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Cognac holds strong in the difficult economy, trends remain good on the US market,'Vive la France' says London while Cognac welcomes back Martell's marketing team! - Simon PALMER, February 2002

Markets Launches/Events/Infos Communication Viticulture

Markets Last September's dramatic events provoked fears for the American market as well as for airport and travel related sales. The U.S.A. represents close to 40% of the total volume of Cognac sold in bottles, some 40 million in 2000. BNIC statistics on shipments do show a slow-down in the final quarter but this was in the first two months and the situation was reversed in December with +10% compared to 2000. The end result for 2001 was a 2.9% increase. This information is confirmed by Hennessy, market leader with nearly 50% of total volumes. In a LVMH statement on the group's final quarter results the month of December 2001 is equal with the previous year and this despite a drop of 6% in October. The travel related sector is in difficulty but the US domestic market remains strong and contributed significantly to the 6% increase in global Cognac volumes in 2001. Launches/Events/Infos Recent weeks have seen several changes in the industry. After a long wait Pernod-Ricard's takeover of Martell was finally authorised. Patrick Ricard came to meet the company's management in person and he indicated that his group held high ambitions for their Cognac branch. Martell and Renault-Bisquit sell around 1.4 million cases today, this places them a long way behind Hennessy with whom Martell vied in the not too distant past. The marketing department, shifted to London during the Seagram's period, will come back to Cognac and Lionel Breton, the new CEO will also be based there. Cognac Hardy, under the control of KCP since early 2000 following a court decision against the previous acquirer, the Burgundian company Boisset, has been sold to H. Mounier S.A., a branch of the co-operative Unicoop. The combined turnover of the two companies is around € 60 m. Communication The "Association des Bouilleurs de Cru" organised its traditional distillery open-door weekends throughout December. A delegation went to London, alongside the B.N.I.C. who were in turn supported by several brands, to participate in "Vive la France", a fair held at the Olympia venue. They came back enthused by the contacts made with the British public present in number at the 3 day event. < Viticulture A new aid programme aimed at the problem of vineyard restructuring was announced on January 17th. Alongside European Union funds the French national and regional (Poitou-Charentes) governments have voted substantial packages designed to remove or convert 10,000 hectares over the next five years (2006). The goal is to help stabilise the market for wines destined for distillation where over-production is chronic. Late January the 1100 electors on the roles will choose 275 delegates from among 300 candidates who will in turn designate the 33 members of the management of the "Syndicat Général des Vignerons". The elections are the first since the union was created in the hope of uniting the grape-growers. Our previous news Around the world with Cognac Amateurs More Cognac news I wish to subscribe to Cognac Alert. Professionals : Receive targeted information related to Cognac trade and markets.