The term brandy is derived from the Dutch word brandewijn, meaning 'burnt wine', which is how Dutch traders described it in the 16th century as they brought it to Northern Europe from its heartland in Southern France and Spain. Cognac is the most successful and celebrated style of brandy, and takes its name from the town in south-western France which lies at the heart of its delimited production area.

So, with Cognac's fortunes having once again changed for the better of late, and with the market witnessing strong growth across all continents and categories in 2006, according to the Bureau National Interprofessionnel du Cognac (BNIC), just-drinks has published this first edition of the global market review of brandy and Cognac.

In it we include a review of the market and examine some of the trends taking place in the sector. We provide an overview of the travel retail sector, with an interview from Duty Free Americas' director of liquor buying and merchandising Jon Bonchick. Plus we take a look at shipment levels, Cognac hybrids, pricing trends and competition within the sector.

The report also includes forecasted Cognac sales (by volume) and by region to 2011, plus comment from some of the key executives in the industry, such as Distell managing director Jan Scannell and Bacardi global duty free marketing director Gary Chau.
Each producer profile includes a chart breaking down their regional % sales and offers a look into their latest movements in the market.

Chapter 1: Sector overview - We take a brief look at the history of brandy, and include market size data (total non-Cognac sales by volume by market, 2002, 2005-2011) and trends, such as Cognac's resurgence and the increase of shipping levels.

Chapter 2: The changing environment - This chapter provides further information on trends in the sector, such as greater competition and producer focus, pricing trends, Cognac hybrids and the decline of Armagnac.

Chapter 3: The markets - This extensive chapter looks at the market in a number of countries including France, UK, Germany, Russia, the US, Mexico, China, Japan, Brazil and South Africa and includes Cognac sales forecasts to 2011.
Exclusive interviews with Rotkäppchen marketing director Peter Claussen, Martell's Eric Benoist, BNIC director Alain Philippe and Christian Liabastre of Rémy Cointreau are also provided in this chapter.

Chapter 4: Favourable travel retail trends - Travel retail exclusive products have become a key strategy for duty free operators and suppliers alike. In this chapter we talk about these products, for example the Hennessy travel retail product entitled the Exclusive Collection. We look at the positive trends in North America, and we discuss how many newly wealthy Mainland Chinese are traveling for the first time and how this could affect the travel retail spirits category.

Chapter 5: Producer Profiles - In this chapter we provide information on manufacturer developments and include comment from industry executives such as:

• Rémy Martin brand manager Christian Liabastre;
• Martell marketing director Eric Benoist
  and
• Larry Plawsky, Beam Global Spirits & Wine's vice-president global marketing, Courvoisier, Sauza and Starbucks.

Regional sales' shares are also included for Hennessy, Rémy Martin, Martell, Courvoisier, Camus, Otard, KWV and Distell.

Chapter 1 Sector overview
Brandy’s rich heritage and diversity
Market size
Cognac’s resurgence
Healthy shipment levels

Chapter 2 The changing environment
Greater producer focus
Greater competition
Inventories
Pricing trends
Contemporising Cognac through hybrids
Armagnac’s continued weak performance

Chapter 3 The markets
France
UK market improves
Germany
Mixed picture in Scandinavia
Russian Cognac market emerges
Spanish suppliers look to rejuvenate brandy
Strong premium trends in US
Mexico trades up
Brazil, Bolivia and Colombia brandy gains
Conhaque gains in Brazil
Domecq dominates in Colombia
Pisco’s phenomenonal growth in Peru and Chile
Peru
Asia
Cognac sales explode in China
Taiwan’s faddish market
Other emerging Asian markets
Japanese malaise
Other markets: South Africa

Chapter 4 Favourable travel retail trends
Mainland travelling Chinese
Positive trends in North America
Travel retail exclusive products proliferate

Chapter 5 Producer profiles
Hennessy builds upon its dominance
Rémy: Showing off its premium qualities
Improving distribution
Martell’s premiumisation strategy pays off
New era for Courvoisier
Camus aims to restore luster to Cognac
Otard looks towards global re-launch
KWV moves to sharpen its marketing side
Distell dominates South African market

List of figures
Figure 1: Value share of leading Cognac distributors in Russia, 2006 (% share)
Figure 2: Volume share of leading Cognac distributors in Russia, 2006 (% share)
Figure 3: Leading brands in US domestic market by share in 2006
Figure 4: Leading travel retail brands by % volume share in 2005
Figure 5: Hennessy – leading markets as a share of sales and total volume sales, 2006 (% and nine-litre cases)
Figure 6: Rémy Martin – leading markets as a share of sales and total volume sales, 2006 (% and nine-litre cases)
Figure 7: Martell – leading markets as a share of sales and total volume sales, 2006 (% and nine-litre cases)
Figure 8: Courvoisier – leading markets as a share of sales and total volume sales, 2006 (% and nine-litre cases)
Figure 9: Camus – leading markets as a share of sales and total volume sales, 2006 (% and nine-litre cases)
Figure 10: Otard – leading markets as a share of sales and total volume sales, 2006 (% and nine-litre cases)

List of tables
Table 1: Total non-Cognac sales by volume by market, 2002, 2005-2011 ('000s nine-litre cases and %)
Table 2: Europe factfile for shipped Cognac
Table 3: Americas factfile for shipped Cognac
Table 4: Asia factfile for shipped Cognac
Table 5: Global Cognac shipments in 2006 (millions of equivalent bottles and % change)
Table 6: Total Cognac sales in France, 2002, 2006-2011 by volume ('000s nine-litre cases)
Table 7: Total Cognac sales in the UK, 2002, 2006-2011 by volume ('000s nine-litre cases)
Table 8: Total Cognac sales in Germany, 2002, 2006-2011 by volume ('000s nine-litre cases)
Table 9: Total Cognac sales in Russia, 2002, 2006-2011 by volume ('000s nine-litre cases)
Table 10: Total Cognac sales in the US, 2002, 2005-2011 by volume ('000s nine-litre cases and %)
Table 11: Total Cognac sales in Mexico, 2002, 2005-2011 by volume ('000s nine-litre cases and %)
Table 12: Total Cognac sales in Mainland China, 2002, 2006-2011 by volume ('000s nine-litre cases and %)
Table 13: Total Cognac sales in Taiwan, 2002, 2006-2011 by volume ('000s nine-litre cases and %)
Table 14: Total Cognac sales inJapan, 2002, 2006-2011 by volume ('000s nine-litre cases and %)
Table 15: Travel retail shipment volume for Cognac, worldwide 2002-2006 (m bottles)