Torula News December 1998

29/12/98	ORECO (Economic Organization of Cognac or Organisation Économique du Cognac) published its yearly financials. They are steady, not glamorous. In the maze of numbers and various denominations (Hl d'A P, Hl volume, comptes 6,7,8 etc.) a fundamental message for the future is missing. Buying real estate and conducting tasting courses is an everyday business. How about Cognac futures market? Is ORECO the right group to initiate it? The Cognac industry definitely needs futures. The question is who and when? And why not ORECO? What do you think? (Sud-Ouest 29/12/98, Torula News)
29/12/98	On the 15/12/98 Torula News published its 2nd "wish list" for the Cognac industry and its upcoming new President of BNIC - The quality. In less than two weeks, with great pleasure, we notice an article by Alexandre Le Boulc'h of Charente Libre (29/12/98) proclaiming that the quality is the most important element of Cognac, it drives sales, it preserves the image. In a wide ranging interviews, he quotes the quality flag bearers of Cognac: Olivier Blanc of Leopold Gourmel, Jacques and Antoine Rivière of A.E. Dor, Pascal Fillioux and his wife of Jean Fillioux, Alain Brastaad and Patrick Peyrelongue of Delamain and three generations of women at Ragnaud-Sabourin. And we salute the creation of Le Club des Cinq. More on it in the New Year.
29/12/98	Santa Claus dropped by with fabulous gifts at Torula News; 4 magical books on Cognac and Armagnac written in yesteryears. We have read White Wines and Cognac by Warner Allen published in 1952, Brandies & Liqueurs of the World by Hannum and Blumberg, published in 1976 by Doubleday and Armagnac, The Spirit of Gascony by C.E. Page published in 1989 by Bloomsbury. Click here to read our reviews. The fourth book, a piece de resistance, we are re-reading. It is that good but we will share it with you in a few days.
28/12/98	Success breads success and that benefits Cognac. After a week at Gare Montparnasse, days in Bordeaux and in Royan, and after 2 popular weekends in the Cognac region which culminated at the monthly fair in Rouillac, over 400 Les Bouilleurs de Cru and its President, Pascal Millasseau must be congratulated. As well as other organizations that assisted in this project, in particular the BNIC. Now, the challenge is how to continue, how to do the same during the tourist season in the region? Torula News visited number of Bouilleurs and without any exception, everyone was up beat, presentations were excellent and the visitors felt welcomed. Among the best experiences we had were at 182 (Cognac chocolates), 393 (ABC of tasting), 268 (we felt like at home), 201 (we wanted to stay), 80 (poetry in eau-de-vie was visible), 151 (a bio experience was worth the rain and sleet) 353 (a very friendly place), 321 (pride of youth), 295 (brothers pride) and many, many others. Without GPS we did not find 82, 166, 167, 297, 346 and 346. Next time, we hope to visit all.
24/12/98	Sud Ouest reported 10,000 visitors last weekend to Portes Ouvertes at Les Bouilleurs de Cru de la Région d'Appellation Cognac. This coming weekend, 26 27 December, we can do better.
24/12/98	Free guide to activities in and around Cognac, Cognac Tonik!, is now available on www.swfrance.com
24/12/98	Read Robert Stansfield's What's next for Rémy Cointreau? on this web site. Provocative and challenging "food for thought". Just what Santa Claus prescribed.
20/12/98	Braving a wet and stormy weather in the Cognac region, many have visited a very well organized 1st weekend of Portes Ouvertes of over 400 Les Bouilleurs de Cru de la Région d'Appellation Cognac. All of you who have missed it, the 2nd Portes Ouvertes is taking place on 26-27 December 1998.
20/12/98	Old drink makes a comeback and creates new competition for Cognac. Absinthe, this time made in the Czech Republic, is making a strong appearance in the UK. The use of a Toulouse-Lautrec famous cocktail recipe "tremblement de terre" which uses absinthe and Cognac, adds to the irony. (FT13/12/98)
18/12/98	Torula News welcomes a smart and informative Internet site from BNIC. www.bnic.fr
18/12/98	Under a new banner "Grande Famille Viticole", number of viticulteurs in the region are stopping eaux-de-vie tankers attempting to obtain cargo value (declared buy/sell price of the transported eaux-de-vie). These actions are against big wholesalers that the "Grande Famille Viticole" believes buys low and sells high.They simply forget a basic tenant of trading: buy low, sell high. Using examples of Cognac XO selling price of FRF69 and the VS at FRF55 and claiming that the low price will not generate additional volume is simply wrong. Price matters as the quality matters. This is a mis-directed effort. In addition, with the sales on Internet exploding, driven by 25 to 50% discounts, the day is coming when the Cognac sales on the Internet will be driven by the amount of discount offered for the products of highest quality. This is already happening with wines, selected spirits, books, software and CDs. (Sud-Ouest 18/12/98; Torula News)
18/12/98	A point of phasing duty free sales in the EU by June 1999 was raised by Alain Philippe, Director of BNIC, recently. Following a very confusing and politically sensitive subject of general tax harmonization within the EU, the ending of the duty free sales will be reviewed and hopefully postponed. The Cognac industry had enough time to adjust to this phase out in the 11 countries of EU. Another series of studies and arm twisting appears to be on the way. Torula News understands that number of significant sellers of Cognac in the duty free stores in affected countries have made alternative plans. This is what conducting business is about; react, adjust and concentrate on the future opportunities. Another series of studies, protracted negotiations and delays will only buy the industry an illusionary reprieve. (Sud-Ouest 18/12/98, Torula News)
16/12/98	Torula News exclusive interview with Bernard Guionnet, newly elected President of BNIC.
