China is well! While everywhere else the Cognac market is going down just like the luxury market is going down… in China it isn’t!

China is well!

Whisky, vodka and rum sales keep rising in China. As the middle and upper classes develop more and more in this country, the demand for foreign products is rising. The king of nightlife in China is Cognac – as it has an image of “prestige”.  It’s all about the brand, the values the product transports and at the end of the day it’s a status symbol. Not only being extremely expensive, Cognac is foreign and from a faraway culture – basically Western and therefore exotic.

What’s more, China is the third biggest export market for Cognac after the US and Singapore. The Bureau national interprofessionnel du Cognac (BNIC) reports a slight -1,2% in sales.

So basically, no Cognac crisis in China?

Rémy Martin, Hennessy and Martell are benefiting: Pernord Ricard, for instance, launched a bottle called “L’Or de Martell” last year… only for the Chinese market and at a price of 3.600 USD per bottle!

L'Or de Martell, for Chinese market

The Chinese economy will probably grow by an annual 8% until 2015. Spirits company Diageo expects the market for high end white spirits to increase by 10% in sales and 5% in volumes. The market would be worth USD 5,4 billion by 2015. This is huge. Diageo is trying to catch up with Pernod Ricard (Martell), which is China’s biggest foreign spirits producer… The popularity of Cognac is simply very present. Diageo also runs a 50% joint venture with Moët Hennessy, which produces Hennessy Cognac.

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Max is a spirits expert and speaker, into marketing, technology, startups, and business development. He’s also a farmer. He likes tools and machines, Game of Thrones, and Better Call Saul. Included in his Top 10 Cognacs are the Audry XO and Bache Gabrielsen 1973.Max founded Cognac Expert in 2010 at his family’s estate in Poullignac, in the Cognac region, France. Started as a blog, today Cognac Expert is the world’s largest website about all things Cognac, a blog, and a specialized online shop featuring 800+ different Cognac bottles.

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