Memory: First Quarter 2017 Cognac Sales Continue at Record Pace

Cognac Sales Volume Driven By V.S. and XO Cognacs

According to the Bureau National Interprofessionnel du Cognac (BNIC), Cognac sales rose to record levels in 2016. Sales of Cognac were up 6.0% in volume and 6.8% in value from 2015. Approximately 179.1 million bottles of cognac were sold in 2016. The BNIC noted last week that cognac U.S. sales momentum continued in the first quarter of 2017. Sales of V.S. (+11.4%) and XO (+16.8%) cognacs showed strong sales growth during the most recent twelve month period, while V.S.O.P sales (-2.5%) suffered a small decline.

For the calendar year of 2016 the BNIC reported sales of approximately 179.1 million bottles of cognac.For the 12 month period from April 2016 to March 2017, the BNIC reported sales of approximately 182.1 million bottles.

Hennessy Warns: Extreme Hennessy V.S. Demand May Cause Shortages Later This Year

Earlier this month, LVMH, owner of Hennessy, released its first quarter revenues and noted that sales of Hennessy cognacs rose 21% with the bulk of the sales growth coming from Hennessy V.S. As a result of such sales growth, Hennessy warned that there may be inventory shortages of Hennessy V.S. later in 2017.

Here are the BNIC sales numbers:

Cognac Sales by Geography during the calendar year 2016 and from the 12 month Period from April 1 2016 to March 31 2017

• 2016 North America* – 77.3 million bottles (+14.2% in volume; +14.3% in value) 4/2016-3/2017 – 80.6 million bottles
• 2016 Far East – 51.1 million bottles (1% in volume; +3% in value) 4/2016-3/2017 – 49.9 million bottles
• 2016 Europe – 39.4 million bottles (-1.2% in volume; -1.0% in value) 4/2016-3/2017- 39.9 million bottles
• 2016 Rest of World – 11.3 million bottles (+5.4% in volume; +5.1 in value) 4/2016-3/2017 – 11.7 million bottles

Cognac Sales By Type in 2016 vs 2015

• 2016 Very Special (VS) +9.6 in volume; +13.0% in value. Cognac rated VS was approximately half of all cognac shipments. 4/2016-3/2017 – 93.9 million bottles +11.4% in volume
• 2016 Very Superior Old Pale (VSOP) + 0.4% in volume; +0.3 in value. Cognac rates VSOP was approximately 40% of all cognac shipments. 4/2016-3/2017 – 68.3 million bottles -2.5%
• 2016 Extra Old (XO) +11.7% in volume; + 8.3% in value 4/2016-3/2017 – 19.9 million bottles +16.8%

The BNIC noted that the record cognac sales in 2016 accounted for more than 20% of total French exports of wine and spirits.

* The United States accounted for 74.1 million of the bottles of cognac sold in North America in 2016.

Cognac sales numbers: BNIC