1,584 billion Euros of revenue. 140 million bottles of Cognac sold in the last 12 months: Cognac is back in business. Luxury goods are slowly coming back to life. The crisis is over. But is that really true?
Yesterday the BNIC published a press release communicating a growth in May 2010 of 20,7 % and in the last 12 months +5,7%. Yes, that is remarkable. But why?
If we have a closer look at those figures, we see of course that the Far East is at +13%, Northern America +8% and Taiwan… +142%! Now wait a moment, what is happening over there? Keep in mind that Taiwan and Singapore resell Cognac to Asia – they do not drink it all on their own.
The most interesting part of the communiqué is probably the figures of good old Europe. Here, Cognac sales decline by 5,6%.
All Cognac qualities are concerned by this general fresh wave: VS 5,2% (69 million bottles in the past 12 months), VSOP 5,9% (55,1 million bottles in the past 12 months) and XO by 7,1% which represents 17,1 million bottles.
Interesting enough, that the older and more expensive qualities go up by 7,1%.. apparently the emerging markets of China and Asia in general are already back on the road to a stable economy.. while we here in Europe struggle with the Euro.
But the people living and working in the region of Cognac should be more or less happy: they recorded a revenue boost of +6,7%, making up a total revenue of 1,6 billion Euros. To put it in context: In the same time period 2008-2009, the Cognac industry had a total revenue of 1,5 billion Euros.
Even when we here in Europe struggle with our markets in general, the weak Euro pushes export businesses like hell: For a good reason Germany benefits a lot from this situation – but also French Cognac, as the 2nd biggest export product of La Grande Nation.
Still to see how the situation will continue.. probably also quite dangerous to rely on that trend.
Source: BNIC, Sudouest