2013 spirits cognac

8/13/2019 2013 Spirits Cognac

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Slow and steady boil = preference for modern gas burners vs wood

Key Production Decisions: Lees - dead yeast cells that are either removed (Martell method) or left with the wine

(Remy method). Result with lees: richer mouth feel, greater intensity; better suited tolong ageing. Without lees: 'lighter', 'purer' style of spirit.

Heads and Tails - redistil or not? Divert back to wine (Martell method) and the ABVrises significantly. The result is less congeners and a lighter flavour is produced. Divertback to brouillis and you get a richer eau-de-vie. Hennessey does a little of both.

Vintage variation - adaptation required to account for vintage variation.Maturation 2 YEARS - Must be matured in oak

350L barrelsWood: Limousin (Q. robur) - bigger grained

Troncais (Q. sessiliflora) - tighter grainedToasting will influence flavourBarrel rotation - new spirit put into new barrels (6-12 months)

Some ageing may be as long as 50 yearsWarehouse location - humidity influences maturationOak chips - used to flavour spirit, but not for premium products

Blending / Finishing Caramel is permittedFiltering used for high-volume productsAvoid sudden reduction (soapy flavours)

5 WWhatWhere

Why

When

Who

4 PProductPricePlacement



Promotion

SWOTStrengths Almost all of the product is exported to a diverse range of countries.Weaknesses Cost, exchange rates, awareness. Premium Cognacs can be excessively over-priced, scaring

away the average consumer. Most consumers aren't aware of variations that might exist withCognac. Variations in exchange rates expose any company when all of their product isexported.

Opportunities Super-premium market, especially in places like Asia and Russia.Threats Premium prices on bulk wines may drive up the basic cost of base wine(s).

3T Past 1600s - Dutch began distilling to conserve them (and possibly reduce any tariffs based onvolume)

Creation of 'Brandwijn' (burnt wine), diluted with water on arrival17th century: intro of double distillationBritish & Irish demandPhylloxera = 1871, loss of about 2/3rds of vineyards.Loss of substantial market share to Scotch

Present Currently around 78,000 haFuture Continued expansion into Asia and other unique markets for more rapid growth

Promotion of brand / quality image in stable markets (US, UK, Russia)Trade Structure

Legal Structure (AOC) 1936: AOC awarded to CognacCompliance with these standards is monitored by the Bureau National Interprofessionnel duCognac (BNIC), established 1946.Plenary Assembly: BNIC decision body. 34 members (one vote each) - 17 represent growers,17 represent Cognac firms.

Grapes: Ugni Blanc, with others allowed to a max 10%Winemaking: SO2, must enrichment and screw presses all banned Distillation: Double distilled in direct heated Charentais copper pot stills by March 31

Max spirit = 72.4% ABVMaturation: oak containers, producers may use oak chips, caramel and sweetenersA Cognac made from grapes harvested in 2010 became one year old on April 1, 2012.

Labelling: Cru name: 100% of grapes from said cru Fine Champagne : min 50% Grande Champagne; with Petite Champagne for balance *** (3-star) or VS (Very Special) : youngest spirit is a min 2 years old VSOP (Very Special Old Pale), Reserve : min 4 years Napoleon, XO (Extra Old), Extra, Hors d'Age : youngest eau-de-vie is 6 years (in 2016,

raised to 10 years)

Similar trademark issues as Champagne



Market Size 168 million bottles per yearQualite Superiures: 94MM bottles (56%)***, VS: 74MM bottles (44%)

Market ValueBottles sold 168 million bottles per yearPrimary Markets 97.5% exported. Only 2.5% stays in France

Million bottles: US (50), Singapore (30), China (25), UK (10), Germany (6,5) = 121.5 (73% of168 MM total)Near double-digit jumps in China, Hong Kong, Singapore

Trends VS & VSOP account for about 80% of the market.Companies

Top 10 Companies Top 4: Remy Martin, Hennessey, Martell (Pernod Ricard), Courvoisier (Beam Global)Others: Camus, Armagnac Delord, Darroze Armagnac, Godet Frères, Rémy Cointreau

Market Share Configuration of market similar to Champagne: Big Cognac houses with financial clout haveoptimized the Cognac-making process.

