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Cognac fights downturn to post ‘high’ sales
By Amy HopkinsCognac sales in 2013 were “reassuringly high” despite a slowdown in the Chinese market, according to new figures released by the Bureau National Interprofessionnel du Cognac (BNIC).
The BNIC has announced Cognac sales were “reassuringly high” in 2013, despite continuing difficulties in ChinaWhile shipment volume of the spirit fell 4% to 13.4 million cases, sales value rose 0.2% to €2.4 billion.
Over recent months, some Cognac producers have announced a dip in their profits, largely attributed to the Chinese Government’s crackdown on luxury spending and gifting which has resulted in a decline in the Cognac and high-end Scotch market for the country.
Cognac exports to the Far East were found to have declined 10% by volume to 56 million bottles and 4% by value to €1.1 billion. Despite this, the BNIC described the region as the “the most important export market for Cognac in terms of volume and value”.
For Europe, volume shipments also dipped 5.3% to 43 million bottles – a total worth of €492 million
However, a worldwide trend of premiumisation and a boom in the US market meant that global Cognac sales were reported as “reassuringly high”.
North American shipments were up 2.1% to 53 million bottles, with value increasing 5.3% to €651 million, while Africa was described as a “key continent for growth”, with exports up by 26.7%.
In 2012, the global Cognac scene looked markedly different, with the BNIC reporting record figures for the spirit due to soaring demand in China.
Rémy Martin, however, has announced a 18.3% decline in organic sales for the first nine months of the year, warning that China’s “campaign to promote morality” will continue to adversely affect sales of ultra-premium spirits in the Chinese New Year.
For a more comprehensive view of the market and to see which brands are predicted to prosper in the year ahead, take a look at our Cognac and brandy brands to watch in 2014.