Torula News November 1998

28/11/98	Financial markets ignored problems in the Cognac region and registered significant gains last week, i.e. Rémy Cointreau SA, parent of Cognac Rémy Martin, is up over 22% for the week. Click here for details. At the same time, over 300 Cognac producers rejected government offer for the industry as insufficient at the meeting in Archiac last Wednesday. While the politicians celebrate arrival of INPI (National Institute of Industrial Protection) in the region where it will share its offices with BNIC. Part of the celebration is a multimillion francs investment in on-line computing. How this will help Cognac producers is, of course, anyone's guess.
28/11/98	Hennessy finally makes a move, called Hennessy 2001, to restructure its internal business after launching several new products, restructuring its distribution network and management in 1998. Details will be unveiled on 4 December but it will clearly result in job losses in the range of 75-150 over certain period. Christophe Navarre, President of Hennessy, explained that the short to medium prospects for Cognac are not encouraging especially in Asia and Japan. A step in right direction that should be followed by other Cognac houses. (Sud Ouest 28/11/98; Torula News)
28/11/98	First it was Intermarche in Segonzac (capital of Grande Champagne cru) that decided to sell local products only (read Cognac) and now Leclerc in Cognac opened up L'Espace Cognac stocked with Courvoisier, Rémy Martin, Brugerolle, Forgeron, Phillipon, Moulin de la Grange, Jules Gautret, J.M.Deau, Hennessy, L&L, Prince Hubert de Polignac, Hardy, Meukow, Martell and lots of Pineau des Charentes and cognac based aperitifs. Consumers in Cognac region begin to see regional products on the shelves in their supermarkets. About time!
26/11/98	Seguin-Moreau, maker of barrels and 40% owned by Rémy-Cointreau S.A., a parent of Rémy Martin Cognac, expands world wide and shows over 14% increase in revenue in the first quarter ending 30/09/98. (SudOuest 26/11/98).
25/11/98	Limited quantities of the 1982 Vintage Cognac from Frapin has come to the market in 35 cl bottles and classy packaging at a very reasonable price. This follows a success of their 1979 Vintage Cognac. Olivier Poltes, Cognac Frapin' Maître d'Chai, once again produced a little master piece of flowers, fruits and woody nose with apricots, dry figs and confitures on the mouth. This is pure, uncut Grande Champagne from Chez Piet vineyards of Cognac Frapin. A pleasant surprise for this Christmas.
23/11/98	La Cognatheque of Cognac expanding into England in a venture with a Cognac and Company, Ltd., a leading Cognac retailer in the UK; first via mail order and then ... well the future will tell. For this year catalogue, contact Pete Wear by email: christmas@cognac-co.com or by telephone on 01483 202042 or by fax on 01483 202052. A very good idea!
23/11/98	The Sunday Times of London selects bottle of the week (15/11/98): Bisquit No. 1, a sparkling blend of Cognac, lemon and quarana. It points to the return of the 1950' where Bisquit No.1 Long Drink was popular with the bartenders and a hope that the English gentlemen will start drinking cognac with soda before the dinner. Its spirit writer, Andrew Barr, gives an accurate assessment of the state of Cognac around the world and highlights 2 important facts.It was the Americans who invented cocktails in the 19th century and they were based on Cognac. A classic, Mint Julep, cocktail was a mixture of cognac, crushed mint, sugar and ice. Its more modern version is practiced at the Atlantic Bar and Grill in London under the name of Red Bisquit; crushed red currants, sugar syrup, orange curaçao and Cognac shaken and poured over crushed ice. Float orange juice on top. Good for business but the the question; what next for Cognac? (Sunday Times 15/11/98, Torula News)
21/11/98	Season of "Portes Ouvertes" has started in the Cognac region, with "Open Gates" at Jean-Michel and Claudie Faure in the Fins Bois cru 2 days extravaganza. Featuring interesting Cognac Faure VSOP La Garenne and many regional specialties with Champagne and Bordeaux wines included. All building up to a 19-20/12 and 26-27/12 "Open Gates" at the 400+ Bouilleurs de cru des Charentes.