Recent NewsTasting Notes

Appearance

NosePalate Low alcohol

High acidUgni blanc = bland. Concentrated / distilled = grapey floral character

Indicators of quality Assessment notes

Additional NotesMisc info



Links: http://www.in-luxe-travel-france.com/art-de-vivre/cognac-a-french-lifestyle.htmlhttp://www.cognac.fr/cognac/_en/modules/cognac_glossaire/cognac_glossaire.aspx



COMPANIES KEY PLAYERS

Remy Martin

http://www.remymartin.com/

Owned by Remy Cointreau, associated with Louis XIII (worth about $2800 at the LCBO).

Promotion: Robin Thicke (including VSOP Limited Edition), Cannes Sponsorship

History:

1724: The history of the House of Rémy Martin is one of a family, the family of five generations of vintners and cognacs drivenby the same ambition of exception capture the heart of the Cognac.

1898: Paul Emile Rémy Martin the 5th generation,creates his prestigious Coupe Fine Champagne.

1927: Launch of Rémy Martin Fine Champagne Cognac VSOP : an immediate success based on one differentiating point,superior quality.

1948: From 1948, Rémy Martin decides to blend 100% of its cognacs from Petite Champagne and Grande Champagne, the twocrus at the heart of the Cognac.

1981: XO Excellence

2005: Intro of winegrowers partnership. 2/3rds of vineyards become part of Alliance Fine Champagne.

Today: remains family owned. Dominique Hériard Dubreuil is the first and only woman to operate a Cognac house.

Second biggest market share after Henessey (LVMH)

From Financial Report (Remy Cointreau):

Rémy Cointreau’s sales for the six months to 30 September 2013 were €558.0 million, an organic decline of 3.6% compared withthe same period the previous year, during which strong growth of 13.3% was reported. Although the Group maintained a strongmomentum in the US and Europe, this did not offset the slowdown recorded in China.

Current operating profit was €132.7 million, an organic decline of 7.3% compared with hi gh comparative figures in 2012, duringwhich 18% growth was achieved. The current operating margin improved slightly to 23.8%, compared with 23.7% for the sameperiod last year.

Rémy Martin

The 10.4% decline in sales to €327.2 million reflected the unfavou rable situation in the Chinese market for imported spirits,which was not offset by the growth noted in the Americas and Europe regions. The temporary slowdown in sales momentum in



China, which does not in any way detract from the brand’s fundamentals, did not constrain the House of Rémy Martin’s

strategic and targeted investment in this region.

Current operating profit totalled €116.1 million, a decline of 11.7%. The current operating margin was 34.5%, virtuallyunchanged from the 34.9% level recorded in the previous period. This performance was a result of maintaining a high grossmargin, increased targeted marketing investment and strict control of both the structure and distribution costs.

Liqueurs & Spirits

Sales totalled €120.4 million, an increase of 10.2% compared with the previous period, with all regions recording growth.Cointreau grew in the US and other countries in the Americas region, as well as in its key European markets. Metaxa, Mount Gayand St-Rémy all performed well over the first six months of the financial year. The single malt Scotch whisky, Bruichladdich,acquired in September 2012, continued its expansion within the Group’s network.

Current operating profit increased by 2.6% to €20.9 million, with maintained high levels of marketing i nvestment. The currentoperating margin was 16.0%, compared with 17.2% for the same period the previous year. Excluding Bruichladdich, currentlybeing integrated into the network, the margin would have been 18.1%, an increase of almost 1 percentage point.

Partner Brands – The 6.0% increase in sales was due, in particular, to the solid performance of the Scotch whisky brandsdistributed in the US. The divisional operating profit was €4.5 million, compared with €2.3 million for the same period last y

In an uncertain economic environment in Europe and against the backdrop of a sharp slowdown in China, which remainsimpacted by high inventory levels in distribution and poor short-term visibility, the business environment will be less favourablein the second half of the year. This situation will adversely affect the full-year current operating profit, which is expected torecord a substantial double-digit decline at the end of the financial year, following many years of sustained, steady growth.Nevertheless, the Group remains confident in its medium and long-term outlook in Asia, particularly in China, where itsdevelopment potential remains unaffected.

Rémy Cointreau is resolutely pursuing its strategy of developing its upmarket brands and creating long-term value. Due to thequality of its brand portfolio, supported by targeted investment, continued resolute innovation, the qualitative strengthening ofits distribution, and strict cost control, the Group is confident in the capacity of its value adding model to bring about a return to

steady growth.

Hennessey

Part of LVMH, luxury goods and alcohol supplier.

Founded : 1765

► Hennessy pays tribute to 40 years of hip-hop ► Hennessy Prize for Literary Journalism ► A behind-the-scenes look at LVMH wine and spirits estates

1765: Irish aristocrat Richard Hennessy, who had been serving in the French forces, founded an eaux-de-vie trading business inCognac. Under his son James, the company expanded rapidly.

