Cognac falls 6.7% in volume and 10.2% in value

The Bureau National Interprofessionnel du Cognac (BNIC) has announced shipments of cognac have fallen by 6.7% in volume and 10.2% in value from August 2013 - July 2014.

Total shipments of cognac for this period were 155.5million bottles, equivalent to 435,358 hectolitres of pure alcohol with a total market value of €2bn.

North America continues to post growth - 6% in volume and 3% in value. The US cemented its position as volume leader with a total of 51.4m bottles exported.

The decline in the Far East was reflected by a -20.9% decrease in volume and -19.1% in value. Despite this, 49.2m bottles – close to €1bn in value – was exported.

The European market showed signs of contraction with a -4.7% decline in volume and -11.7% in value. The total number of European exports stood at 41m bottles. Eastern Europe however, posted positive results with an increase of 4.4% in volume.

Shipments to Sub-Saharan Africa posted the most promising results with a 16.9% rise in volume and 20.1% in value – predominantly South Africa and Nigeria.

The VS quality category is on the rise, up 3.1% in volume and 1.8% in value, mainly a result of the enthusiasm for the category in the US.

Results from 2013/14 show an almost even distribution of exports between the main market zones: North America (36.4%); Far East (31.6%) and Europe (26.4%).

For further analysis, please see editor Christian Davis’ cognac feature in November’s edition of Drinks International