Cognac sales jump 31 per cent as drinkers go upmarket
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Cognac sales surged by nearly a third last year as American and Chinese drinkers guzzled old vintages, in the latest sign premium drinks makers are putting the pandemic behind them.
Sales of the brandy, produced in the Cognac region of France, rose by almost 31 percent in value to €3.6 billion (US$4.1 billion), industry group BNIC said on Monday.
Volumes were up 16 percent to 223.2 million bottles.
“This growth reflects a real recovery of cognac, as well as new consumption habits,” BNIC said in a statement, noting sales had also risen compared with 2019, before the pandemic struck.
The outlook should remain positive in the coming months for all destinations, BNIC added.
The news comes after France’s champagne industry said last month it expected record sales in 2021, and follows strong results from several spirits companies.
Cognac sales to its largest market, the United States, climbed 11 percent, with 115 million bottles shipped in 2021.
Sales to China, its second-biggest, leapt 56 percent with 34 million bottles shipped, while European sales were up 8 percent to reach 37.1 million bottles.
In late November, 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, the United States, and Europe.
Pernod Ricard, which owns Martell cognac, also pointed to a jump in sales in China.
The 2021 harvest, at 867,312 hectolitres, was within the 10-year average and should support further growth for the sector, BNIC said.
Questions & Answers
Q.Which specific markets drove the increase in Cognac sales last year?
Which specific markets drove the increase in Cognac sales last year?
Sales to the United States rose by 11 percent with 115 million bottles shipped. China saw a 56 percent leap with 34 million bottles, and European sales were up 8 percent to 37.1 million bottles.
Q.What was the total value and volume of Cognac sales in the last year?
What was the total value and volume of Cognac sales in the last year?
Cognac sales increased by almost 31 percent in value, reaching €3.6 billion. The volume of sales was up 16 percent, totalling 223.2 million bottles.
Q.How does this recent sales performance compare to the period before the pandemic?
How does this recent sales performance compare to the period before the pandemic?
BNIC stated that sales had also risen compared with 2019, indicating that the industry has not only recovered but is performing better than before the pandemic struck.
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