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

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: Hennessy, Rémy 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.

SPIRITS: THE TIP OF THE ICEBERG

BY ANTONIO GALLONI | DECEMBER 08, 2022

It all started innocently enough. Over the last few years, I have seen a marked increase in spirits made by winemakers. I thought it would be fun to taste them and write them all up. That was the genesis for this report. But then more and more samples arrived, and before I knew it, the article had morphed into a broad survey of spirits of all kinds. This article is clearly not comprehensive to any one category, but rather intended as a collection of spirits I think Vinous readers will enjoy.

As I started tasting through these spirits, I wondered if my approach to tasting wine and Champagne would be applicable, or if instead, I needed an entirely new methodology for looking at quality. I asked myself if there are really marked differences between several raspberry eaux de vie, for example. It turns out spirits can absolutely be assessed for aromatics, fruit, texture, finish and a number of criteria used in evaluating wine. If anything, the alcohol in most categories acts as an amplifier of those qualities and also accentuates both strengths and flaws. And yes, raspberry eaux de vie can be very different.

Where possible I have indicated lot numbers, although these aren’t always available in the world of spirits. I would like to see that change so consumers can know they are buying the same product I tasted and reviewed. In this regard, parts of the spirits world share some basic principles with other beverages such as NV Champagne, but also soft drinks and beer, where the goal is to create a ‘consistent’ product from year to year. There are virtues in that, and it is a skill, but I believe small batch bottlings that are differentiated are far more interesting, certainly far more interesting for the inquisitive reader looking for something that is truly distinctive. For now, I have relaxed the rule I have for NV Champagne where I only review bottlings that have a base vintage or disgorgement date listed.

But that does make me wonder what the future is for craft spirits. About a decade ago, I sat in the Krug tasting room with then-CEO Margareth Henriquez and Olivier Krug and explained that I would not review their Grande Cuvée because there was no way to ensure the batch I tasted was the same wine in the market. I suggested adding a base vintage or disgorgement date, which would differentiate releases, make each release special, and then, in time create opportunities for thematic tastings and/or special packaging, like mixed cases. “Our customers have no interest in this information,” was the reply.

Readers might find this hard to believe, but at the time, the Grand Cuvée struggled mightily in the market. It did not sell. And this was not that long ago. For a time, the half bottles were dumped in elite New York City restaurants (likely elsewhere too), where they were sold for next to nothing. Then, Krug began experimenting with thematic names for each release, before settling on the Edition system. A stroke of genius. Guess what happened? For the first time ever, Grande Cuvée became an allocated wine. All sorts of comparative tastings emerged, as did boxed sets that offer a combination of releases.

To be sure, spirits are different. Many are made in tiny quantities and on a far smaller scale than wine or Champagne. Unlike wine, bottles are opened and often enjoyed over a period of time, so comparative tastings are less the norm. Even so, I would like to see better and more consumer-friendly labeling. There is a possible parallel with the world of grower Champagne, where an increasing number of producers detail varietal breakdown and the exact source of their fruit. Why would that not be applicable to a fine source of pears or raspberries for eau de vie, or a specific breakdown of lots in a Cognac? All information like that does is create greater consumer interest.

I tasted the spirits in this report in November and December 2022.

The Eau de Vie Damson Plum from Capreolus is laced with hints of dried fruit, crushed flowers, herbs, mint and red stone fruit. Exotic and nuanced the Plum Brandy is exquisite. It is an especially floral, savory plum spirit. This fruit was sourced in Vale of Evesham, This is bottle 118 of 336.

The Eau de Vie Raspberry melds together plenty of fruit character, but in a serious, almost imposing style. This is not an easygoing spirit at all. Then again, approximately 75 pounds of fruit yield one liter of eau de vie. Sweet floral and herbal accents add lift. There is a bit of angularity and that leaves the Raspberry feeling a bit tense next to the other eaux de vie in the range. This is bottle 257 of 301.

The Eau de Vie Quince is floral, lifted and also very refined on the palate. A spirit of understatement and class, the Quince is soft-spoken, with impeccable balance, fine length and tons of sheer appeal. Dried floral and herbal notes resonate on the finish, but it is the overall balance I am most drawn to here. This is bottle 48 of 116.

The Eau de Vie Poire Williams (100% Bartlett Pear) from Cazottes is fabulous. Creamy and textured, the Poire Williams soars out of the glass with stunning aromatic complexity. Soft contours add raciness to this decidedly polished, exuberant eau di vie. The style is one of sublime refinement and class - perhaps too much for some palates - but all the elements are so well balanced. This release is a total knockout.

The Eau de Vie Reine Claude Doreé (100% Greengage Plum) is a wild, exotic eau de vie. The aromatics alone are crazy. A whole range of floral and savory top notes give the Reine Claude Dorée its distinctive personality. Fruit is more in the background in this captivating spirit from Laurent Cazottes. The bright, clean finish is a thing of beauty.

