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Summary of our market study
The world cognac market is worth over $5.5 billion. The value of French exports exceeds €3.7 billion.
The Cognac market slowed down in 2020 due to the COVID-19 crisis, with a drop of 11.3% in volume and 22.3% in value, but recovered strongly in 2021.
Cognac production remains geographically limited by AOC regulations in certain French regions.
French cognac market French cognac market
98% of production is exported. Cognac accounts for 75% of French spirits exports, although it represents just over 32% by volume.
The United States and China are major consumers, with the former buying between 110 and 120 million bottles and the latter over 50 million bottles.
Cognac consumption in France represents less than 5% of its total market.
The French largely associate cognac with the professional world, whereas its image in the United States is much more fashionable, often in bars and nightclubs. In China, cognac is particularly prized at social, celebratory and prestige events.
The sector is highly concentrated, with four major conglomerates - Hennessy, Rémy Martin, Martell and Courvoisier - dominating the global market with a combined share of 80%. However, there are many players in the market, including some 4,300 winegrowers and various trading houses and professional distillers.
Cognac market players
- Hennessy from LVMH
- Rémy Martin: the pinnacle of Champagne cognac. The Louis XIII brand is the most prestigious in the sector
- Martell by Pernod-Ricard: Martell is one of the oldest cognac houses
- Courvoisier is now part of the Fortune Brands group.
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Summary and extracts
1 Market overview
1.1 Presentation and delimitation
Cognac is produced in an appellation d'origine contrôlée (AOC) area, delimited by decree in 1909. The vineyards dedicated to the production of six different crus cover 75,000 hectares, extending over Charente-Maritime, a large part of Charente, and a few communes in Dordogne and Deux-Sèvres. This eau-de-vie belongs to the category of wines and spirits, and is consumed as an aperitif or digestif in France.
The cognac market in France is concentrated, with a small number of players. Alongside the major houses, these players include winegrowers, trading houses, cooperatives and distillers, both professional and "de cru".
For industry players, the cognac market represents steadily rising sales, with average annual growth of 7.6% between 2015 and 2019. The market declined in 2020 due to the health crisis, but will return to pre-crisis levels by 2021.
Most French production is exported internationally (notably to the United States, China and Singapore).
The market is highly concentrated, with four companies sharing 80% of the global market (Henessy with LVMH, Rémy Martin with Rémy Cointreau, Martell with Pernod-Ricard, Courvoisier with Fortune Brands). But competition is increasingly fierce on international markets, and other types of brandy, such as armagnac and calvados, are also trying to export to the USA and Asia.
The low consumption in France can be explained in part by the way people view cognac: a drink consumed mainly in the business world. In the United States, cognac enjoys a more "trendy" image, and is available in the country's bars and nightclubs.finally, in China, cognac is considered a beverage mainly consumed at social events (receptions) or social gatherings (nightclubs and bars).
The trend is towards "premiumization" of products, with the aim of standing out from the crowd, with bottles of cognac selling at ever-increasing unit prices. In addition, growers are keen to improve their relationship with the environment, for example, by limiting their use of pesticides and/or using new, "greener" cultivation techniques.
List of charts presented in this market study
- Trends in cognac market size
- Breakdown of exports by volume
- Breakdown of exports by value
- Value of cognac exports
- Main cognac-buying countries
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Latest news
Never full of acquisitions, Campari ready to revive Courvoisier cognac - 16/12/2023
- campari, the group that owns the Grand Marnier liqueur and the Aperol aperitif, is negotiating with Japan's Beam Suntory to acquire 100% of its Courvoisier cognac for 1.1 billion euros, i.e. almost 5 times sales (230 million euros by 2022).
- Beam Suntory's strategy is to refocus on its premium whiskies (American bourbons, Japanese whiskies, etc.).
- Campari generates sales of 2.7 billion euros
- Half of the growth in recent years has come from acquisitions: Grand Marnier (2016), Trois Rivières rums (2019), Lallier champagne (2020), Picon liqueur in 2022.
- The Italian group has made seven acquisitions in six years in France
- The United States, Campari's biggest market
- To grow in China, where Campari is weak, you need a cognac
- alongside Martell (Pernod-Ricard), Hennessy (LVMH) and Rémy Martin (Rémy Cointreau), Courvoisier is the fourth-largest player in this Charentais spirit, with a 5% global market share. 50% of its sales are made in China, where the local spirit, baijiu, remains ultra-dominant (97% of the local market by volume).
- Imported cognacs and whiskies have been in vogue for the past decade. Pernod Ricard, Diageo and LVMH take the lion's share.
- In the United States, Campari already generates nearly 30% of its business.
- Aperol leads Campari's sales (25% of sales in the first nine months of 2023).
- Sales of Wild Turkey bourbon, acquired from Pernod Ricard in 2009, have more than tripled.
Campari falls for Courvoisier, venerable Cognac house - 15/12/2023
- Campari is in exclusive negotiations to acquire 100% of Beam Holding France, owner of the Courvoisier premium cognac brand.
- Fixed purchase price: $1.2 billion
- Campari acquired American bourbon producer Wilderness Trail Distillery LLC in 2022
- Campari had also acquired Grand Marnier in 2016, Bisquit Dubouché in 2017, Trois Rivières and La Mauny in 2019, Champagne Lallier in 2020 and Picon in 2022.
- Founded in 1860, Campari is present in over 190 markets with a portfolio of more than fifty brands
Cognac: Rémy Cointreau a victim of the difficult spirits market - 27/10/2023
- Rémy Cointreau U.S. sales down 26.6% in first half
- The group forecasts a drop in annual sales of between 15% and 20%.
Anne Miller (Beam France): "We'll be leading the next sales negotiations" - 08/10/2023
- Beam Suntory is the world's third-largest spirits company.
- Beam Suntory is a leader in three segments: premium whiskies, Japanese whiskies and bourbons.
- The company operates 26 distilleries worldwide, including one in France for the production of Courvoisier cognac.
- Some 6,000 people work for Suntory.
- In 2022, the company achieved sales of around $5.5 billion (€5.22 billion).
- France is the leading market for whiskies in Europe.
- Beam's launch in France comes less than a month before the start of commercial negotiations.
Spirits: Beam Suntory France officially launched - 08/10/2023
- Beam Suntory is the world's 3rd largest spirits company.
- Beam Suntory France will be created in January 2024.
- Beam Suntory France will employ 40 people.
- France is an important market for Beam Suntory, as it is the world's luxury center and Europe's leading whisky market.
- The current distribution agreement between Beam Suntory and Campari ends in 2023.
- Beam Suntory International employs 6,000 people in 30 countries.
- The launch of Beam Suntory France represents a significant expansion of Beam Suntory's presence in Europe.
- Beam Suntory's portfolio in France includes Jim Beam and Maker's Mark bourbons, House of Suntory whiskies and spirits Yamazaki, Hibiki, Hakushu, Toki and Roku, Laphroaig and Bowmore scotch whiskies and Courvoisier cognac.
Campari France to distribute three Proximo Spirits brands - 08/10/2023
- Effective date of agreement: January 1, 2024.
- Players involved: Campari France and the American company Proximo.
- Number of brands involved in distribution: 3 (Bushmills, The Sexton and The Kraken).
- Geographical area covered: mainland France and Monaco.
- Distribution channels involved: GMS (Grande et Moyenne Surface), CHR (Café, Hôtel, Restaurant), wine merchants and E-Commerce.
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