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Vinepair: Boutique Cognac Producers Are Betting on Transparency and Innovation to Shake Up the Status Quo

cognac, Cognac Frapin, Nicolas Palazzi, VinepairNicolas Palazzi

There’s no dichotomy in spirits like Cognac. With a history dating back hundreds of years, the famed French brandy is led by gigantic legacy brands owned by multinational conglomerates. These companies source most of their eau-de-vie from thousands of growers within the Cognac AOC, maturing and eventually blending it into a portfolio of products that start with entry-level V.S. and often extend to limited-edition Hors d’Age (“beyond age”) offerings that can run thousands of dollars a bottle.

Almost all discussion of the category is driven by these leading houses, which tightly control the information they share and work closely with Cognac’s trade group, the BNIC (Bureau National Interprofessionnel du Cognac). Yet they’re curiously reticent about speaking to the press; of four major brands that were approached for this story, only one, Courvoisier, was willing to make someone available for an interview. Nicolas Palazzi, owner of PM Spirits, which imports boutique brand Frapin Cognac among others, calls the industry a “black box” of secrecy.

“There has been a lack of information and a lack of transparency from Cognac in general because it’s easier for business,” he says, explaining that baked-in ambiguity — part of the regulations governing Cognac production — allows blenders to incorporate a variety of liquids into their products without disclosing their ages, or if they use additives. “The less things are transparent, the more a brand can play around to meet the demand. There’s a reason why there’s no vintages on bottles—why no one tells you [the age].”

Though they dominate sales, the big houses aren’t the only players in Cognac. There are also estate distilleries, small-scale négoçiants (independent bottlers), and growers who hold back some of their distillate to sell under their own name. The volumes they produce are but a drop in the barrel, and many operate under the same veil of silence as the rest of the industry — no doubt because they rely on the success of the leaders to buoy the region’s fortunes as well as their own.

But the little guys are becoming an increasingly important factor in the equation of U.S. market sales. The spirits boom of the last two decades has yielded a crop of knowledgeable consumers who are curious, engaged, and on the lookout for unique products. They’re asking questions, demanding transparency, and searching for what’s authentic. Is the Cognac industry prepared to give them what they want?

The New Cognac Consumer

Cognac has been on a tear in the U.S. market over the past two decades, selling 9.28 million cases in 2022, compared to 4.15 million in 2012, and just 3.7 million in 2002, according to the BNIC. The bulk of that growth has come from a handful of brands: HennessyRémy Martin, Courvoisier, Martell, and, more recently, D’Ussé. Luxury positioning, sophisticated marketing, and celebrity affiliations have contributed to this runaway success, as has the sheer volume that these big companies are able to execute as demand ramps up.

Alongside this growth has been an expanding base of engaged, curious consumers. “Knowledge [about Cognac] is much more democratized, distributed — all over the internet,” says Max von Olfers, co-founder of cognac-expert.com, an e-commerce site dedicated to brandy. When he and his sister, Sophie, started the website in 2009, “the big trend was what we would call ‘influencer Cognac’”—brands with celebrity partnerships, like Ludacris with Conjure Cognac or Jay-Z with D’Ussé. “Today’s trends were very far away — not even visible,” Olfers says, mentioning vintages, high proof, organic production methods, and single barrels as some of the buzziest topics his customers are now seeking out and discussing. “This connoisseur-ization of the Cognac world is really what changed in recent years.”

The trend was already underway when the pandemic began in March 2020. For the first few months, spirits purchase patterns tended to favor more established brands as people sought familiarity. But eventually consumers adjusted to virtual tastings and online shopping, and were back to exploring new-to-them brands and products. “Consumers were way more open-minded to spending money on new items in 2020 and 2021, and we definitely benefited from that,” says Guillaume Lamy, managing director for the U.S. arm of Ferrand Cognac, a brand whose releases, which include unique cask finishes and other atypical characteristics, tend to showcase an outsize level of creativity for the category.

