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Cognac, December 23 , 1997 Thanks to the kindness of Sud-Ouest newspaper, we have been able to reprint an interview given by Mr. Bernard Arnault, C.E.O. of L.V.M.H. (Moët Hennessy Louis Vuitton). Sud-Ouest.- What is your objective regarding the cognac activity while all markets around the world (except for the U.S.) have a tendency to stagnate? Bernard Arnault.- It isn't true that the American market is the only growing one. Others are opening up to cognac. Latin America, for example, but also Poland, Russia... And other markets such as India will follow. Our main objective is to pursue the development of cognac as a luxury spirit. S.O.- What future do you foresee while facing a growing competition of other alcohol and spirits, the first one being whisky? B.A.- Cognac only represents 2% of spirits sold worldwide. It is true that competition is extremely severe with other spirits. It is a risk as well as an opportunity. A risk for brands who do not have an international distribution network, nor stocks of the best brandies, and who survive because of their past success. An opportunity for those, such as Hennessy who agree to call themselves into question and who innovate by designing new products, by suggesting new means of consumption and by reaching out to new consumers. With this will to win, cognac has a great future. S.O.- Does cognac remain a prestigious alcohol or does its future lie on a more American way of drinking it, as a cocktail for example?: B.A.- It is the client who decides whether it is a prestigious product, depending on its quality, its creativity, its price, and the pleasure it brings by offering it or owning it.. And as for cognac, by drinking it. In the world of spirits, cognac does answer these criteria. But in order to remain a prestigious spirit, it requires to fulfill the new demands of our clients, to anticipate the changes in drinking habits and tastes. This is what Hennessy is willing to achieve in the U.S. and in Asia. S.O.- Isn't the luxury image of your group endangered by this American market where your company is number one? B.A.- Today, the American market is the first market for Hennessy. One out of two cognac bottles sold in the U.S. is a Hennessy bottle. It is a great motivation to pursue the rejuvenation effort of the brand that has been engaged locally since many years. The launching of "Hennessy Martini" is here to prove it.
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