The Haut-Armagnac La Réserve is very pretty, aromatic and lifted. What this young Haut-Armagnac lacks in age it more than makes up for with its exquisite balance and finesse. There are no hard edges whatsoever. Sweet spice, leather and floral notes give the Réserve notable aromatic presence to match its mid-weight personality. La Réserve is a blend of young Ugni Blanc and Colombard, usually about six years old, aged in 100% new French oak and bottled at 45% abv.

The 2011 Haut-Armagnac La Flamme (Ugni Blanc, Colombard) is a blend of single barrels bottled at full proof. Rich and explosive, La Flamme is a heady, exotic Haut-Armagnac that delivers the goods big time. Here, too, the balance is exquisite, especially for a spirit that is a little more than a decade old. Light caramel, spice, herb, maraschino cherry and toast notes build into the pure, persistent finish. This is a terrific showing. Abv is 50.5%.

The 1994 Brut de Fût is a single cask blend of 65% Ugni Blanc and 35% Colombard bottled at cask strength, unfiltered and with no additives. Gently mellowed by time, the 1994 is a wonderfully expressive Armagnac. Soft contours wrap around a gentle core of macerated cherry, spice, leather, dried herbs and light caramel notes. This is all understatement and elegance. I very much admire the precision here. Spring frost and a dry summer yielded a small crop of ripe grapes. The 1994 spent a total of 27 years in wood.

The Cognac Grand Champagne Chai Paradis Très Vieille Réserve is a single cask bottling from Frapin's Paradis cellar. Hints of smoke, caramel, dried flowers, leather and orange peel lend notable aromatic presence. A Cognac of understatement and finesse, the Très Vieille Réserve is wonderfully expressive right out of the gate. Abv is 42.8%.

The Eau de Vie de Cidre Double Zero is gorgeous. It was made from more than thirty varieties of apples, blending bitter, bittersweet, sweet and sweet varieties. Fruit is harvested, then cellared for a few months to concentrate the flavors, before fermentation and distillation begin. Laser-like in its focus, with gorgeous aromatics, this eau de vie is seriously impressive. A glass will provide pleasure to both the hedonistic and intellectual senses. This is L.20.

The Rhum Agricole Organic is a powerful spirit that makes its full-proof felt. Flavors and textures are dialed up to eleven. Hints of lime, ginger and spice add complexity to this intense, wonderfully complex rum. Although a bit of a splurge, I would be thrilled to have it on my bar for cocktails. The Organic is made from hand-harvested sugar cane, distilled in copper creole stills and bottled at 71.2% abv

The Rhum Agricole Les Mangles is a single parcel, single cane rum. Rich and explosive in feel, the Mangles possesses tremendous depth right out of the gate. Dried flowers, leather, earthiness, herbs and a touch of mint add striking complexity, but more than anything, the Mangles is a rum of textural density. Pretty floral and spice accents round out the finish. It's another intense, full-bodied rum from Père Labat, bottled at 70.7% abv.

The 2009 Single Barrel Fut is a tiny bottling of 12-year-old Rhum Agricole aged in a bourbon barrel. Soft and delicate, with striking complexity, the 2009 is lights out. Maraschino cherry, spice, dried flowers, orange peel, leather, cedar, chocolate and sweet toasted oak lend tons of aromatic and flavor complexity. The 2009 is outstanding, but readers have to expect a rum with a pretty strong oak imprint. Time in wood does seem to attenuate the power found in Père Labat's young Rhum Agricole. The 2009 Single Barrel was bottled at 61% abv. I loved it.

The Armagnac Les Carré des Fantômes is a single parcel field-blend bottling of Plant de Graisse, Mauzac Blanc, Meslier St François, Jurançon Blanc, Mauzac Rosé and Clairette de Gascogne, six nearly extinct varieties. It is an especially airy, floral and savory style of Armagnac, maybe a bit classically austere in profile, but also incredibly intriguing. Light in color, with slightly nutty, oxidative overtones, the Carré des Fantômes is an absolutely gorgeous spirit. It is a beautiful, eccentric Armagnac that requires an inquisitive palate to fully appreciate. Batch 08.

The 1990 Single Cask Armagnac is a fabulous choice for readers looking for an Armagnac with the gentle, burnished character that only comes from long maturation in cask. Soft and engaging, the 1990 is an absolute delight. Scents of dried figs, spice, caramel, crushed herbs, leather, barrel toastiness and dried flowers are all woven together. No topping during aging results in a spirit with gorgeous complexity that develops in a very gradual oxidation that has taken place over more than thirty years. Lovely.

