ARMAGNAC has so much going for it that it’s difficult to know where to start. The fact that it begins with the first letter of the alphabet can only help when novices are seeking out the runners and riders of the spirits world.

At more than 700 years, the spirit of Gascony in south west France can claim to be one of the world’s oldest. Yet it is overshadowed by the big brown spirits from Scotland and neighbouring Cognac, let alone rum and bourbon. Armagnac has struggled to get its share of voice and throat. It is so small scale and the producers and their generic body, the Bureau National Interprofessionnel de l’Armagnac, have made its scale a positive.

Amanda Garnham, attachée de presse for the BNIA says: “Armagnac’s strength lies in its rarity, its diversity, its traditional methods of production and the handcrafted family nature of its production with very few big companies.”

The UK was traditionally the important market for armagnac. Its rustic nature, vintages and ‘small scale-ness’ still attract spirits drinkers who wish to show off their discernment.

But there is a new kid on the block now. The Chinese have discovered armagnac and last year alone sales multiplied tenfold, reaching 320,000 bottles. China has gone from 10th to number one and the association has also been targeting Japan and Australia. Armagnac has done well in Japan despite the country’s economic doldrums and natural catastrophes, thanks in no small way to French chef Alain Ducasse and his restaurants.

Events for the Japanese trade professionals, such as tastings and food matchings, took place in Tokyo and Osaka. As for Australia, Melbourne and Sydney are good places to find armagnac cocktails, according to the BNIA (see list below). If armagnac has an Achilles or d’Artagnan (Alexandre Dumas’ famous musketeer was a Gascon) heel, it is cocktails (see May Matta-Allah in New York, page 38).

James Rackham, head of UK importer Emporia, has probably done more than most to further sales of armagnac in the UK, through the Comte de Lauvia and Marquis de Montesquiou brands, the former through multiple retailer Sainsbury’s. He sees it being drunk in the traditional way as a one-shot digestif.

Rackham says: “Cocktails are not really happening. There are so many other things, what with vodka, gin and tequila. Brandy is not really doing it. There is blanche armagnac but I do not really buy into that and I don’t think you need to make armagnac ‘contemporary’.

“With the history, tradition, the grapes, cepages (varieties) and the diverse appellations, I think there is a whole playground for someone interested in distillates,” says Rackham.

Rackham positioned Comte de Lauvia XO 12 Year Old at the same price point as The Glenlivet single malt scotch whisky, whereas he sees Marquis de Montesquiou as more “über-premium” and positions that more alongside the Hennessy cognacs.

Neil Mathieson of Eaux de Vie and chairman of judges at the International Spirits Challenge, concurs with Rackham about cocktails. “I do not see it with mixologists,” he says. “Armagnac has a lot of extract and I do not think it is ‘clean’ enough to mix with tropical flavours, even though orange is a traditional partner to brown spirits.”

Vintage approach

Mathieson sees armagnac as akin to a Burgundy domain rather than a cognac house. He is critical of the cognac houses which he feels do not do enough to promote the overall brandy sector, certainly in emerging markets.

“They carry on as if armagnac does not exist and take their own route,” says Mathieson. He doesn’t sell to China or Hong Kong and is concerned that, as Armagnac is populated with nothing but relatively small-scale producers, prices will rise if demand from the far east starts to ramp up. Cognac and scotch are primarily about blending on a massive scale, particularly with the major international brands, but armagnac is small and majors on vintages so the aged stock isn’t there for a large scale uplift.

Mike Sweetman, vice-chairman of the United Kingdom Bartenders’ Guild London tells DI: “I do agree to a certain point with James (Rackham) about it being a digestive to be enjoyed after a meal with a nice cigar.

“I am currently organising an armagnac cocktail competition for the members of the UKBG who went on the trip to Armagnac last year. We have come up with some interesting libations, using armagnacs from the houses that we visited.

“With regard to its presence on the back bar, there are a good many top hotels with a nice selection of armagnacs. Unfortunately, there are also a lot of bars which don’t carry any at all, which I think is really disappointing. I think I have a better selection on my private back bar at home than some bars that I visit.

“In my travels around bars, even some 3/4 star hotels, they neither carry it nor do their staff know what you are asking for. This I am sure is due to lack of education,” says Sweetman.

“The trip last year was both educational and inspiring. Getting first-hand knowledge on production, seeing how the grapes are grown, harvested and crushed. The best part: the tasting. This was so important, learning the history and understanding about how it is all made matured and bottled,” says Sweetman.

Chris Hiatt, the spirits buyer at Slope Cellars liquor store in Brooklyn New York, says: “I’m starting to want only to recommend armagnac to anyone who’s looking for a ‘brown’ spirit, simply because it’s really tasty stuff, and it’s amazing more people aren’t hip to it. It’s got a cool and unique regional style at a variety of price points and it usually wears it’s age well.

