Despite growing fears reported in the media over the past weeks of a worry that the ‘golden age of cognac’ might be drawing to an end, the largest cognac houses have announced increased buying prices of raw materials to ensure supplies.
Hennessy, number one when it comes to production and exports, and with big plans to further increase output, has announced that it’s raised its purchase price of eaux-de-vie from the Fins Bois region by 10 per cent. In monetary terms, this means growers in this area can expect to sell each hectolitre of pure alcohol for around €1000.
In an announcement made by Bernard Peillon, president of Hennessy, and cellar master, Yann Filloux, not only have upped the price by 10 per cent, but also the quantity they purchase from this area by the same amount.
Of course, one cognac house with such major purchasing power as Hennessy can’t fail to have an impact on everyone else. Courvoisier have announced an increase of 12 per cent per hectolitre (to 970 euros), and Remy Martin an increase of 3.75 per cent immediately, with an additional price to be paid in two years time.
And this, whilst of course is good news to the growers, might not be quite so positive to consumers. In fact, in his speech, Pellion said that while this is “a sign of confidence in their partners,” he warned that the consumers can not be reasonably be expected to suffer too many price increases.
This year’s harvest is looking to be around 20 per cent lower than the maximum quantity set by the BNIC. And with the worldwide consumption of cognacs continuing to grow in demand, this could certainly mean the likelihood of price increases in the future.