Asian demand drives soaring Cognac exports

Asia’s insatiable taste for Cognac has continued to drive the luxury spirit’s global export growth, with volume up 3.2% during 2012.

Cognac producers are rushing to meet soaring global demand for the luxury spirit

Exports of Cognac to Singapore, China, Hong Kong, Malaysia and Taiwan increased by 7.5% in volume during the year – a total of 62.6 million bottles.

Demand is also showing no signs of slowing, with like-for-like growth up 12.1% in January and February of this year already.

The figures, released by the Bureau National Interprofessionnel du Cognac (BNIC), also show significant growth for the VSOP blend in particular.

The blend achieved the highest growth within the Cognac category, up 3.8% in volume and 13.1% in value since the beginning of the year.

While growth remained strong in Asia, exports to Europe were down 2.9%. The value of those exports however was up 6.4%, demonstrating a consumer tendency to trade up within the category. Volume to the US was also up 2.8%, with value up 13.6%.

The growth figures come as several of the world’s largest Cognac producers increase their market share through acquisitions.

In December 2012 Remy Cointreau announced the buyout of Cognac Larsen, an independent producer of AOC Cognac with an extensive range of aged eaux-de-vie.

Meanwhile, Pernod Ricard announced in February 2013 it would purchase Le Maine au Bois SAS, including both its stock and distillery, which is expected to help bolster its Martell portfolio, the third largest Cognac brand in the world.

In its 2011/12 full-year sales announcement in August 2012, Pernod Ricard reported a sales increase of 25% for the Martell brand for the period, helping the group achieve its highest sales growth since the recession began in 2008.