Torula News

a news service for Cognac and the region  edited by M. Andrew, F.I.J.E.V.

Duty Free sales account for 2.6% of global export business writes www.generation.se They comment: “The Wines & Spirits group, which fell -7.5% in 1999, is now relegated to third place, mostly due to lost sales in Europe. Here, the liquor business was cut by an average of -13.8%, and the statistics were considerably worse for some products categories within this group. However, there was some good news from the Asia & Oceania region where Wines & Spirits sales rose +8.5%, compared with a fall of -27.9% in 1998. “

Cognac counts for 3.9% of total duty free wines and spirits sales (about $807 million). In 1998, Rémy Martin VSOP placed 5^th and Courvoisier 25^th in Wines & Spirits sales category.

You can buy Rémy Martin VSOP at the Duty Free in Miami for $49.95 or in Frankfurt for $32.75. Check the prices at www.generation.se or if you are flying via Iceland’ Keflavik Airport at www.dutyfree.is for best prices. For example, 1 liter VSOP prices range from Prince Hubert de Polignac $20.46 to Renault Carte Noir $32.63. The .70 cl XO prices range from Courvoisier and Hennessy at $69.69 to Rémy Martin $71.90.  (IHT13/11/00, Generations AB)

Restaurant La Cagouille, in Paris, Saturday, 2 December 2000, 09:30, tastes products from Cave Particulières, independent Cognac producers with producers’ participation. For details click here.

What’s in a name?

Centre universitaire de la Charente / Site de Segonzac is the new name for Université Internationale des eaux-de-vie et boissons spiritueuses. Offering a double degree, this misguided and directionless University has attracted 17 students, a net gain of 8 from the previous year. From the original concept of a University level study of eaux-de-vie (right subject, right region and needed schooling) this University has added spirits to its name over the past 10 years. Lacking in funding, management and industry real support it has struggled with attendance in low teens. Than the politicians took over. The Director was gone, the funding is promised and the name has changed. The attendance inched up to mid-teens. We notice from press photo (Sud Ouest) recently that they taste rum. Nothing wrong with that except that the sales of eaux-de-vie (cognac) in France are down for the year in the double digits. On one hand, the Cognac region blames whisky for its poor performance in France on the other hand the University introduces another competing spirit, rum, at this moment. How about going back to basics – eaux-de-vie (Cognac)? Teach, research and work with Montpellier, Bordeaux, UC Davis and other universities around the world. In the meantime, BNIC is setting up educational activities in China usurping the role of an Eaux-de-vie University (Centre universitaire de la Charente / Site de Segonzac) in Segonzac, capital of Grande Champagne cru. A case of blind leading the blind, maybe?

Fine Champagne and Petite Champagne

Starting at the bottom of the range, Rémy Martin offers its VS Grand Cru as exclusively a Petite Champagne product. Are we seeing a departure from Fine Champagne concept at Rémy? The TV nanosecond blur (see our item 21/11/00) is now confirmed in the latest promotion material titled “moments choisis de Rémy Martin”. It confirms ‘eagle eyes’ of our English correspondent.

68% of the Internet speaks in English

By various counts there seem to be over 2 billion web pages on the Internet. Our host site has nearly 480 of them, of which 40% are in French. According to a survey by VilaWeb, a Catalan language web site, English language web pages account for 68% with Japanese and German distant second with 6% each. French language web pages represent only 3% of the total. Moral of these numbers is that when you do a Cognac web site it must be at first in English and then in French and other languages.  (PCMagazine19/09/00, Torula News)

New Prince Hubert de Polignac

Its parent, H. Mounier, recently announced new “clothes” for the VSOP product line and the new product, Premier Grand Cru Grande Champagne.

The VSOP collection under the title “The Art and Elaboration of Cognac” presents 3 stages of Cognac production; La Vigne et Les Vendanges (Vines and harvest), Distillation, Alambic and fire (La Distillation, L’Alambic et Le Feu) and Aging and Angel’s share (Le Vieillissement, La Part des Anges). The Company objective is to educate consumers in the Cognac process, worldwide.  An ambitious undertaking with well put together visuals. A picture of the bottle on the outside tubular gift packaging helps consumers who buy by the look of the bottle. They don’t need to open the tube to see what they buy even though the proof is in the bottle! Click here to view.

In late October, the Company introduced Prince Hubert de Polignac Premier Grand Cru Grande Champagne, a new product, and a blend from a single cru that fits between VSOP and Napoléon. Again, the emphasis seems to be on packaging with its unique bottle: “…evokes a budding flower, blossoming into an exceptional Cognac, with a deep, rich bouquet” – we quote from their promotion material.  Good colors combination with some strange choice of fonts (i.e. Premier Grand Cru) makes consumer wonder what exactly they are buying: VS, VSOP, XO or something new. Again, the proof is in the bottle.

