BROWN SPIRITS: COGNAC/ARMAGNAC


category seeing relatively flat volume sales offset by value growth.” Value growth is certainly good


news for a company producing rare and fine Cognac, such as Rémy Martin, which is famed for its super high-end Louis XIII Cognac. Targeting affluent Asian travellers,


Rémy recently introduced its Louis XIII Smart Decanter technology into travel retail through Oceania, in partnership with Heinemann. Heinemann was the first travel retailer in the Oceania region to launch the new coffret, in conjunction with the Louis XIII pop-up at Sydney Airport International Departures. This concluded in November, just prior to the outbreak of Covid-19 in China’s Hubei Province.


Armagnac trends While Cognac’s value sales appeared to be stable in 2018, the narrative will most certainly change for Q4 2019 and 2020 in the context of Covid-19. We asked Newman what might be in store for Cognac’s close relative; Armagnac. “The Armagnac segment is less


developed than Cognac and may have more potential for expansion, but Armagnac brands may have to take shelf space from Cognac to boost their presence.” Historically Armagnac and Cognac


trends have been aligned, says Kathleen Gentzbourger, President and Owner of Chabot Armagnac (and distributor, MG Cellars). “Yet due to our niche positioning we are never considered overexposed. We remain the brand to discover with a unique story of artisanal production, single distillation, and scarcity.” When asked how the company is


responding to the virus outbreak, Gentzbourger said: “MG Cellars Ltd’s priority is to make sure our employees, partners, and friends in the industry remain safe. We implemented flexible working options for our employees and like everyone else we keep monitoring the situation closely. “It is the right time to reflect


on existing practices and see how we can improve so we are well prepared when consumers start to travel again.” TRBusiness


MARCH 2020


Gentzbourger on the importance of raising Chabot’s exposure and footprint in regions outside of Hong Kong and China during this challenging time. “It always has been our strategy


to expand Chabot’s footprint more globally…we have already increased our presence in North America (New Jersey, Chicago, Las Vegas, Seattle), Russia and Europe. These will be key regions for growth in the coming years.”


New opportunities in cruise Speaking of new opportunities outside of its traditional markets, Gentzbourger reveals that the company took a decision last year to more ‘intensely’ target the cruise market, “because the passenger demographic is perfect for our Chabot Armagnac brand”, she insists. “Previously, that demographic


was relatively narrow, dominated by retiree travellers, but that is changing fast. “Travellers across a wide age-


range are now taking cruises and many of the consumers that are our ideal targets are now investing in this form of leisure travel. “The upmarket retail spaces


onboard the big cruise liners have a lot of potential for us, as consumers will have more time to take make


“It always has been our strategy to expand Chabot’s footprint more globally…we have already increased our presence in North America (New Jersey, Chicago, Las Vegas, Seattle), Russia and Europe. These will be key regions for growth in the coming years.”


Kathleen Gentzbourger, President and Owner, Chabot Armagnac


informed decisions on luxury brown spirits purchases.” The company’s discussions with


various cruise lines are ‘ongoing’, but Gentzbourger says she is hopeful of making some official announcements regarding the cruise sector later this year. Other developments for the


company include the introduction of new marketing tools and a new ‘premium product’ to be launched in the fourth quarter of this year, drawing on its heritage and traditions, yet more relevant to the ‘modern consumer’. “The details are currently a closely-


guarded secret, but those of us in the know are hugely excited about what we can achieve with it.” «


also pressed


Rémy Martin recently launched its Louis XIII Smart Decanter in Australia with Gebr. Heinemann.


TRBUSINESS 65


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