15/12/98	Bernard Guionnet, elected in the first round, with 21 votes out of 34 (61%) to become the next President of BNIC. Jean-Pierre Lacarrière of Rémy Martin was elected vice President, representing trading community - négoce, in the fourth round with 21 votes. Some suprising, last minute candidates (Dumont, Bégaut) made no impact on the final vote for the Presidency. The battle for the votes for the Vice Presidency was much more complicated. The long delayed election is now over and it is time to make the Cognac industry work. Bernard Guionnet has this opportunity.
15/12/98	Torula News second "Wish List" for the new President of BNIC: Improve quality and the sales will return. BNIC must flex its muscles to force Cognac producers to start paying attention to the quality of bottled product. Cognac and its derivative aperitifs, mixes and all other Cognac based products must be allowed into the market only if they meet stringent quality tests. The answer to the Cognac industry situation is not a mindless introduction of new products which, in general, lack quality and devalue Cognac at its basic. There must be a stricter selection of products, based on quality, than what we have seen in the last 6-9 months. This applies to all Cognacs regardless if it is VS or XO, single cru or a blend, small producer or a Grande Marque. With quality comes also responsibility to differentiate generic Cognac products and its derivatives. Better and clearer labeling of what is in the bottle will also help. As one producer pointed to us recently:"70% of my sales are generated by our VSOP". What he has forgotten to add that as a result of poor quality his sales have been declining. "Less is more" expression applies to Cognac industry today; produce fewer products, return to basic (VS, VSOP, XO, vintages), add Cognac Blanc and Cognac Aperitif as separate and different types of product and do not forget that Cognac is still perceived as a luxury, quality item.
15/12/98	This coming weekend, 19-20 December, come and visit over 400 Les Bouilleurs de Cru de la Région d'Appellation Cognac for their 1st of two Portes Ouvertes weekends in the region. After successful promotion in Paris, the region needs to show support and solidarity with the Bouilleurs.
15/12/.98	Within the hours, the election of the President of BNIC will be concluded. Baring the last minute suprise like parachuting an outsider, Bernard Guionnet should be elected. In meantime, the outgoing President offers regrets and not much of ideas other than "there are no other solutions for the Cognac region but to adopt vineyards". Implied in it is the removal of "cognac" vines. We wish Mr. Guibé much success in other endeavors as his Presidency was one of failure unrelated to the Asian crisis, which is frequently used here as an excuse for the industry problems.
11/12/98	A quick survey of some of the 20 Cognac producers that participated in the 20th National Exhibition of French Private Cellars (Caves Particulieres) at Porte Versailles in Paris last week indicate that their Cognac and Pineau des Charentes sales matched last year's results with some showing a small increase. This is good news points to a slow revitalization of the French Cognac and Pineau des Charentes market.
10/12/98	With only four days to go, new names are being floated for the five year term of the Presidency of BNIC; Yann Fillioux (Hennessy), Treutenaere (Courvoisier), Lacarrière (Rémy Martin). But the front runner continues to be Bernard Guionnet and he should master 66% of the vote on Tuesday. (Sud Ouest 10/12, Torula News)
10/12/98	Marie Brizard, parent of Cognac Gautier, reported a third consecutive year of losses.
10/12/98	With the upcoming election of a new BNIC President on 15 December, Torula News begins to compile a wish list. A random selection of items that require an immediate attention of new President. Today's item on the Torula News 'wish list' is: How to spend BNIC advertising and promotion budget in 1999: cancel participation in the April Cognac Police Thrillers Film Festival, implement Cognac generic advertising campaign, position Cognac as a product to be seen in films and TV production (i.e. Hollywood), develop a promotion campaign that attracts tourists to the region and generates visits to all Cognac producers, regardless of size and cru (i.e. potential partners could be American Express, Thomas Cook). A 24 million French Francs budget for 1999 presents a good opportunity and a fresh start!