20/11/98	As the small print clarifies the details, most Cognac producers reject Paris offer as ridiculous, a joke, unsatisfactory. Those are the words told to Torula News. Many meetings by the various Cognac producers unions continue but the bottom lime remains the same - there is no solution in sight and the government offer is not acceptable. For the first time, there is a talk of violent protests among all of the unions.
16/11/98	alapage.com , a new e-commerce web site specializing in French books debuts with a special offer for "Cooking with Cognac and Pineau". Will it be a French amazon.com success story?
14/11/98	Seagram, parent of Cognac Martell, reorganizes its Spirits and Wine group into a centralized structure based in New York. Edgar Bronfman Jr., Chief Executive of Seagram, indicated that Seagram will not sell the Spirits and Wine business but it will attempt to turn it into "an even stronger force in spirits and wine". Number of jobs will be lost and Chivas, Martell and wines offices will be consolidated in the London office. All in all, it looks like good news for Cognac Martell. (FT11/11/98, Torula News)
14/11/98	In the recent rush to increase visibility of Cognac products available on the Internet, two producers, Cognac Larsen and Cognac Louis Bouron, lead the way.Larsen with its Cognac Larsen Center Point pages and Louis Bouron' e-commerce site in conjunction with their importer in Singapore. Two different approaches showing imagination and the future of Cognac on the Internet.
13/11/98	Paris helps Cognac region with financial assistance but is it 60, 70, 83, 153 or 600 millions French Francs over a period of time. Details to be published in the Official Gazette. Pulling out hectares of vines, early retirements and tax relief are the other key features of this assistance package. Cognac producers are, however, divided over the merits of this package. (SudOuest 13/11, Charente Libre 13/11, Torula News)
11/11/98	Luxury goods are recession proof in Japan, including top of the Cognac products range. Recent statistics and surveys make this point. Rolex watches, Hermes Kelly handbags, Vuitton bags, Rémy Martin Extra and others lead the continuing boom. A real drop in sales has been registered at VS, VSOP and XO levels as related to Cognac. The early indication is that Hennessy Irish Whisky, which was introduced in Japan on the 15 October, will do very well. (IHT30/10, Torula News)
10/11/98	Small but very vocal turn out by Cognac producers in Cognac and Saintes, protesting in front of Hennessy, L&L, Prefecture and Tax Offices. Several meetings continue in the region and in Paris with no concrete results in site. In the meantime, frustration among the Cognac producers is increasing and new graffiti and posters are showing up. Rumored removal of surtax on Cognac has not materialized either nor has the BNIC elected a new president. Leading candidate of the moment is Bernard Guionnet. Regional officials promise a significant announcement this Thursday. The region is waiting ...
09/11/98	French Capital magazine, November edition, lists top 1000 richest families in France. In the top 10 of Cognac region, we found Hédiard-Dubreuil of Rémy Cointreau, Jean-Paul Camus of Cognac Camus, Pierre Cointreau of Rémy Cointreau, family Larsen of Cognac Larsen, Bernard Cordier of Seguin Moreau. It is important to note that number of selected people objected to this classification. In addition, many people who are influential in the region live outside and are listed in their domicile regions instead (i.e. Bernard Arnault of LVMH, parent of Cognac Hennessy). All in all, such lists have purely "Hollywood" entertainment value and bring to question invasion of privacy laws. (Capital 11/98, Torula News)
07/11/98	Frustrated by lack of concrete actions, viticulteurs from the Cognac region go back onto the street next Monday (9/11/98) in Cognac and Saintes to protest lack of action by the respected levels of governments. While pork farmers received a substantial government financial assistance, viticulteurs attend many meetings, shuttle between Paris and the region to no avail. (Torula News)
06/11/98	Didier Roy and Sébastien Julliard of IREO in Richemont Chevres started new Tasting Club "Bruits d'bouchon". At its inaugural session 4 wines were tasted by the 14 initial members, among the wines were an interesting, biological rosé from Jacques Brard-Blanchard. For more on the Club and its program check www.swfrance.com next week. (Torula News)