Hennessy is a leader in cognac, selling 50 million bottles a year around the world. Its V.S, V.S.O.P, Privilège, X.O, Paradis andRichard Hennessy are the pillars in a range of products that are both benchmarks of excellence in the world of cognacs and iconsof refinement and luxury.

40% of world's Cognac; 50 million bottles per year.

Promotion: focusing on younger audience, particularly rappers and hip-hop.

http://www.lvmh.com/lvmh-news/news/hennessy-pays-tribute-to-40-years-of-hip-hop



http://www.lvmh.com/lvmh-news/news/hennessy-prize-for-literary-journalism



http://www.lvmh.com/lvmh-news/news/a-behind-the-scenes-look-at-lvmh-wines-and-spirits-estates








Collector bottles

Literary awards

Martell (Pernod Ricard)

1988: Sold by Firino-Martell family to Seagram

2002: Sold to Pernod Ricard Group

Most of Martell production is from the Borderies region of Cognac. Resulting Cognac = more nutty.

The history of Martell & Co dates back to 1715, when Jean Martell founded the company with the wish to produce only thehighest quality in cognac. With the legendary bottles Martell Cordon Bleu, Martell Extra L’Or de Jean Martell and the recentCréation Grand Extra from 2007, the company strongly implanted itself in the luxury goods market. It belongs to Pernod Ricardand has sales of around 15 million liters every year. The most precious eaux-de-vie, some of which date back to 1830, are storedin a secret location in the cellars of Jean Martell - approximately 1,6 million 9 liter cases!

When Jean Martell, the founder or the cognac house, died in 1753, Gatebourse, the first site of Martell production had alreadybecome the center of an aspiring business and a pr osperous future. Jean’s two sons Jean and Frédéric would continue what

their father had begun. In the later half of the century, they would be exporting 200.000 liters of cognac to Britain. In thefollowing century, around 1842, Martell started targeting the Chinese market and opened up export activities to the Far Eastfrom then on. The introduction of Martell Cordon Bleu in 1912 had a huge impact on the company’s success. It has since

become one of the most loved cognacs worldwide.

In 2001, Martell & Co joined Pernod Ricard, who had just taken over a large part of the spirits company Seagram. Later on, in2005, Pernod Ricard acquired over half of d’Allied Domecq and finally the champagne labels Mumm and Perrier -Jouet joined well, turning the group into: Martell Mumm Perrier-Jouet. Like many similar brands, Martell needs to place itself in line with theluxury labels. The company concentrates on its top-of-the-line products such as Martell XO or Martell Création Grand Extra2007. These products were introduced to the market with large campaigns, resulting in a boom of the premium products. Itsmost important markets are China, Singapore, Malaysia, Taiwan, USA, Britain, Russia and Mexico. The annual volume in terms of

sales has been estimated to lie around 15 million litres, with a growing tendency.

Martell’s Cellar Master Benoit Fil continues to treasure the company’s secret of blending in the tradition of handing down thexpertise from generation to generation. The most precious eaux-de-vie, some dating back to 1830, are stored in a cellar called“Paradis”, which has a secret location in the cellars of Jean Martell.

Famous fashion photographers Paolo Roversi and Miles Aldrige have shot Martell’s Cordon Bleu campaigns. Like many

companies nowadays, Martell is engaging in supporting the arts by handing our generous prizes to living artists. The essence ofthe prize lies in the origins of Jean Martell’s spirit: to be independent and inspired. Martell Création Grand Extra was laun che2007, its beautiful bottle was designed by the sculptor Serge Mansau.

Martell achieves almost 100% of its sales through export. Only a small fraction gets consumed in France.

Martell published a book called “L’Or & l’Art”, which writes the history of the exquisite bottle L’Or de Jean Martell, drawing alink to the arts and crafts surrounding gold.



Courvoisier (Beam Global)

Although no evidence has been found to indicate that Courvoisier cognac was the favorite drink of Napoleon Bonaparte, whodied in 1821, before Courvoisier was officially established by Felix Courvoisier in 1835, the company website claims thefollowing:

The origin of our history goes back to the beginning of the 19th century with Emmanuel Courvoisier and his associate,Louis Gallois, running a wine and spirit merchant company, in the Parisian suburb of Bercy. In 1811 Napoleon visitedtheir warehouses in Bercy and he was hosted by Louis Gallois, the Mayor, and Emmanuel Courvoisier. Legend has it that

Napoleon I later took several barrels of cognac with him to St Helena, a treat much appreciated by the English officerson the ship who named it 'The Cognac of Napoleon'.

