Report: Cognac Sales Rising, Brandy Falling

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Cognac is in again and set to get bigger. That’s the verdict in the Global Cognac & Brandy Insights report from the IWSR and just-drinks. The study predicts that in the wake of a flat period for brandy sales, cognac—especially premium cognac— will experience sustained growth. However, the outlook is a little bleaker for the parent brandy company.

Keeping with greater market trends, North America and China are at the vanguard of the trend. In the People’s Republic, austerity measures are over and Cognac is riding a wave of luxury goods purchases. Key growth regions are centered around key areas of Guangdong and Fujian. The study posits that this popularity has a snowball effect resulting in greater sales across the Pacific due to Chinese ex-pats communities and tourists.

In North America, “new drinkers are joining the category’s core African-American and Asian consumer base” states the report. The researchers also believe that that the success on the continent is now spilling over into the Caribbean and even parts of Africa.

ISWR predicts that the cognac growth will be sustained. The group forecasts in excess of 17 million cases sold annually by the year 2021.

India and the Philippines combined account for over 100 million cases sold annually in the parent brandy category. Those markets are in decline with a drop of 8 million case annual decline in brandy sales. Analysts attribute the shift to increased whiskey, beer, and gin sales.

Although brandy is hurting, there are a few bright spots. Russia and South Africa, both historical brandy drinking countries are showing early signs of an uptick. In the U.S., the craft spirit movement is also contributing to an increase in brandy sales. In Peru, Chile and Bolivia, local specialties like Pisco and Singani are creating premium lines; the higher price tag serves to up the total sales figure.

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