Cognac houses must stick to brand DNA in China

Hine’s CEO claims the key to facilitating growth in China will be a focus on brand DNA and insists he “will not develop a specific taste for the Chinese” to drive sales.

Hine’s CEO Francois Le Grelle is optimistic about the future of Cognac in China

Speaking to The Spirits Business, Hine CEO Francois Le Grelle said Cognac producers must re-lay solid foundations and avoid being perceived as “a commodity with a short-term profile” if the category is to recover following the Chinese government’s anti-corruption campaign.

Since the implementation of the austerity measures were brought into effect, Cognac sales have plummeted with exports in the Far East declining 17.4% in volume and 21.6% in value in 2014, according to figures from the Bureau National Interprofessionel du Cognac (BNIC).

Speaking to The Spirits Business, Hine CEO Francois Le Grelle said the key to success will be educating consumers on exactly what Cognac is and the brand’s “DNA”.

“In order to rebuild our brand, we have to start slowly and proficiently,” Francois Le Grelle, CEO of Hine, told The Spirits Business. “It will require a lot of work from the brand; we will have to adapt our sales strategy and we will spend more and more time training our team on how to educate people to ensure they understand exactly what Hine is.

“Over the next two or three years, we will have to re-establish our roots; we have to avoid being seen as a commodity with a short-term profile; something that will disappear.

“I am Hine, so I have to stay Hine – I will not develop a specific taste for the Chinese. It would be crazy to change my brand DNA.”

No regrets

Le Grelle insists, however, that he has no regrets about approaching the Chinese market before the crackdown on corruption, citing the mistake would have been Hine’s absence from the market.

“The mistake for me would have been if we were not in China before the anti-corruption campaign,” he said. “Having Hine on the shelf – even if we have to rebuild the brand and reorganise the distribution team – means it is known, even if it is on a small level.

“For a new brand to come in now and start from scratch – that will be hard.”