In 1909, the company was run by the Simon family which began to develop the brand's global reputation.[1] In 1964 Courvoisierwas acquired by the Canadian spirits group Hiram Walker. Hiram Walker was then acquired by Allied Lyons in 1986; whenPernod Ricard acquired Allied Domecq, Courvoisier was divested to the holding company Fortune Brands, which spun offvarious product lines in 2011 to form the spirits company Beam Inc.

The legendary history of Courvoisier cognac goes back to the early 1800s, when Felix Couvoisier and Jules Gallois founded awine merchant’s business in Paris. S oon after, they figured out that cognac was their true passion and they moved theirbusiness to Jarnac in the heart of the Cognac region to start up Courvoisier in 1828. When Napoleon was exiled to Saint Elena heordered several barrels of cognac to take with him. Following this sign of appreciation, Courvoisier would start supplying theroyal courts of Denmark, England and Sweden as well as the Imperial Court of Napoleon III. In fact, Courvoisier attained theofficial title of “official supplier to the Imperial Court” in 1869.

Felix Courvoisier died without a son, so his nephews and their families continued the cognac tradition until the early 20thcentury when the English family Simon bought the cognac house. The Simons created a strong international brand identity witha new logo of the silhouette of Napoleon for the bottles.

Courvoisier re-launched its famous Josephine bottle and invited legendary fashion designer Vivienne Westwood to design thebottle. The company continues to introduce such innovative collaborations, strengthening a unique position amongst

competitors such as Rémy Martin, Hennessy or Martell.

In 2007 Courvoisier Napoleon Fine Champagne won a double gold medal at the San Francisco Spirit Awards and in 2009Courvoisier Exclusif won the Best Overall Cognac Award at the same prestigious awards.

In 2006 Courvoisier was the first luxury spirits label that launched a perfume, a men’s fragrance called “L’Edition Imperiale”.

2011: Market share in the UK is about 68% of all VS Cognac sold, making it the largest.

2011: Cognac overtakes Whisky in terms of total sales.

Sales are roughly 280,000 9L cases per year.

http://www.scoop.it/t/cognac-news



COGNAC GLOSSARY

Ageing Count While they age, Cognac eaux-de-vie are closely watched by the BNIC in their "ageing count". Neweaux-de-vie are registered on April 1st following the harvest as count 0; the following April 1st, after ayear of ageing, they are placed in count 1, and so on until count 10*. All eaux-de-vie over 10 years*old are grouped in an Ageing Count 10*. Count "00" is a "distillation count". It corresponds to theperiod between the eau-de-vie's production and the following March 31st.In terms of blending, the mix that is obtained is classified in the ageing count as the youngest eau-de-vie entering the blend.

The BNIC is in charge of the control of ageing counts (Ruling of July 27, 2003). *Created since April 1st,2005.Ageing Cognac is an evolutional product. During the time it spends in oak casks in identified cellars, it absorbs

the characteristic features of the wood, acquiring its own color and final bouquet.Cognac only ages inwood, in the oak casks stored in specific cellars reserved for it, and it maintains the age it had when itwas dispatched. Cognac cannot be sold for direct human consumption except after an ageing count 2.

Ageing Cellar Place where Cognac eaux-de-vie are stored in oak casks for their ageing.Ageing Mention Acronym or mention that is displayed on a Cognac label and that provides information on the

youngest eau-de-vie contained in the blend (i.e.: VS,VSOP,Napoléon, XO ).Agronomic Yield Total yearly yield by hectare, or the relation between total production of an exploitation and the

surface in production. In the Delimited Region, this yield is calculated based on the variousdestinations: Cognac white wines, other white wines, red wines.

Alcohol Ethyl alcohol or ethanol: colorless liquid that boils at 78ºC and solidifies at 112°C, obtained bydistillation.

Alcohol Content Relation between the volume of pure alcohol (measured at the reference temperature of 20ºC)contained in a hydro-alcoholic mix and the volume of this mix taken at the same temperature.Expressed as "%vol.".

Authorized Depositor Any individual who produces, transforms, holds, or dispatches products containing alcohol for theircommercialization (Wine Grower, Distiller,Cognac Company).

Black Rot Disease that only attacks at certain times of the year, and well controlled by the protection againstMildew and Oidium.See also "Vineyard Illnesses".

