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Cognac returns to solid growth

Published:  14 October, 2015

Cognac shipments continue to rebound quickly, according to the latest figures from the Bureau National Interprofessionnel du Cognac (BNIC).

Total shipments worldwide were up 20.7% year on year, with the third quarter up 12.4%.

This represents a fall on the second quarter, which saw shipments grow by 19.1%,

North America remains the strongest territory for Cognac export, with a quarterly uptick of 15% aided by exceptional 37.3% growth in September. Asia is up 9.6% on the quarter, with Europe up 10.9%.

VS accounts for almost half of the monthly shipments, with VSOP 39.4% and XO 11%. VS is up 18.7% on the quarter and VSOP 8.5%. XO declined marginally - contracting by 0.3% year-on-year. However, its September shipping was up 17.3%.

Overall the figures suggest a strong return to health for Cognac which had a disappointing 2014.

Shipping volumes dropped 6.7% in the year, driven by a steep downturn in demand in the Asian market, which contracted by 20%.

An accompanying contraction of 4.7% in the European market was only offset by solid 6% growth in North America.

The BNIC figures were borne out by LVMH's third quarter results reported earlier this week, which showed strong growth for Cognac. Sales were up 23% in the third quarter, driven largely by an explosion in demand for the group's flagship Hennessy brand in China.