We tasted and scored this Cognac at 17 out of 30. Our tasters rated nose (deep bouquet, lots of flowers, hints of chocolate) higher than mouth (sweetness dominates and shortens its length) experience.

Merlin Hors Pair, Prunier XO and Landy XO. Petit XO Extra generates most positive response among satisfied customers. The XOs account for 50% sales that climbed this year by 200% reports No. 1 Cognac e-commerce web site in Germany.

This is good news as it confirms that from the haze of VS and VSOP advertising emerges a steady and loyal consumer who moves up the chain and buys XO and higher quality products. As important, is the fact that with a right product offering and good pricing Cognac can be sold on the Internet.

Prix Cognac

The 13^th European Literature Exhibition (Salon de la Litérature Européenne) was held in Cognac from 16 to 19 November 2000 under theme of “Europe: cultures without borders”.

The winner of its main prize was a young French literary critic Marie-Laure Delorme. The main sponsor, Hennessy Cognac and its President Christophe Navarre, presented the prize. 

At a little known Mystery Film Festival (a brother or cousin of the Thriller Film Festival in Cognac) in Morioka, Japan in October, they awarded a prize with the same name and it was sponsored by BNIC (The Cognac Association). Confusion, you ask or a “standard operating procedure” of the BNIC!

Hélène Bastier and her literary efforts are a class above the Thriller Film Festival. But most important, the literature with its thirty something and younger winners, with its embrace of media and e-publishing are far better association for Cognac; the town, the region and the spirit than violence and ‘Americanization’ of the Thriller Film Festival. This annual Literary event has only one competitor in Cognac; Blues Passion Festival that has become No. 1 Blues Festival in the world. Let’s support Literary and Blues events and cancel Film Festival in Cognac and its association with Morioka.

Rémy Martin Petite Champagne?

Cognac in Beaune

140^th Vente des Vins des Hospices de Beaune has been celebrating all weekend with a participation from Cognac region of Barik A Rhythm, a percussion group playing on barrels supplied by Taransaud Cooperage and managed by Maurice Izambard.

Pernod-Ricard (parent of Cognac Bisquit) reported an increase of 24% for the first nine months of fiscal year 2000. Third quarter sales increased by 21.3%. (9/11/00Business Wire)

H. Mounier, a parent of of Cognac Hubert de Polignac has expanded its Furio line to include Furio Gin and Furio Tequila in addition to Furio Cognac. But as they say, the devil is in the details, the sales numbers details.

The precedent setting US Presidential election is in the hands of Gore and Bush lawyers. There is even talk that the 2004 election will be conducted by lawyers not the citizens. The heads of Allied Domecq and Diageo are being replaced by lawyers in the battle for Seagram (parent of Martell Cognac), as well. It has to do with the rights to Captain Morgan Rum. In both cases the stakes are high. The key players, in both cases, are preparing for a long legal battle. The fate of the US Presidency and Martell Cognac may remain unknown for a while.

They are buying Cognac everywhere in Amsterdam. In the open market at Albert Cuyp Straat (click here), at the Henk Elzinga shop where Raymond Ragnaud, Ragnaud-Sabourin, Jean Fillioux, Maison Charbonneau, Château Montifaud, Giboin, Bernard Boutinet and Roullet products are available and in the supermarkets. Among Martell, Hennessy, Rémy Martin and Courvoisier VS and VSOP products, we noticed Dupont Imperial Fine Cognac (a Camus product), Joseph Guy (imported by Rémy-Bols) and Bouquet Cognacs. The latter two are *** qualities with "Distillation d'Origine" and "Certificat 'Jaune d'Or'" on the labels. When asked, nobody in the stores had any idea what those designation mean. We do not know neither.

Guru, an international recording artist, famous for his Jazzmatazz series has lend his voice to Martell Cognac's marketing and advertising campaign: "Meet Martell" and "I am Martell". This maybe is an initial step in finding a business guru, as well.

Barcelona is the capital of Catalunya, the fastest growing region of Spain. The country known for its culture of drinking brandy, wines and excellent gastronomy. So it was no surprise that Gerard Allemandou and his La Cagouille cooks from Paris, spend a week at Cal Ble in Igualada, some 60 km from Barcelona, cooking up a storm and using many products from Charentes. Equally, it was no surprise that Cognac led the way. The Spanish market was basically abandoned by the Cognac industry in the past few years. Today, there are clear signs of revival as, for example, a major brand just bought a large distributor in the country. Bringing Cognac to Barcelona where only one restaurant carries about 10 products, the rest has either no Cognac or one old and tired bottle of VS or VSOP was timely. Gerard Allemandou brought Clos Romas, Paul Beau, Michel Forgeron, Jacques Leteux, Merlin, Ragnaud-Sabourin, Dudognon, Esteve, Frapin, Les Antiquaires du Cognac and Hennessy Cognacs. There were tastings for the hospitality industry, press and invited guests at the famous Figuerola at 405-407 Pedro IV in Barcelona and numerous tastings at Cal Ble that were over subscribed. It was pleasure and joy to participants to meet producers from Clos Romas, Forgeron, Hennessy, Dudognon and Ragnaud-Sabourin. When Torula News arrived at Cal Ble on Wednesday morning, Gerard and his crew beamed with pride and were doubling on the coffee trying to recover from a very successful dinner the previous night at which Cognac producers were the stars. He is a true Ambassador of Cognac.

