98	X.O Magazine, a reincarnation of an old Magazine du Cognac Planete X.O., made its debut on the newsstands in France. Much improved on the editorial side, more slanted towards fashions and deluxe products, its Cognac coverage features an interview with Claire Coates of BNIC, Philippe Gay' article on Cognac markets and number of Cognac product ads. A big retro step for the magazine in the coverage of Cognac is to revert to the official party line as dictated by BNIC. Not a single medium to small producer of Cognac is mentioned in this issue. A great opportunity to present all of the Cognac industry is wasted again. Let's see what the next issue brings re: Cognac.
24/10/98	Harvest in the Cognac region is coming to the end with smaller yields and an average sugar/alcohol content. Several Fête de Vendanges celebrations are held across the region in subdued and somber tones.
24/10/98	J.M. Deau and Hennessy show the way in aggressive pricing and promotional activities in the Cognac region. This clearly points the way to increased sales of Cognac in France and to start competing against whiskies on the pricing level. J.M. Deau priced its complete Cognac product line at the low end of the pricing range while Hennessy came up with an enticing F30 at the cashier rebate scheme for their VS. Right approach to reclaim a French market for Cognac. Check here our quarterly retail price summary.
23/1098	SIAL'98 ended yesterday in Paris. 110,000 food and beverage professional visitors view some 2000 exhibitors from around the world. Wine, beer, whisky, armagnac and brandy were well represented. Cognac was not.Torula News found the following Cognac producers present: Unicognac, H.Mounier/Unicoop, GCF' Cognac Comte Joseph, Lise Baccara and Domaine Castel Sablons. Congratulations to them and a big question is to be raised, where were BNIC, Poitou Charentes region stand and 500+ other Cognac producers. French Chambers of Commerce and their Promotion Committees organized a special introduction of new products. Among them were beer from Corsica, non-alcoholic Champagne, Saumur Champigny wine from Loire but not a single product form the Cognac region. No Furio Long Drink (although, it was displayed at the H.Mounier stand), no Urb'n Extra Young, no Felixy, no La Guignette, no Crème & Cognac, and many, many others. While we admired Unicognac' ONA XO Fine Champagne packaging, we were told that it is not possible to taste it as the content on the display is fake. But they quickly added that their Ansac Cognac product line is the fifth selling brand in the USA. How about that for marketing approach?
23/10/98	Representatives of the Cognac industry had a preliminary meeting yesterday in Paris with the officials at the Ministry of Agriculture. Next meeting is scheduled for 15 November. With a new Minister and new appointments in his office, it was understandable that yesterday's meeting was one of mutual courtesy. This additional time should be taken for developing more in-depth and long term plan for re-structuring this industry; lower or grant outright exemption from taxes across the board for a period of up to 5 years, liberate eaux-de-vie purchasing programs, restructure BNIC, change AOC to allow marketing of Cognac Blanc, improve quality of the product through stringent approval methods, develop generic, global Cognac promotion and advertising campaign, invest in business and marketing training of the small and medium size bottlers of Cognac, re-examine role of ORECO, develop futures (MATIF) market etc. In short: get the show on the road.
23/10/98	1905 Vintage Champagne Heidsick bottles were auctioned yesterday, at about $4500 per bottle, by Christie's in London. They were salvaged, recently, from the Swedish boat Jonkoping that sunked in 1916 in the Baltic Sea together with the barrels of Cognac. The salvage company expects similar prices for the bottled Cognac, once the process of "refurbishing" it at the Cognac Bisquit in Rouillac is completed. Check Torula News coverage on this story in prior months.
21/10/98	Jean Glavany, a veteran of Mitterand administrations, takes over the French Ministry of Agriculture at the time of a major confidence crisis in the Cognac region. Will he be pro-viticulteurs? Will he have enough cloud to obtain tax and financial concession on behalf of Cognac industry? Will he financially and politically support the necessary restructuring and promotion of Cognac? First round of negotiations between Paris and the Cognac industry begins tomorrow.
20/10/98	Tax Free World Exhibition opened in Cannes, France yesterday expecting nearly 6000 visitors viewing goods presented by over 500 exhibitors, among them several Cognac producers. An interesting concept of Internet based pre-ordering has been introduced at www.dutyfreeguide.com . Europe leads in duty free shopping followed by Americas and Asia. Heathrow Airport followed by Silja Line and Honolulu Airport are the leading duty free shopping locations. One key question is being debated: "Will the intra-European Union duty free sales end on the 30 June 1999, be postponed or the whole idea scrapped? There are many voices heard that the effect of ending duty free sales in EU will be less devastating that initially thought and that liquor and tobacco products will be hardest hit. (IHT20/10/98)
19/10/98	As the harvest nears the end, blues descends on the Cognac region. A series of tense meetings at major Cognac Houses (i.e. Hennessy, Martell), several terminations among the marketing people, lack of major, global advertising and promotion campaign about the product, upcoming (22/10) negotiations with Paris and a very confused French market for Cognac (flood of low quality products, many "Cognac based mixes" like products and high prices and small shelves space vs. whisky). And finally to add oil to a fire; a 4 pages insert in Sud Ouest, a local newspaper, by the Poitou-Charentes Region fails to mention Cognac, Pineau des Charentes or Vins de Pays Charentais. The only bright spot on the horizon is Le Cognac en Fêtes ! and a few medium and small size producers who concentrate on quality and value pricing and accepted globalization of market..
