COGNAC, France, Aug. 21, 2017 /PRNewswire/ -- The Bureau National Interprofessionnel du Cognac has announced that, once again, shipments of cognac have risen during their 2016-2017 campaign to reach their highest levels to date, both in volume and in value. Cognac exports have continued to grow for the third consecutive year, with an increase of 10.2% in volume and 15.2% in value. This represents a total of 190 million bottles shipped within the year and a value of 3 billion Euros ex cellar1.
Dynamic increase and Recovery in All Major Markets Cognac category has solidified its position in the NAFTA zone2, with 82.1 million bottles shipped over the course of the campaign, or an increase of 9.3% by volume and 13.5% in value, The USA, traditionally the market leader, continues to drive the increase with 78.7 million bottles.
In the same period, shipments to East Asia have also made gains, with 53.7 million bottles or an increase of 10.6% in volume and 19.4% in value. China played a significant role, with almost 22.6 million bottles imported3.
At the same time, and after several years in decline, shipments within Europe have turned around. Growth was 10.1% in value and 8.1% in volume or a total of 42.1 million bottles.
These positive results are due to growth in Cognac's traditional markets, notably the United Kingdom and Germany (respectively +3.6% and +22.2% in volume), but also to significant recovery in Eastern Europe and Russia (+73.2 % in volume)
Potential for Growth in the Rest of the World Increased shipments also confirm potential for growth in African (South Africa) and Caribbean markets, with increases of 14.6% in volume and 21.6% in value4. These emerging markets now represent 6.5% of total exports or more than 12.3 million bottles.
Exports Are Up at All Levels – VS, VSOP, XO and Hors d'Age Cognac at the VS level continues to do well in the principal markets. Sustained by a dynamic U.S. market, shipments of VS account for half of all Cognac exports, with a rise of 9.6% in volume and 15.0% in value. At a little more than 40% of export volume, shipments of VSOP rose again by 7.4% in volume and 9.0% in value. XO and Hors d'Age bottlings saw an impressive increase of 24.2% in volume and 23.2% in value that is directly linked to a revival of Asian markets.
Results Directly in Line with the Business Plan Once again, increased exports over the course of the 2016-2017 campaign reached and even exceeded the forecasts outlined in the business plan collectively set forth by the producers and confirms their vision of the future for the Cognac sector. The goal of the Business Plan is to guarantee production and stocks that meet market needs and potential. The Charentes-Cognac viticultural region will take these results into account in their upcoming discussions of authorization for new plantings in 2018 that are part of the long term management of the Cognac sector.
Thanks to the good results across the entire sector and all markets, which confirm the dynamism of the Appellation and its international prestige, Cognac producers are confident in the future success as defined in their Business Plan. They are fully committed to the controlled development of production capacity in line with market growth.
Moreover, following the damaging frost and hail in parts of the region, the Cognac sector is moving to institute all measure to help growers manage any damage as well as being proactive to better anticipate such events in the future.
About the Bureau National Interprofessionnel du Cognac The Bureau National Interprofessionnel du Cognac is a forum for consultation and decision-making across the Cognac sector. With membership composed equally of growers and negotiants, its primary role is the protection Cognac's registered designation of origin and representing the interests of the 4,544 growers, 112 distillers and 274 negotiants of the Cognac appellation.