Often the employees of the BNIC complain about Torula News being critical of  their management and the overall activity of the BNIC. Well, above is the prime example of what can be done, what should be done by the BNIC for the Cognac industry. And that is not all, of course.

In the October issue of the Beverage Media for Metro New York they are talking about Cognac. We quote:

Jacques Anasazi, Inn of the Anasazi, Santa Fe, New Mexico: "We have a broad selection of the better-known brands, but we also feature gems such as Delamain, Julien and A. de Fussigny."

Gary Sullivan, Rialto Restaurant at Charles Hotel, Cambridge, MA: "Expensive Cognacs are showing a resurgence. Our customers want to know more about hand-crafted products such as Brillet XO and Kelt XO. At the same time, we do a good business in Martell and Hennessy, brands that have their own loyal following."

Carolyn Ellison, Senior Brand Manager, Schieffelin&Somerset: "Our success with the Hennessy Sidecar convinced us to develop the Continental, a twist on the Cosmopolitan that re-affirmed the feasibility of the approach."

Stephanie de Bartolomeo, Director of Marketing for Courvoisier: "To that end, we have developed drinks for bartender which nurture the sophisticated tastes and aspects of Cognac as a mixer."

Vincent Geré, International Product Manager at Rémy Martin: "Do it, don't talk about it. Our bartender presentation emphasizes the importance of blending quality Cognacs. Our philosophy: Rémy Martin is like an orchestra where you play more than one instrument to achieve harmony".

Greg Sherwood, Commercial Director of North America for Seagram: The major trust for the holidays will be based on the theme 'Meet Martell' aimed at modern, independent consumers looking for genuine quality and value.".

Cathleen Burke, VP Marketing for Kobrand: "With the heightened interest in Cognac, the addition (VS and VSOP)   is a natural extension of the Alizé line.".

Gary Schlem, General Manager of wine and spirits at Palm Bay Imports (importer of Cognac Frapin): "As owner of the largest single vineyard in the Grande Champagne district, we are a boutique high-end producer and that's the key to our marketing.".

Michael Avitable, VP Director of Marketing, Marie Brizard: This year Marie Brizard is offering three bottles of Gautier's XO Pinar del Rio 'cigar blend' in a limited edition wooden case, specifically to satisfy the discriminating palates of cigar lovers.".

Claire Coates, French Cognac Bureau - "Americans have come to appreciate that served straight over ice, with soft drinks, fruit juices, or as a splash in coffee, Cognac is truly a drink that offers an astonishing marriage of three centuries of tradition, as well as contemporary innovation.".

And finally, the article author, J. Herbert Silverman wrote: "Whether promoted as a base for new, trendy cocktails, to go with after-dinner cigars, or simply for reflective sipping, Cognac and Brandy are making their presences felt.".

About a year ago, designer Pierre Cardin, owner of the world-famous Maxim's restaurant selected Cognac Landy which is owned by Gabriel&Andreu to produce Maxims' de Paris Cognac.   They sell Maxim's Cuvee Prestige which is an 8 years old, Maxim's Tresor, a 15 years old and Maxim's XO which is a 35 years old. In addition Gabriel&Andreu supply Maxim's with Armagnacs, whisky, gins, vodkas, Calvados and various liqueurs.

The Appeal Court in Paris, as expected based on the legal precedent of Ines de la Fressange case, ruled against this friendly and excellent Cognac maker but unwise businessman. Gabriel&Andreu, his former partners and current owners of the brand name "Cognac Pierre Ferrand" should be generous in their victory and accept a symbolic franc instead of court awarded FRF500,000. For us who appreciate Pierre Ferrand Cognac making skills, we will continue buying it under the name of Pierre de Segonzac. When we first wrote about this, we noted BNIC' (The Cognac Association) complete lack of interest in this case while few Cognac producers have tried to help. There are other similar cases pending in the Cognac region. Rather than seeking court imposed solutions, BNIC could set up a binding arbitration process along the lines of the International Chamber of Commerce in Paris. Furthermore, lack of proper brand and product identity registration mechanism in the Cognac region leads to such situation. But the BNIC priority and effort is spend on meaningless Film Festivals, misguided promotions (i.e. CognacTonic), travels to Vietnam and, of late, to a new favorite destination China, and complains that the European Union is demanding re-payment of subsidies. This last issue remains unsolved for the past 25 years. 