Blending Traditional elaboration technique of marketable Cognacs.Composition that combines the specific qualities of eaux-de-vie de Cognac of different harvest yearsand of different Cognacproduction areas with the aim of obtaining a homogenous and constant blendthat is unique to each Cognac Company and seeked by international customers.

Blooming Stage in the vine's evolution when the flowers bloom.BNIC Bureau National Interprofessionnel du CognacBoiler - Part of the still that contains the wine or brouillis. In French may be referred to as "chaudière" or

"cucurbite".- Sometimes also used to designate the still itself.

Boiler Wine White wine destined for distillation.Bois Ordinaires One of the six growth areas of the CognacDelimited Region.Bonne Chauffe Also known as "Second Distillation". The distillation of the so-called "brouillis" will produce the

Cognac eau-de-vie.Bons Bois One of the six growth areas of the CognacDelimited Region.Borderies One of the six growth areas of the CognacDelimited Region.Botrytis Also known as Grey Mould, this fungus spreads through the vines as they mature with the Autumn

rain. When a harvest is hit with this disease the vines become fragile and marked with a fault thatworsens with time. Fortunately, the Ugni blanc variety is not very sensitive to this illness and itsstrength limits its recourse to treatments.See "Vineyard Illnesses".

Brandy (from the Dutch brandwijn - burnt wine)Alcoholic beverage:- obtained from wine eaux-de-vie, that may or may not be blended with a wine distillate;

- that ages in oak containers for 1 month to 1 year, or for a minimum of 6 months if the capacity of



preparation of certain champagnes.Coil Part of the still. It is located after the swan neck and passes through the cooling tank.Collective Cellar Place where wine growers or Cognac companies store the Cognac eaux-de-vie.Colombard One of the white grape varieties authorized for Cognacproduction, but not extensively used these

days.CompulsoryDistillation

Compulsory distillation established by the OCM (Article 27 of Regulation (EC) 1493/99)Compulsory distillations are a qualitative aim and concern all types of wines. In order to avoidsurpassing marcs and the excessive filtration of lees, producers must deliver all vinification sub-products (marcs and lees).

ConfederationPaysanne

Trade union of wine growers of the Cognac Delimited Region.Professional trade union for wine growing represented in the BNIC, from now on regrouped withinthe SGV or the SGVDC.

Continuous Press Tool that can be used to press the grape and extract its juice.The use of the continuous press (Archimedes' screw press) is forbidden is the Cognac Region (Decreeof May 15, 1936).

ControlledAppellation

The AOC mention identifies a raw or transformed farm product that draws its authenticity andtypicality from its geographical origin. Cognac is an AOC.

Cooling Tank Part of the still. Container filled with water that contains the coil where alcohol vapors condense.Co-op Group of wine-growers or distillers that pool their production.Cooperage Work that implies making casks for the ageing of wine eaux-de-vie. Charentais cooperage is the most

relevant in the world, and it exports a large part of its production.Coordination RuraleCharente

Professional trade union of wine producers represented in the BNIC, from now on regrouped withinthe SGV or the SGVDC.

CRD Capsules Représentatives de Droits (Rights Representation Label).Label carried on Cognac bottles where the fiscal stamp representing the consumption rights andcontribution are printed. The CRD replaces the "Movement title".

Crisis Distillation Voluntary distillation allowed by the OCM (Article 30). This measure may be carried out when themarket experiences notable disruptions due to an exceptional surplus of wine. Its aim is to reabsorbthem and to assure the quality of the supplies from one harvest to another.

Cutting 1 - Essential phase during the distillation procedure that consists in eliminating the "heads" and the"tails" of the eaux-de-vie.2 - In the Cognac region, synonym of Blending.

CVO Cotisation Volontaire Obligatoire (Mandatory Voluntary Contribution)Demi-John Large stoneware or glass bottle with a capacity for 20 to 50 liters, many times cased. When a Cognac

has reached its peak, the Cellar Master ends the ageing of the eaux-de-vie and transfers them toDemi-Johns, where they may rest in paradise for several decades in perfect condition.

Direct Vendor Individual that sells his/her own production. In the Region, they are referred to as Wine Grower orDirect Vendor.

