Cognac reports record export growth
The Bureau National Interprofessionnel du Cognac (BNIC) has reported record export growth for Cognac across both value and volume.
In 2018, Cognac exports were up 2% in value and 2% in volume, with 204.2 million bottles of Cognac exported in total throughout the year, resulting in a turnover of 3.2 billion Euros.
The positive results mark the fourth consecutive year of growth for the appellation, which exports nearly 98% of its total production.
The BNIC said a “dynamic performance” across all markets, driven by the expansion of the NAFTA zone and the Far East, was key to the "record growth".
“With 90.6 million bottles exported in 2018 - up 5.2% in volume and 0.7% in value, the NAFTA zone continues to perform well and leads the way in Cognac exports (44.4% of total exports), said the industry body.
The US continues to be Cognac’s largest market with 87.4 million bottles exported in 2018.
Over the same period, exports to the Far East reached 60.1 million bottles (29.4% of total exports - up 5.6% in volume and 3.7% in value). The contribution of the progression of exports in China (24.2 million bottles) and Singapore (27.2 million bottles) has led to these positive results, according to the BNIC.
Adversely, European exports declined - down 5.3% in volume and 2.2% in value, equating to total shipments of 39.4 million bottles - a decline the BNIC said reflected “difficult political and economic times on the continent”.
The export of VS (accounting for half of all cognac shipments) and VSOP (nearly 40% of all cognac shipments) continued to grow in volume - up 2.6% and 3.5% respectively, but recorded a slight 0.3% decline in value.
Representing 11.5% of shipments, the old categories witnessed 7.5% volume growth and 6.3% value increase.
The BNIC said the progression of exports in zones with strong potential - South Africa, Vietnam, Caribbean, continued in 2018 both in terms of volume (up 10.4%) and in value (up 7.1%).
In addition, these new areas of opportunity represented more than 6.9% of global volume shipped or nearly 14.1 million bottles, it added.
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