NEWS
COGNAC SALES HIT ALL-TIME-HIGH IN 2021 THANKS TO GROWTH IN CHINA AND USA
By Siulan Law Mathews DipWSET
25-1-2022
Source: BNIC
Cognac sales surged by 31 percent in value in 2021 topping Euros 3.6 billion (USD4.1 billion), thanks to strong performances in China and USA.
By volume, sales were up 16 percent to an “all-time-high” of 223.2 million bottles.
According to data released by Cognac industry group Bureau National Interprofessionnel du Cognac (BNIC), sales to its second largest market China jumped 56 percent last year, with 34 million bottles shipped.
Cognac sales to its largest market in USA climbed 11 percent, with 115 million bottles shipped in 2021, while European sales were up 8 percent, to 37.1 million bottles.
The BNIC said 2021 harvest in Cognac - a French appellation for brandy production – was 867,312 hectolitres which is within the 10-year average and should support further growth for the sector.
President of BNIC, Christophe Veral, is very optimistic about the future of Cognac and predicted sales to exceed the 350 million bottle mark by 2035.
“Cognac continues to show a very strong sales momentum, 2021 shipments posted very good results. The value performance stems from the relative growth of mature Cognac and good price points in buoyant markets. Demand for Cognac has never been as strong as it was last year. Despite the uncertainties due to weather conditions, the 2021 harvest will enable us to sustain growth, while all the available data is leading us to be reasonably optimistic for 2022,” Veral told French media Vitisphere.
“Currently, there is an all-time high in demand for Cognac across markets. New buying habits were confirmed during the Covid crisis and are favourable to us,” Veral said.
“The industry has indeed never before sold as much Cognac. Twenty years ago, we shipped 117 million bottles per year worldwide - now we are close to 230 million, and we plan to exceed the 350 million bottle mark by 2035,” he added.
In late November 2021, spirits group Remy Cointreau raised its full-year profit forecast after a better-than-expected first half, driven by strong demand for its premium Cognac in China, USA and Europe.
Pernod Ricard, which owns the Martell Cognac brand, also pointed to a jump in sales in China.
(the writer can be contacted at: info@thewinechronicle.com)
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