After Vin&Sprit AB (owners of Absolut Vodka) objected to the automatic distribution rights transfer to the winner of the Seagram (parent of Cognac Martell) auction, the word comes that the owners of G.H. Mumm and Perrier-Jouet, an American leveraged buyout firm of Hicks, Muse, Tate & Furst Inc. is objecting on the same grounds. They added a new twist to their objection - the rights transfer objection applies to any company that already owns champagne. That puts Diageo on the spot as it owns 34% of Moet Hennessy, a division of LVMH that produces Moet&Chandon champagne. The three key bidders are beginning to question whether Seagram owns all the brands it is trying to sell. IHT quoted a person involved with negotiations as saying: "It's like buying a used car, we want to see the registration".  As we predicted in June, one way or the other Bernard Arnault will have influence on the results of this auction. He owns LVMH and a small percentage of Diageo. These complications are results of archaic European and Japanese business practices of buying small percentage cross-shareholdings in each other businesses, making one track distribution deals (long term with no opt-out clauses) and keep adding brands to their portfolio just for the prestige and the size. Globalization and, in smaller part, brand rationalization will   sort this out. The spirits industry, after Seagram auction, will sort itself out along the Jack Welch' model applied at General Electric - own brands which are in top 3 positions in their markets. (IHT3/11/00, Torula News)

I am sophisticated, surprising, sensual and enigmatic. So says press release announcing new $3.75 million global communication program from Cognac Martell. Combining new Martell blue colors with print, TV and radio global advertising campaign, new web site at www.martell.com (to be available in early November) and Ms. Martell, the company shreds its cobwebs of uncertain ownership (Diageo or Allied or ???) and takes charge of its destiny in the market place. John Bilelo, Group Head, Cognac, The Seagram Spirits and Wine Group, said: "Over the past 18 months considerable effort and resource have been put against the brand to rebuild equity and generate new growth. We believe this new style campaign and Martell herself will appeal to the modern, independent adult audience who appreciate quality and individual choices. It marks the start of a new  era for Martell Cognac." On the ground, Team J. Menier based in London is implementing this campaign which was developed by the TBWA agency in New York and Digitas which has done the Martell' web site. Martell is the first Cognac house to integrate Internet presence into an overall ad campaign.

The company expects a 5% plus increase in sales in the first year of this campaign.

Maurice Utrillo, a famous French painter made this drawing with following inscription: "Long live the Charente region which has given Martell Cognac and 'La Bonne Lucie' to Maurice Utrillo" in September 1938. In October 2000,  I am Martell campaign follows the art, quality and women with a modern feel and global warmth.

The Martell range, in the US market, includes VS, VSOP Medaillon, Cordon Bleu, XO Supreme, Extra  and L'Or de Martell.

A well thought out campaign that spans the globe. It confirms that Martell is back in running to reclaim its position among the top brands of Cognac. And this correspondent continues to drink Martell Cordon Bleu for the past 26 years regardless of ad campaigns. The quality speaks for itself.

This 4th generation producer who works from a 54 hectares vineyard completes the famous triangle of the best of Fins Bois; Roullet, St.Estephe and Claix-Blanzac. Edgard Leyrat is a proud, quality minded viticulteur who produces Napoléon (at 42% alc. vol.), Vieille Reserve (at 42% alc. vol.), XO and XO Elite (at 40% alc. vol.), Extra (45% alc. vol.) Brut de Fûts Hors d'Age at 45% alc. vol., and Très Vieux Sélection Edgard Leyrat at 43% alc. vol. And his Vieux Pineau is also of highest quality. For more details click here. Torula News and Rixendis' tasters tested Edgar Leyrat' VSOP, XO Elite and Extra. Tasters scored VSOP 20 out of 30, XO Elite 24 out of 30 and Extra at 23.2 out of 30. Excellent quality, properly assembled and well aged products was the unanimous opinion of all tasters. For tasting details click here.

Our correspondent searched for a morning cup of coffee on a recent trip through the volcanic region of France. Somewhere between St. Nectaire (a famous cheese producing town) and source of St. Diéry mineral water, he stopped at a tiny bar. The owner shared a coffee with him and when asked about demand  for Cognac, she proudly pointed at the shelf and said: "This is my favorite". It was Cognac Otard.

.Torula News logo courtesy of Marie Claire Pajeile.

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C20 May 2001                                                                   Copyright © 2000 Lusina ISG, Inc.