During the early days of the pandemic, when people were reluctant to shop in person, retailers like Baytowne Wine & Spirits, in the Rochester suburb of Webster, N.Y., turned to the phone and social media to walk customers through their options. General manager James Pellingra says that the “new normal” allowed him and his staff to highlight the boutique and artisanal offerings the store stocks. “Because we were able to communicate in such a detailed way … you see some of the smaller producers that are extremely historic in the European market start to take over a little bit in the American market,” Pellingra says, citing Fanny Fougerat and Jacky Navarre as two top sellers.

The process was accelerated when Hennessy, which is far and away the largest Cognac brand in the world, fell victim to supply chain trouble and began to temporarily disappear from shelves. Pellingra says that at first Hennessy customers switched to D’Ussé; then, when D’Ussé began experiencing out-of-stocks, they looked to the store’s artisanal offerings.

It was a lucky break for the little guys. “We were able to fill the shelves of some retailers who were used to having the big four or five Cognacs but were not able to get them,” says Christine Cooney, co-owner of Massachusetts-based Heavenly Spirits, which brings in several small Cognac brands including Monnet and Jean Fillioux. “Sometimes the hardest part of us selling smaller producers is to get on the shelf.”

And now that they’re there, Cooney says, her brands are selling well enough to maintain their spot. “They usually stay on the shelf because once people discover how good our small producers are, then the product is being reordered.”

The Push for Transparency

The reasons for this sustained success aren’t hard to spot. Boutique Cognac brands are high quality and, for marques above VSOP, they’re often priced competitively, if not well below mainstream offerings. Plus, they’re willing to share information that the big guys tend to keep under wraps. “I’ve found the littler producers are more open to talking about process,” says David Othenin-Girard, spirits buyer at California retailer K&L Wine Merchants, whose Cognac selection focuses on small-production brands such as Dudognon and Jean Grosperrin. The small brands that Cooney represents often participate in video tastings; education, she says, is a keystone of the company’s strategy.

Though most people drinking Cognac are still seeking the mainstream brands, Baytowne’s Pellingra says that the value proposition of smaller producers is a big draw for retailers. Plus, he adds, “They’re more transparent about where their fruit comes from, the process in which they’re distilling, how they’re aging, rather than some of the bigger brands where everything is kept secret.” That’s a big win with customers. “We want to know where our product comes from, how it’s made, and how it gets to us,” Pellingra says.

Much of that desire for transparency is being driven by whiskey drinkers who are exploring Cognac for the first time, and bringing their expectations and biases with them. Olfers, while including rum drinkers as well, calls them a “new wave,” adding: “This group is a small but very loud group. They are mixing up the Cognac world.” He sees their influence in the growing cadre of private bottlers offering unique barrels and bottlings.

“The story has gotten out: The big houses source from hundreds of growers and producers,” says writer Jason Wilson, who covers Cognac regularly in his newsletter “Everyday Drinking.” “But you’re starting to hear this story that the smaller producers keep a few of the very best barrels for themselves over the years, and now you have these smaller négoçiants that are going out and sourcing barrels from these old-timers,” he says. “That’s what the real spirits enthusiasts want.”

Pellingra’s experience at Baytowne bears this out; customers snap up whatever single-barrel brandies he can bring in — not just Cognac, but Armagnac and Calvados, too. “The American market has finally realized they can buy 20-plus-year-old brandy for a much more reasonable price than 20-plus-year-old whiskey,” Pellingra says. “And it’s much more readily available. … If you go in looking for a bottle of bourbon [at that age] — I mean, most places are going to laugh you out of the store at this point, unfortunately.”

Cooney has seen the same trend in Heavenly Spirits’ portfolio. “We have sold a few Cognac [single] casks at full-proof,” she says. “That kind of Cognac is a draw for whiskey drinkers” because of the high proof — unusual for Cognac, which is almost always bottled at or near 40 percent ABV. For these customers, Cooney says, “the higher, the better.”