The 2006 Calvados Single Cask was distilled from a mix of more than 40 varieties of apples and spent 15 years in French oak prior to being bottled at cask strength. It offers a gorgeous combination of bright fruit and the more complex notes conferred by aging in barrel, all with the softness achieved with time. Gentle smoke, spice, leather, orange peel and dried flowers all grace this exquisite, wonderfully complex, delicate Calvados.

The Armagnac XO from L'Encantada is a blend of eight barrels spanning vintages 2006 to 1986 from five different domaines. It marries the power of Armagnac with notable elegance and tons of finesse. A spirit with no hard edges and fabulous balance, the XO is magnificent. Fruit, floral, spice, dried fruit, caramel and subtle oak notes are all beautifully woven together. The XO is a fabulous introduction to a range mostly composed of single barrel offerings. The purity here is just superb. This is bottled at cask strength, so there is plenty of intensity, yet this lies on the more refined side of Armagnac.

The Corn Whisky Bota NO 2021 is a single barrel bottling made from 100% Spanish corn from the joint venture between Equipo Navazos and importer Nicolas Palazzi. It was aged for 15 years in an Oloroso Sherry cask, with no topping (hence the designation 'NO') and bottled at full proof. A powerful, explosive spirit, the Corn Whisky is packed with scents of scorched earth, game, leather and earthiness. There's not a lot of subtlety here, but I doubt that is the point. Bottled in 2021.

The Cognac Hommage a Yves & Jean-Noel Pelletan is a tiny blend comprised of one barrel of 1965 and a few demijohns going back to 1925. It is the last bottling from Palazzi's days of buying and blending Cognacs under his own label. Quite potent in the glass, the Hommage is a bit rustic, but also incredibly authentic in feel. The explosive power is palpable. It's a Cognac for readers who appreciate structure and body more than restraint. The Hommage was bottled at cask strength and dedicated to master coopers Yves and Jean-Noel Pelletan.

The Eau de Vie Gravenstein Apple is packed with fruit flavor, spice and strong dried white notes. There's wonderful savoriness and tartness to balance some of that fruity character, along with tons of depth and what comes across as strong skin character. This is one of four eau de vies in Rochelt's gift box set.

The Eau de Vie Morello Cherry is one of my favorite eau de vies in this collection. Creamy and expansive, the Morello is all finesse. Crushed red-fleshed fruit, spice, sweet floral accents and a kick of warmth all come together in a spirit that is impeccably balanced from start to finish. The depth and explosive complexity here are off the charts. This is one of four eau de vies in Rochelt's gift box set.

Rochelt's Eau de Vie Wachau Apricot is ridiculously great. Intensely aromatic, Wachau with almost tropical overtones, the Apricot is so expressive from the very first taste. Yellow orchard fruit, ginger and soaring aromatics stain the palate. It's an eau de vie that deeply satisfies both the hedonistic and intellectual senses. I will remember tasting it for a very, very long time. What a knockout. This is one of four eau de vies in Rochelt's gift box set.

The Eau de Vie Quince starts off quite subtle and then explodes through the mid-palate and into the finish. Strong mineral and earthy undertones give the Quince uncommon complexity to play off fruit flavors. Deep and expansive, with tons of character, the Quince is wonderfully complete, but also quite imposing. There's a ton of power and substance here, with an almost phenolic quality that lingers on the finish. This is one of four eau de vies in Rochelt's gift box set.

The Eau de Vie Mirabelle Plum was distilled in 2009, and then aged in glass balloons, in the classic Rochelt style. It is wild, penetrating and full of character. The feeling here is one of focus and length, more than the body found in some of the other eau de vies in this collection. Sweet floral and savory notes continually open in a spirit of uncommon finesse and nuance. The Mirabelle hovers on the palate with wonderful elegance. What a knockout.

Radio Imbibe Episode 46: Nicolas Palazzi of PM Spirits

The cover story of our March/April 2022 issue features brandy, and for this episode, we wrap up our coverage of the spirit with Nicolas Palazzi. Born in Bordeaux and now living in Brooklyn, Palazzi is the founder of PM Spirits, an importer and distributor of specialty spirits, including Cognac, Armagnac, and Calvados. For this episode, we talk with Palazzi about his search for memorable barrels of brandy, what he looks for in great brandies, and his work to bring these spirits to an American audience. 

Radio Imbibe is the audio home of Imbibe magazine. In each episode, we dive into liquid culture, exploring the people, places, and flavors of the drinkscape through conversations about cocktails, coffee, beer, spirits, and wine. Keep up with us on Instagram, Twitter, and Facebook. And if you’re not already a subscriber, we’d love to have you join us—click here to subscribe.  

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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.

Straight From the Barrel

“...Hommage a Yves & Jean-Noel Pelletan, the rare cask-strength Cognac, has a boldness that belies the softly nuanced quality its category is known for.”