06/11/98	Seagram, parent of Cognac Martell, reported that its spirits and wine group earnings dropped 24% while the entertainment group's earnings rose 13% in the latest quarter. Final tender offer for Polygram, at an earlier agreed price, will proceed with conclusion expected by mid-December. Drop in earnings at the spirits and wine group was attributed to the market conditions in Asia. (FT 5/11/98, Torula News)
05/11/98	Winners of the 10th Tastings of Poitou-Charentes products were announced today. Otard, Forgeron, Bisquit, Lafragette dominated Cognac category, Gérard Simonnot dominated Pineau des Charentes and Jacques Brard-Blanchard Vins pays Charentais categories. For detail results click here. (Charente Libre 5/11/98)
05/11/98	Aftermath of the US mid-term election might be felt in the Cognac region in the future and it has nothing to do with the Lewinski affair. American voters in 18 precincts in Chicago, Illinois voted to ban the sale of alcohol in their neighborhoods. For detail analysis of this local issue that might spread across the nation, check The Chicago Tribune. Nearly 20% of Chicago precincts are dry or partially dry and within the next 30 days, businesses that must stop selling liquor will be notified. In addition, the next Chicago vote is on the 23 February '99. Will more precincts join in going dry? Is this the beginning of a nationwide trend? Or just bad memory of prohibition days in the City of Chicago? (FT, Chicago Tribune Online, Torula News)
04/11/98	Les Cognacs Ragnaud-Sabourin introduce new product, Cognac Ragnaud-Sabourin XO, in classy carafe package with a well balanced 25 year old Grande Champagne at an amazing attractive price of 470 FRF. Available immidiately.
04/11/98	Rémy Platinum, a mix of Cognac and Vodka, claims its first victim. Jean-Yves Malcuit, Director General of Rémy Martin and marketing person responsible for the product resigned last week. (Charente Libre 4/11/98)
03/11/98	Atlanpack' packaging day in Cognac was well received with a new emphasis on the labeling of products. Direct and Internet selling is a very much visual sell thus the new emphasis on labeling is well justified.
03/11/98	Le Cognac en Fêtes ! takes Paris by storm at the Gare Montparnasse since its 31/10/98 debut and will continue till 8/11. Brilliant idea of Pascal Millasseau of the Bouilleurs de cru des Charentes and its 400 participating members with strong participation of BNIC was well executed and it generates about 3000 visitors per day. Its follow up days in the Cognac region (19-20 and 26-27 December 1998) should see many visitors to Montparnasse exhibit (alambic courtesy of Prulho Company) coming to the region. All visitors who talked to the Torula News had one single comment: "Well, its the first time that I realize that Cognac can be drank in many different ways and it is still produced by our craftsmen. It is definitely worth a visit to the Cognac region" Lots of media provided good coverage and many dignitaries and politicians attended the official opening sponsored by the BNIC. What was missing was the ability to taste for legal reasons. At the same time, Bar du Monde (next to the exhibit) offered only Paul Monier VS, Hennessy Cognacs were available at the La Porte Oceanne (restaurant next to the exhibit) and the nearby Hippopotamus offered Cognac Croizet VSOP. We are sure that an arrangement good have been made for small tastings at the Bar du Monde, at least. And now, we would like to see the same in London Victoria, Berlin Hauptbanhof, Brussels Midi, Stockholm Central and New York Central Station. Job well done!
03/11/98	20,576 Internet users visited www.swfrance.com in October 1998. Check the stats!
03/11/98	Science makes progress as seen by the latest bio-technology effort in the USA where a Vin Aromatise Chardonay was created by manipulation of molecules. Will the Cognac or Armagnac be next?
03/11/98	New group of 1998 graduates of the Université Internationale des Eaux-de-Vie et Boissons Spiritueuses received their diplomas at a ceremony in Segonzac. Cognac Martell contributed awards for each graduate and Cognac Gautier, Château de Didonne, BNIC, La Cognatheque/Cognac On-line and Comite National des Pineau des Charentes were among many which provided apprenticeship for the graduates.
02/11/98	BNIC readies its web site for December '98 debut (www.bnic.fr). All eyes and ears are focused on it with expectations running high.
01/11/98	2nd edition of La Nuit du Cognac doubled the attendance to over 800 people with a significant increase in over-30 age group. Nearly 40 Cognac producers donated their products making it one of the best local promotions in years. Bravo Pierre and his team!
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 last years 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.