Untapped Potential

Let’s be very clear: Small Cognac brands are never going to make up more than a tiny fraction of the massive, and massively successful, Cognac industry. The top five brands make up more than 96 percent of the market, according to Impact Databank, with Hennessy alone accounting for more than 55 percent. These volume leaders may not notice or care that a niche subset of spirits buyers are pursuing boutique offerings, since their success has historically been driven by a different kind of drinker — one who’s often brand-loyal above all else. Still, there are signs that some big brands are trying to reach more hardcore spirits enthusiasts. Courvoisier, for example, released a mizunara cask-aged offering in 2022 that was partly made by Japanese master whisky blender Shinji Fukuyo, clearly targeting whiskey connoisseurs.

But outside of the leading five houses, Cognac producers looking to make a mark in the U.S. would be wise to pay attention to what consumers say they want. “The potential of the category for producers and drinkers has not even begun to be scratched,” says Nima Ansari, spirits buyer at New York’s Astor Wine & Spirits. “A lot of the things that are exciting people in other categories already exist in spades in Cognac, too.”

If they’re going to make a go of it, boutique producers should be prepared to work hard. “The small guy has to do it hardcore,” Palazzi says, meaning: find the right importer and wholesaler partners, put in the time and effort to do consumer and trade tastings, and tell the story constantly. “That stuff is extremely hard. It’s a labor of love. There’s zero money in it.”

But, he says, “if they find a megaphone in the U.S. market, then they can express this and distance themselves from the big guys.” For small Cognac producers trading on their authenticity and transparency, that just might be the best way forward.

https://vinepair.com/articles/boutique-cognac-transparency-innovation/

Barrel Hunting in Cognac: Unearthing Hidden Treasures in Dusty Old Cellars

cognac, Cognac, PM Spirits, Cognac Frapin, L'Encantada, Remi LandierNicolas Palazzi

There’s a popular vision of Cognac that’s all blinged out and dripping: crystal decanters, tasting rooms that look like jewelry stores and five-figure bottlings. This image is dominated by a handful of huge brands everyone recognizes: Hennessy, Martell, Rémy Martin and Courvoisier—the so-called Big Four, which sell nearly 90% of the Cognac consumed worldwide, according to the International Wines and Spirits Record. But there is another side of Cognac, too. One that’s based more on the gritty agricultural reality of the region.

I saw it on a cold, gray day last winter at an unassuming farm in the small village of Verrières. This was probably the last place I’d expect to find pricey Cognac, but I was on a barrel hunt with Guilhem Grosperrin, among the new wave of négociants whose limited-edition releases are quickly becoming the most coveted bottles in Cognac. We visited one of the 150 small producers in his network, where Grosperrin crawls around old cellars looking for rare brandies.

When we arrived at the farm, four barking dogs rushed out to us, followed by a ruddy-faced septuagenarian who was still dressed from his boar hunt earlier in the day. Cognac is a secretive, rivalrous place and I was introduced to the man in hunting attire as only Marcel, no last name. Marcel eyed me suspiciously, then asked, “Well, does he like to drink?” Grosperrin chuckled and told Marcel that, yes, I liked to drink very much. With the ice broken, we stepped into his dark, dusty cellar to taste from his barrels, which had been aging since as early as the 1980s. “Sorry it’s dirty in here. I haven’t distilled since 2012,” Marcel said.

The nonstop luxury messaging from the Big Four makes people forget Cognac’s origin as wine. We sipped liquid from Marcel’s barrels that had begun as grapes in the family’s 10-hectare vineyard, which he picked, pressed, fermented and distilled. It’s a similar story for the roughly 4,300 winegrowers in Cognac, most of whom grow less than 20 hectares specifically for Cognac production. During his career, Marcel sold most of his stock to one Big Four house or another. But he always saved a few special barrels for himself. “What they keep is for pleasure, or patrimony, or as souvenirs, or for reasons that are not necessarily logical,” Grosperrin told me.

