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World Spirits Report 2024: Cognac & brandy

In last year’s World Spirits Report, we said it had “been a difficult 12 months for Cognac”. Little did we know the challenges that 2024 would bring.

Glass of Cognac and grapes
Cognac is one of very few categories expected to decline in sales this year

Starting the year with a thump, on 5 January, China’s ministry of commerce announced it was launching an anti-dumping investigation into all brandy imported from the European Union, with tariffs averaging 34.8% introduced from 8 October.

It’s too early to analyse the effects of these tariffs, but Rémy Cointreau has already told its investors it would raise Cognac prices in China accordingly. Meanwhile, Hennessy had planned to trial bottling its VSOP in China to circumvent the tariffs, prompting strike action, but this move was swiftly dropped.

For Augustin Depardon, managing director of the newly formed House of Cognac & Champagne at Campari Group, which acquired Courvoisier at the end of 2023, the challenges are merely short-term ones: “Cognac holds a unique cultural legacy, and offers an irreplaceable appeal in the world of spirits. Despite recent challenges, consumer interest in premium luxury drinking experiences, heritage and quality continues to fuel demand for Cognac.”

He says Courvoisier is focusing on additional drinking occasions, extending Cognac’s presence outside of its traditional “night-time moments”.

Euromonitor International is anticipating these issues will affect Cognac sales, however, with volume sales predicted to fall from 13.9 million nine-litre cases globally in 2023 to 13.1m cases in 2024, and to 12.7m cases in 2025. Value is also expected to drop, from US$23.8 billion in 2023 to US$23.1bn in 2024.

It’s a more positive story for brandy, with Euromonitor predicting sales will rise from 165.7m cases in 2023 to 170.6m cases in 2024. Simon Wright, founder of English brandy Burnt Faith, says there has been a lot of noise coming from the sector this year.

“A lot of the narrative around brandy was completely dominated by the big four Cognac houses,” he explains. “Now you’re seeing consumers looking at options outside the traditional brands, with new brands like us and Seven Tails, as well as other brands from Europe, starting to grow.”

He thinks the sector is catching up with other categories by using a “similar language”, with the most forward-thinking brandy brands advertising their different ageing techniques and finishes, something more commonly seen in the whisky sector.

For 2025, Wright thinks accessibility is key to brandy’s success. “Brandy should look to open itself up to more consumers and different occasions,” he explains. One way he thinks this could be done is through ready-to-drink (RTD) serves – which Burnt Faith is working on. Not only do RTDs open up the category to more occasions, “it’s about taking the price barrier down, because that’s always been a big issue with brandy”.


Brands to watch in 2025

Courvoisier

Courvoisier Cognac VSOP

Campari’s acquisition of Courvoisier was one of the biggest spirits news stories of 2024, but little has happened since. However, in October, Maison Courvoisier in Jarnac reopened after a multi-year restoration. Campari Group has also restructured its divisions to include the House of Cognac & Champagne – which will hopefully give the Cognac a positive push.

Seven Tails

 

Seven Tails brandy

Brandy doesn’t necessarily have the coolest reputation, but Seven Tails hopes to change that. Daniel and Joe Schofield of Schofield’s Bar in Manchester, UK, are now investors, and former Atlantic Records vice-president Austin Daboh recently came on board as an advisor. With a big on-trade focus, Seven Tails could help introduce brandy to new drinkers.

Bardinet

Bardinet brandy

Another brandy hoping to shake up the category’s image – while not alienating its core audience – is La Martiniquaise-Bardinet-owned Bardinet. Recent innovations include a ready-to-drink Bardinet Brandy and Ginger Ale, and the Inspirations range, which is designed for mixing – both great ways to recruit new brandy drinkers.

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