10/12/98	In a great rush to create more Cognac presence on the Internet, Torula News welcomes two new sites; www.cognacweb.com and www.cognacnet.com but we also notice than many existing Cognac web sites are rarely updated. Once again, it is not about volume of information but it is about quality of information.
09/12/98	Cognac Pleasure Tasting, an amateur gathering of people interest it in Cognac, held its final 1998 tasting at Rémy Martin followed by a dinner at Le Club de Rémy Martin. 45 amateur tasters representing France, Ireland, New Zealand, Germany, Sweden, Canada, Scotland, USA and England enjoyed full range of Cognacs Rémy Martin; Louis XIII, Extra, XO Special and VSOP. Tasting results will be published before month-end on www.swfrance.com and www.cognacnet.com . The 1999 Cognac Pleasure Tasting program is well underway and it will include Camus, Frapin, Forgeron among others.
05/12/98	Holiday shopping season is in full swing. The Internet shopping dominates in the USA but Europe is not far behind. Most Internet Cognac sites offer e-commerce. www.swfrance.com offers a mix of e-commerce and mail order for Cognac, Pineau des Charentes, Armagnac, chocolates and conserves. In an exclusive for this web site, Cognac & Company presents its rare and unique Cognac Christmas catalogue.
05/12/98	Hennessy confirms elimination of 159 jobs by year 2001. Will other big Cognac houses follow? (Sud Ouest 05/12/98; Torula News)
05/12/98	Bordeaux based CCS finally buys Armadis, an owner of Chabot Armagnac product line. (Sud Ouest 5/12/98)
05/12/98	Reluctant Bernard Guionnet to become the next President of BNIC ... Confirmation meeting is scheduled for 15 December.(Charente Libre 03/12/98, Torula News)
04/12/98	Cognac Thorin introduced two new products at the Caves Particulieres in Paris; Princeps an excellent eaux-de-vie that won this year's gold medal at the Segonzac tasting and Top 2000 Cognac. The Thorin Top 2000 Cognac comes from the Thorin cellars but it is packaged identically as the Drouet Top 2000 Cognac (see 01/12 news item). Drouet retains its blue signature color and Thorin choose light brown, but is it enough to differentiate those products? In what might be the first in the Cognac region, 2 Cognac producers decided to share identical packaging for different Cognacs. Cost saving was an important factor in their decision or is this a first step on the road to a merger? Will it confuse customers? Top 2000 packaging is of the highest quality.
03/12/98	20 Cognac, Pineau des Charentes and Vin Pays Charentais producers are working hard at 20th National Exhibition of French Private Cellars (Caves Particulieres) at Porte Versailles in Paris: Paul Bossuet ( Logis de Folle Blanche), Bernard Boutinet, Jean-Noël Collin, Jean-Pierre Leonard, Paul Giraud, Jean-Claude Roy, Claude Thorin, Christian Landreau (Logis de Montifaud), Bernard Begaud, Mr. Ardouin (Chateau Guynot), Guy Filloneau, Alain Gousseland, Cartais-Lamaure (LaGrange du Bois), Jocelyne Grateaud,Odille Pelletant, Jean-François Queron (Le Plantis des Vallees), Robert Pouilloux, Gérard Simmonot, Patrick Tesseron, Jean-Marie Vallaeys. Trade was brisk in the spacious new exhibition place. Several exhibitors introduced new products and presentations (i.e. Boutinet, Thorin, Tesseron). Among some 880 champagne and wine producers at this exhibition, 20 Cognac producers represented the region very well. There were also 6 Armagnac producers, many with Floc de Gascogne, Pousse Rapiere and white eaux-de-vie d'Armagnac products.
02/12/98	L&L introduces new products; Special Cognac for January Comics Festival in Angouleme and Cognac Bio (Organic Cognac) for VINEXPO '99 in Bordeaux. L&L Organic Cognac is a result of a joint undertaking of 14 distillers in the Cognac region and marketing savvy of L&L. Well done, L&L! (Charente Libre 1/12, Torula News)
02/12/98	For the third months running, www.swfrance.com hosted over 20,000 Internet viewers.
02/12/98	20th National Exhibition of French Private Cellars (Caves Particulieres) opened in Paris today at Porte de Versailles - Hall 7/1. 1000 exhibitors (many representing Cognac industry) expect 100,000 visitors. The exhibition last day is on the 7/12.
01/12/98	1998 wine distillation is underway in the Cognac region. As a result of different weather conditions in 1997, the 1998 wine is different; more aromas, different acidity, more finesse. Expectation for an excellent 1998 eaux-de-vie is high and is well justified.
01/12/98	Cognac Drouet introduces a limited series Cognac Top 2000, a blend of of the best eaux-de-vie in the their cave.
01/12/98	Sitevinitech, The International Trade Exhibition of Equipment and Techniques for Wine Growing and the Production of Wine and Spirits opened today in Bordeaux. It continues till the 4th December.