By age eight, Marcel was able to light the still, which he did in the morning while his father tended to the cows. Marcel remembers a wealthy neighbor who’d been a prisoner of war in Germany during World War II. That man wrote to his family from prison: “Cut down all the trees if you have to, but don’t stop distilling. Distill, distill, distill.” After the war, this guy’s cellar was full, and he became rich. Meanwhile, Marcel’s family had to rebuild its stocks. “The value of money is just in your head,” he said. “But the value of Cognac is solid, and you don’t lose it.”

To whiskey drinkers, single-cask offerings may seem like old hat. But it’s a relatively new phenomenon in brandy. Cognac is actually following a model that’s already been successful for Armagnac. Single-barrel Armagnac from négociants like L’Encantada are catching the fancy of American whiskey connoisseurs tired of paying whiskey prices. The problem in Armagnac is that the existing stock of barrels is small and shrinking.

That offers an opportunity for Cognac, where there is seemingly endless stock. Though, as Grosperrin points out, “It’s much more complicated to buy a cask here than in Armagnac. In Cognac, the producers are richer, and they don’t need small independent bottlers. They have contracts with the big houses.”

It’s still the early stages for the single-barrel Cognac revolution, and we’re just beginning to see these bottles in the U.S. La Maison du Whiskey’s “Through the Grapevine” series was one of the first to appear. PM Spirits has done several limited-edition bottlings, and this year has released rare single-cask offerings from renowned producers Frapin and Remi Landier. Last spring, Grosperrin released bottlings in the U.S. for the first time in several years. Importer Heavenly Spirits has released two single-barrel bottlings from the famed estate Jean Fillioux. Vallein-Tercinier and Jean-Luc Pasquet have plans to bring more of their single-cask offerings into the States.

To be clear, at the moment, single-barrel Cognac is still the domain of aficionados, with prices running more than $200 per bottle. But they’re still a fraction of something like Rémy Martin Louis XIII or Hennessy Paradis Imperial (both more than $3,000). Much of the price of those blingy brand names is wrapped up in specially designed decanters. The new wave of single-barrel offerings is something rarer and scarcer. “This is for people who want the unexpected. It’s a different philosophy. It’s outside of the current market,” said Vingtier.

https://www.wineenthusiast.com/culture/cognac-barrel-hunting/

20 BEST COGNAC BRANDS YOU NEED TO KNOW

Best of, Cognac, Guillon-PainturaudNicolas Palazzi
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Cognac is the perfect aperitif, it’s rich, complex, aromatic, and ideal for aiding digestion after a delicious, filling meal. It’s also an excellent addition in classic cocktails like a sidecar or as a twist on others like a French 75 or Old Fashioned. The Cognac region, in southwest France, is the only place in the world where it can be produced. Within it, there are six growing regions, known as crus. Strict laws dictate that the specific grape varietals (Ugni Blanc is the most common) must come from here. Plus, producers must also adhere to distillation processes and time and aging protocols to bear the name Cognac. Many Maisons (houses) have been making cognac from these vineyards for hundreds of years. They’ve passed knowledge down from generation to generation, perfecting every drop of the amber liquid that gets bottled.

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20. Guillon Painturaud

Patience is the key ingredient that makes the cognac from Guillon Painturaud so good. It’s a small, family-owned producer, who’s Grande Champagne estate has been in the family since 1610. The youngest offering in their collection of nearly ten styles is the VSOP, which has aged for five years and is bold and balanced, displaying all the unique terroir characteristics. There’s also a Reserve, or XO equivalent, with toasted, vanilla, and spice notes with a deep finish. It ages for ten years. Decades of aging go into the Hors Age, resulting in candied apricot and citrus notes, with touches of wood and chocolate. The oldest in the collection is the Cognac Mémoires, which marks the generational change and transmission of knowledge from grandfather to grandson in 1965. It’s limited and rare but boasts and deep intensity and aromatic complexity.

