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A word or two about ...Packaging , marketing and more

Walking the aisles of VINEXPO in search of cognac by Robert Stansfield, RSI

VINEXPO is billed as one of the leading International trade wines and spirits exhibitions in the world. 2400 companies from 41 countries took space and even some of the worlds luxury fashion brands including Cartier, Salvatore Ferragamo, Hermes and Louis Vuitton felt it necessary to be there.

The organisers expected 53.000 visitors from 130 countries during the week’s event.

Of course the majority came to talk wine – cognac did not get a look in and none of VINEXPO’s marketing programmes listed in the organiser’s official guide catalogue mention cognac.

So, it was interesting to note that LHERAUD - one of the first cognac houses to make an impression - which was opposite the Swiss pavilion and away from the main cognac contingent. This also happens to be – in my opinion - one of the most marketing aware companies in the industry. Selling to the House of Lords, Harrods and other quality outlets around the world LHERAUD’s presentation, bottles, labelling and promotional material is streets ahead of the majority of cognac producers.

Although I believe that the XO Charles V11 bottle top is a mistake, it certainly stands out from the average and the mundane if well - intentioned amateurish efforts seen in many of the smaller producers marketing. LHERAUD’s vintage cognac bottle and labelling more than makes up for it (see pictures). The company won the Wines and Spirits International magazine awards for the best spirit bottle design in 1996.

Their export manager François Rebel told me that "VINEXPO was just necessary to be there." They were looking for contacts for the USA and Chinese markets and were pleased with the response, particularly from their Vieux Millenaire product launched at the show.

Like every other cognac house, they suffered from the Asian crisis, but unlike many, LHERAUD went out and marketed themselves in Europe and received encouraging sales from Germany, Italy and the UK. Although he would not disclose sale figures Mr Rebel confirmed that 85% of the company’s production is exported. "People are looking for quality, traditional products presented in a style that reflects the values of the product," Mr Rebel said. Their best selling products are the vintage cognacs where they print the actual date of the product on the label; something the whole industry should take note of. Why on earth other producers of single cru’s refuse to date their products is beyond me, don’t they understand that consumer’s looking for a quality, aged cognac will always be attracted by the actual age.

There was no official cognac area at the exhibition, but Poitou-Charentes organised several stands under the regional banner which at least gave some cohesion to an otherwise lack-lustre effort from the industry to promote cognac as a drinks brand at such an important world trade event

Amongst the smaller producers in this area where Chapelle Sonneville an association of five producers. Apart from their topette shaped bottle, the range of products was largely anonymous on a corner site, which had nothing to differentiate it from many other nondescript stands. Unsurprisingly, they were one of the few who felt that the show was poor as they had received a disappointing reaction from potential buyers.

Bernard Boutinet on the adjoining corner was equally anonymous, however his stand sited on a main isle had naturally received more foot-fall. His bottles and labelling had at least a little something about them and his logo design - of a carriage - although nothing original stood out well enough. Mr Boutinet had a lot of interest, particularly from Africa, France, UK and the Netherlands. Again the biggest interest was in the vintage cognacs. The company was also launching a new product "Coeur De Fins Bois" with no tannin in it. An interesting idea of producing cognac. Mr Boutinet is a typical example of a small cognac producer, who’s expertise lie in the making of the product, but has little or no idea how to market the stuff. With no POP, literature or display to explain the difference to the buyer, his new product stands on a nondescript counter with only the pale liquid to make it stand out from the rest of the products. When asked, Mr Boutinet was not sure what a press release was and said that he really needed to get round to making a leaflet about the new product, when he had some time. He paid 30.000F for a small stand and believes – mistakenly - like many others that the price is too high and feels – rightly - that the small producers should get more help and encouragement from the cognac governing body the BNIC, who were noticeable by their absence at the exhibition.

Ragnaud-Sabourin and Paul Giraud like other small quality producers confirmed that there was much more interest in the higher end products. "People are looking for real quality" said Mdm Patricia Ragnaud-Sabourin, who’s company was launching a new 100 year old cognac retailing at around 5.000F, presented in a wooden box with a signed decanter. Great product, good decanter, but a pity about the box, which was a sample, with what looked like a poor piece of leather on the top. Again - another example of disappointing marketing letting them down - which is endemic in the industry.

At the other end of the scale Camus - who told me they are the 5^th largest brand globally – was also happy with the reaction. They believe that there is a strong potential for their design and development of gift items.

Hardy’s spokesman confirmed "they can not afford to be away" and he also said that the response was positive, whilst A E DOR outlined that the Asian market was indeed still alive, but that they had to develop new products to attract a more price conscious buyer. They confirmed that they had maintained their interest in the market by producing new Brandy products, which allowed to company to offer more attractive prices. A E DOR also confirmed that the XO qualities where what most buyers were looking for and they have launched an XO under the label of Louis Battet, a brandy product which retail’s at three times less than the cost of an equivalent cognac XO.

Françoise Lapayre at Rémy Martin said they were very pleased with Asian market enquiries, but said that they had to work on the principal of giving more information to the customer at POP. "We must be able to tell a story about the product" she said and confirmed that she is working with the BNIC to develop below the line promotional and display material as an aid to help the industry increase awareness.

One of the more interesting stories came from Audoin de Dampierre cognac.

Mr Dampierre - who has just bought back his family home, in the cognac region after a two year struggle, negotiating with other family members - told me that Romel stayed at this family chateaux during the second world war. When the Germans arrived in the area the cellar master walled up part of the cellar to protect at least some of their product of cognac. The German’s took everything, except what was hidden, which had laid undiscovered until recently, when they had to make roof repairs and found it by accident.

The company asked Nicholas Faith to taste it and he confirmed that it was indeed a very fine 60-year-old cognac. Mr Dampierre sells this limited amount for 8000F per bottle and has only sold 60 bottles in two years, but is in no rush to get rid of it. Apparently the Dampierre family is more known for their champagne and has associations with that region for over 700 years – they have only been purveyors of cognac since the 17^th century selling privately and to the French aristocracy. However, the company has for the past two years developed cognac products for the top end of the market.

When asked what he thought about the cognac industry Mr Dampierre said "that in my opinion it needs a leader – someone who can give it a higher profile, focus and direction."

Unfortunately of course he is right and unless someone takes a lead, or the BNIC gets it’s marketing act together, the industry - with the exception of a notable few - will decline even further.

Bordeaux, 14 -18 June 1999

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