With a burgeoning desire for cognac, two of the largest players in the market are putting plans into place to ensure they can keep up with the ever increasing global demand.
Hennessy’s Second Bottling Site
A successful acquisition of a 30 hectare plot on the outskirts of Cognac means that plans for an additional bottling plant for Hennessy is now set to be put into action. With the aim to increase the annual amount of cases (each containing 12 bottles) produced from 5 million to 10 million by the years 2025/2030, the only stalling point was the size of the house’s existing facilities in Cognac.
This purchase of additional land means that the creation of the new bottling plant is now set to go ahead, with a scheduled opening date of 2016-2017. This is in addition to their new, state of the art automated packaging line that we reported about at the end of last year.
Hennessy has also announced that they are investing substantially into increasing their storage facilities as well.
Remy Martin Invests Heavily in Production Capacity
Not to be outdone, Remy Martin has announced that they are investing a further 30 million Euros into its production site at Merpins, with the aim of increasing their manufacturing capacity by 30 per cent over the next five years.
The expansion of the site will see it grow from 16,500 square metres to 20,700, and will include the construction of a new winery. By autumn of this year, brand new production lines will have been installed. By upgrading to the latest technology, this means that the cognac house will have less production lines than before, reducing from 12 to 10, but each will be far more efficient and able to work on multiple formats of bottles and carafes. This in turn will increase the output.
Another advantage to this is that the upgrades will create a further 15 jobs, meaning Remy Martin will have taken on an additional 55 workers in the past two years.
Another exciting development for Remy is the move into distributing their cognacs in the country of Belarus. A one year distributor contract has been signed with the Belarus’ group Garsia (Belvingroup) to distribute and build brand awareness in the country. The first year will be to export 45,000 bottles of cognac to cafes, bars and restaurants, as well as to wholesale and retail trade. This will also include some bottles of the prestigious Remy Martin Louis XIII.
Sources: just-drinks.com, uisinenouvelle.com, news.belta.by