https/wwwthetrendspotternet/best-cognac-brands

The 16 Best New Spirit Releases Currently on the Market

Cognac, Nicolas Palazzi, PM Spirits, Best ofNicolas Palazzi
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Cognac Hommage a Yves & Jean-Noel Pelletan 

This limited-edition, single-cask cognac (along with a few demijohns) consists of a blend of eaux de vie that was distilled between 1925 and 1965, so this is truly a taste of cognac history. Just 870 bottles were released this past October, and it was named after a father and son cooperage team who hold the title of Maitres Artisans Tonneliers and are important figures in the cognac category. This is truly a legendary spirit that will not reappear.

https://www.departures.com/legend-awards/best-spirits#20

Ten Outstanding Cognacs That You Have Probably Never Heard Of

Best of, Jacky NavarreNicolas Palazzi
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Cognac is one of the world’s great spirits. Its history dates back almost four centuries. Its presence in the U.S. goes back almost as long. It has been intimately intertwined with American history. George Washington was a fan. He drank it in his camp during the Revolutionary War and served it to his guests at the first Presidential Inauguration.

Cognac was the basis of most cocktails in the U.S. long before bourbon became the quintessential American spirit. Cherry Bounce and Fish House Punch, two popular drinks during colonial times, both featured Cognac. The original recipe for that classic American drink, the mint julep, was also Cognac based. The bourbon version did not appear till the late 19th century. The first American book of cocktail recipes The Bartender's Guide, by Jerry Thomas in 1862, mostly featured Cognac based drinks…

…France has hundreds of Cognac producers. The four largest producers, however, account for 90% of the U.S. market—Courvoisier (Beam Suntory), Hennessy (LVMH), Martell (Pernod Ricard) and Rémy Martin (Rémy Cointreau).

Most Cognac producers do not export to the U.S. market. Bottling Cognac to meet U.S. bottling requirements, 750 ml versus 700 ml bottles, is expensive and burdensome. Finding a U.S. distributor is difficult, especially given the relatively small volumes that they produce. That’s a pity, because most Cognac enthusiasts have little opportunity to taste the wide range of Cognacs produced in France.

Recently, I asked Max von Olfers for his recommendations of outstanding Cognacs that are relatively unknown in the U.S. Max, along with his sister Sophie, runs Cognac-Expert.com, a Cognac based mail order supplier of Cognac to consumers worldwide. The website features more than 1,000 Cognac expressions, that’s easily 10 times more than even the best stocked U.S. retailer would carry.

Below are 10 recommendations from Max, plus a couple of my own, of outstanding Cognacs. They range from relatively common, at least in Cognac, to quite rare. Price wise they range from under $100 to over $5,000 a bottle. All bottles are 700 ml. Max’s comments are below (in italics), followed by my comments.

Navarre Cravache d’Or - $110 Cognac Navarre Cravache D'Or

Navarre Cravache d’Or - $110
Cognac Navarre Cravache D'Or

Cognac Navarre Cravache D'Or

I love this cask strength Cognac. Non-chill filtered, not colored or boiséd. No water is used during the aging process, and all the grapes are hand-harvested—this is the ultimate in artisan production. This Cognac explodes with aroma and has an evolving floral palate that’s so typical of a Grande Champagne eau-de-vie, 45% ABV, 90° proof/cask strength.

Boisé is a syrup produced from a mixture of Cognac, sugar and wood chips. It’s made by macerating, and sometimes boiling, oak chips with lower-proof spirit. The process extracts color from the oak chips and when sugar is added produces a concentrated syrup. When added to young Cognacs, it can make the spirit look and taste older than it is. The addition of boisé to Cognac is quite common among producers and is permitted by the regulatory body, the Bureau National Interprofessionnel du Cognac (BNIC). 

https://www.forbes.com/sites/joemicallef/2020/06/04/ten-outstanding-cognacs-that-you-have-probably-never-heard-of/#1b434bd11e6b