17/10/98	"Le Cognac en Fêtes ! " - brilliant idea of promoting cognac in Paris at the Gare Maine-Montparnasse from 31 October till 8 November '98. This worthwhile event is co-sponsored by BNIC and Bouilleurs de cru des Charentes. We need to see more of such promotions across France and, at least, in other capitals of Europe.See our 29/09/98 story.
17/10/98	Aperitif Magazine in Oslo, Norway conducted recently a professional tasting of XO cognacs. The winner was Frapin VIP XO Grande Champagne followed by Bache Gabrielsen XO Fine Champagne and Hardy XO Rare Bronze Fine Champagne. For details check their results page.
16/10/98	Seagram, parent of Cognac Martell, sold its two big name champagne product lines; Mumm and Perrier-Jouët. Is this the beginning of spirits divestiture or just trend following recent champagne portfolio reshuffles.
15/10/98	LVMH, parent of Cognac Hennessy, reported 8% revenue drop in the first nine months of 1998 blaming it on the duty free and Asian markets sales drop. Immidiately, cognac region swirled with a rumor that Moet-Hennessy group is on the block.
13/10/98	Theme bars and restaurants fashion is to be exploited by City of Cognac based businesses. Cognac Cafe, launched this summer, looks to expand abroad through franchising their concept. La Cognatheque, a quality, traditional store, thinks of franchising as well. And, in Scandinavia, Bar1 in Oslo is accepting franchise proposal, today. Great ideas, bad timing but with perseverance they might have a winner! Will the ownership change as well, it some of those businesses?
13/10/98	Just as the Cognac growers and producers returned from the barricades to a rainy harvest, high school students went on strike in the City of Cognac. This action is in support of a coordinated national strike by French students.
12/10/98	Cognac Martell introduced new product Reserve de Martell (single harvest, single Borderies cru) which retails in the UK at £20 a bottle. It is positioned a notch above Martell VS. It is targeted at young buyers.
11/10/98	World press coverage of the cognac depressed markets continues... It also highlights a schism between traditionalists (who believe mixing cognac with fruit juices, tonic, coke etc. is plainly wrong) and BNIC, (which blindly follows the big Four Cognac Houses), which promotes cognac with various mixes. At the same time, BNIC refuses to re-define rules of cognac appellation to allow for example, White Cognac at 12 months age. This would make sense as it would target white spirits market (i.e. vodka, rum) that has captured significant market share of the young and new buyers.(From the UK, Reuters, Australia, FT and the USA press)
10/10/98	New Armenian brandy, Mesrob Mashtots, produced in Armenia, bottled in France will arrive on the American shelves shortly before Christmas '98. A globalization at its best!
10/10/98	2nd "La Nuit du Cognac" is scheduled for 31 October in Segonzac. After a big success last year, Pierre Forgeron and his team are working hard better last year success of 400 paying guests who sampled cognacs from 26 producers and 'negotiants'. For more details email: 11332111@compuserve.com For last year photos, click here.
08/10/98	Juillac-le-Coq in Grande Champagne cru is a site of a new telefilm for France 2. 30 technicians and 12 actors are filming in the region for the first time since 1994, with an assistance from young, local viticulteurs.
06/10/98	A misguided work stoppage...This time at Cognac Martell head office in Cognac, where 250 union workers protested, for one hour, against Seagram investment strategies.
05/10/98	Grape harvest started in the Cognac region, with some delaying it for another week. A rainy weather expected throughout.
04/10/98	Alain Braastad of Cognac Delamain, has been elected to the Academie Saintonge in Saintes. A good addition to the cultural Academy of the region.
03/10/98	After 4 days and 3 nights, protests and blockades are over in the Cognac region. Viticulteurs start the harvest on Monday and the negotiations are to be continued at the end of October. No winners, no losers just a lot of frustrated viticulteurs. In the meantime, search for solution continues but no one has the strength and conviction to radically change this industry. While the big Cognac houses attempt to "tighten the belt", viticulteurs face a difficult season of harvest, distillation and production with overall drop in revenues estimated at 25-30%.
03/10/98	The International Spirits Challenge organized by Wine Magazine, held in London in May of this year, finally released official results. Big winners were: Armagnac: Sempé 1963, Bourbon: Very Olde St Nick 20 Y.O., Cognac: Château Fontpinot Grande Champagne, Gin: Tanqueray London Gin, Fruit Liqueurs: Pages-vedrenne, Rum - dark: El Dorado 15 Y.O., Rum - white: Wray&Nephew White Overproof, Vodka: Van Hoo, Scotch blends (12 years +): Ballantine's 30 yo, Scotch blends (11 years old and under): The Royal & Ancient, Single Malts (12 years old +): Lagavulin Distiller's Edition, Single Malts (12 years old and under): Safeway Islay 10 y.o. Once again, Cognac Frapin wins the big one! Nice showing by Courvoisier across all qualities! For more details check Industry Awards page. (Wine Magazine - 10/98 / Torula News)
02/10/98	German language Swiss magazine Vinum in its September issue reviews web sites covering cognac. Sites mentioned are: www.le-cognac.com , www.cognac-world.com, www.swfrance.com, www.cognactoyou.com, www.remy.com, www.remy.de, www.courvoisier.com and www.reff-art.com. (Vinum, September 1998)
01/10/98	Press outside of the region covers protest in the Cognac region: Financial Times, The International Herald Tribune, La Tribune and others.
01/10/98	In September '98, www.swfrance.com registered over 20,000 visitors. See site visitors page.