Global FY Cognac sales, volumes slide as China woes bite - figures
Cognac sales have been hampered by the category's performance in China
Global Cognac sales by value fell by 11% last year as the industry continued to feel the impact of government measures in China, according to latest figures.
Sales slipped to EUR2.1bn in the 12 months to the end of December, trade body the Bureau National Interprofessionnel du Cognac (BNIC) said today. Volumes were also down, sliding by 3.6% to 115.6m bottles.
Nevertheless, the results signalled signs of recovery with volumes for the period August-December at the same level as 2013, the BNIC said.
The downturn in Far East markets for Cognac, seen in 2013, accelerated last year in the light of "an anti-extravagance policy and market normalisation in China," the trade group said. Full-year Cognac volumes in the region - covering South Korea, Hong Kong, Malaysia, Singapore, Taiwan, Thailand, China and Japan - fell by 17.4%, while sales were down 21.6%.
Major Cognac producers operating in China - Pernod Ricard, Remy Cointreau and Diageo - have all seen struggles in the country of late, due to the anti-extravagance measures.
However, the US, Canada and Mexico were bright spots with Cognac volumes and value increasing by 12.2% and 7.9% respectively. The US was the leading destination with 59.9m bottles shipped.
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