“I prefer to drink the stuff neat, but I suppose a more affordable version would be good in a Sidecar. I think Blanche de Armagnac is the spot to watch for the region’s increased participation in the cocktail craze,” says Hiatt.

“New York City is a pretty darn good place to get inside of some armagnac. It’s a drinky town in general, with a real pipeline to the Old World. Therefore, there’s crazy things like armagnac and cognac around. Chances would be slimmer that I would’ve even run into this stuff had I not moved to NYC.”

Markets

Aurélie Desombre of Ryst-Dupeyron Armagnac says: “In our opinion there are two markets. One is to consider armagnac as a ‘sub-cognac’ – cheaper and of low quality. This is not our market. Another market is a niche market for people who consider armagnac better than cognac, as an alternative. It is a super-premium product, not very expensive and an undiscovered treasure. This second market may become very big in Asia. We work to be in this market.”

“Sales of armagnac in Asia are increasing. There might not be enough cognac and some big cognac company are now investing hard in Asia for armagnac. There is a real market based on the authentic story of the armagnac and the vintages,” she says.

“The biggest problem is to have product better known by the customers. The big companies are now investing in TV and newspaper advertising and that will help all the brands,” says Desombre.

Philippe Gelas of Gelas Armagnac says: “The spirits market represent more or less 15 billion bottles a year and armagnac is 0.3%. So, ‘no comment’ in term of quantity but in terms of high quality, niche armagnac should remain at the top level. The problem is most of people do not know about armagnac.

“It is getting better and better, above all in Asia where spirits are more often used as a gift and premium products such as armagnacs have a real opportunity,” says Gelas.

Last year Gelas introduced a single-cask armagnac, aged in Jurançon and Pacherenc oak barrels. He tells DI that he is also looking at a VS premium in a decanter to propose an inexpensive and attractive product for cocktails. Also four more single casks with Emilo Lustau oloroso (sherry), Porto Barros (port), Bordeaux Cadillac Château Fayau and Austrian sweet auslese.

Château de Laubade claims to be the premier estate in Armagnac (the biggest vineyard dedicated to armagnac only). Denis Lesgourgues says: “Also, we can count on the most significant inventory of super and ultra-premium eaux-de-vie, both blends and vintages. The fact that we are able to be a key player in almost all the segments of the category is a major strength.

“Our priority is to strengthen our position of the worldwide armagnac leader in value, not in volume, by being able to continue to offer the best quality through our quest of excellence,” says Lesgourgues.

Lesgourgues adds that the chateau has been looking at improving quality and has moved its youngest Bas Armagnac up from 12 to 15 year old (XO minimum is eight year old). Older eaux de vies in the XO have also moved up five years to 25 year old.

Janneau is the giant in Armagnac and the company’s Fabio Giovinetti claims: “Armagnac is the next hot category in aged spirits. With a 20% increase in export in 2011, it is set to grow, albeit on a quality level, stock permitting, just like the single malts. Quality, aged stocks: priority is a careful drive towards further premiumisation.”

Asked why bartenders and retailers should stock armagnac, Giovinetti says: “Its intense flavour, unique to a small territory; it’s hand crafted, it’s rare; armagnac can declare a minimum age.”

Qualitative distribution

Janneau colleague Corinne Bucchioni tells Drinks International: “As the volumes of production in the region are fairly small for the requirements of certain markets like China, we need to select a qualitative distribution to keep armagnac as a premium spirit. The overall premiumisation of the category is an important issue.

“Brazil could become an interesting market for armagnac. However, eastern Europe and Russia, as well as duty free, still offer good opportunities for growth.”

Joe Bates, Drinks International’s travel retail correspondent says: “Armagnac has a hard time coming out of cognac’s shadow. The likes of Chabot and Janneau do pretty well in Asia though at the top end of the price spectrum.”

Speaking of which, Chabot is offering a “one of a kind” collection of three age statements: 100 years old, 80 years old and 60 years old.

To produce this trilogy, Chabot says a selection of its oldest and most exceptional vintage armagnacs from its Paradise cellar were chosen and blended.

Benoît Hillion of Armagnac Dartigalongue sums it up: “Armagnac is still not very known, so we can do more by communicating. The market is open considering our size. The priority is developing sales with a good strategy, produce better products (less wood – more fruits and elegance), and work on nice packaging, with a real message on.”

Asked what the definitive armagnac cocktail is: “Very simple: 1/3 VSOP, 2/3 premium orange juice, ice. simple but successful.”

Cheers.