Distillate During distillation, liquid that is obtained by the condensation of vapors in the coil.Distillation Action that implies separating with heat the volatile elements of a compound, and then condensing

them. The distillation principle is based on the volatility differences of the various compounds thatmake up the main elements of the bouquet. In the case of Cognac,distillation is performed followingthe traditional method of double heating (Decree of May 15th, 1936, as modified):

- Charentais traditional double distillation procedure- use of the traditional Charentais still of a total capacity not exceeding 30 hl, with a 25 hl load for theBonne Chauffe- maximum distillationalcohol content: 72% volume- distillation before March 31st of the year following the harvest.

Distillation Campaign In Cognac, period that takes place between fermentation and the following March 31st. The end ofthe official distillation campaign marks the changing date of the ageing count. Cognacs enter count 0on the April 1st that follows their distillation, and 1 year will remain. Cognacs in their ageing processpass to the next ageing count on the anniversary date (April 1st). Any eau-de-vie distilled after March31st cannot carry the CognacAOC (according to Decree of April 14th, 1988, as a modification toDecree of May 15th, 1936).

Distiller Professional distiller that purchases the wines that are ideal for the distillation of Cognac eaux-de-vieand then sells those eaux-de-vie or distills them for someone else.



Double Heating See HeatingDouble purpose The Cognac Delimited Region vineyard is currently planted with grape varieties that are said to have a

"double purpose". They are grapes of varieties that have been classified both as a wine grape varietyand as a variety for the elaboration eaux-de-vie of the Appellation of Origin.Wines that come from grapes not exclusively classified as wine grape varieties must be initiallyoriented to traditional destinations such as spirits or other markets.However, the end of the double purpose varieties is near, as they will most likely be replaced by theseparation of production of similar destinations.

Dust Mite Illness of the Charentais vineyard. Mite are tiny animals, improperly called "spiders" that can be eitheryellow or red, and that develop on the leaves of the vine and may cause serious damage whenpopulation is high. They can be successfully extinguished if protected against them or by introducingother type of predator mite that nourish on other dangerous mite. Other type of mite can cause plantstunting and the "tanning" of the leaves and the end of the season (acariasis), while others formblisters on the leaves during springtime, a very spectacular illness but without any incidence.See also "Vineyard Illnesses".

EARL Limited Liability Farming Company.Legal type of farming business:- Associates owning the majority of social assets (50% of the time must be dedicated to farming, and50% of revenue must come from farming);- A single farmer may create an EARL;- Threshold to pass to real benefits: 76 225 € ;

- Possibility of associating other non-parental members;- The responsibility of associates is limited to the 'sum' of their contribution.

Eau-de-Vie Alcoholic drink obtained by distillation. (i.e.: wineeau-de-vie, fruit eau-de-vie...).In the Cognac region, the term "eau-de-vie" is commonly used to designate cognacs in their ageingprocess, prior to their bottling.

Enrichment The addition of sugar, must, concentrate must, or rectified concentrate grape must in order toincrease the alcohol level.See "Chaptalisation".

Esca Disease of the wood for which symptoms appear in the summer months: the leaves acquire a brownand yellow color, and grapes wilt. The whole vineyard may be withered in a single day due to theheat. Protection with soda arsenite was forbidden in 2001, leaving fear for an explosion of death due

to this illness.See also "Vineyard Illnesses".Eutypa Disease Disease of the Charentais vineyard. Wood fungus that develops in the trunk of the tree. It penetrates

during the winter months through large wounds and causes the leaves' stunting, the grapes'disappearance and, in a few years, the death of the vine. Cognac is the most affected of the Frenchvineyards.See also "Vineyard Illnesses".

Evaporation The natural loss, in alcohol level and in volume, that Cognac experiences during its ageing. This lossaccounts for over 2% per year of the stock, which equals more than 20 million bottles.In the Cognac Region, this evaporation is poetically referred to as "The Angel's Share".

Excoriose Fungus that develops at the base of the branches and that destroys the buds. A new outbreak is beingsuffered in the Charentes area.See also "Vineyard Illnesses".

Exports They are made up by the Cognacexports + the uses.Extra In the Cognac Appellation, ageing term meaning that the youngest eau-de-vie of the blend has aged

for at least six years (Count 6).Fan Leaf Illness of the Charentais vineyard. The most common virus, spread through the soil by nematodes or

by plants. Professional nurserymen provide plants that are guaranteed to be healthy. The soil is keptfree of grapes in order to allow chemical disinfection. Affected vine stock show discoloration, leaf andbranch deformation, and lack of the berry set.See also "Vineyard Illnesses".

Fermentation The transformation of certain organic substances under the action of the enzymes secreted bymicroorganisms. The fermentation of sugars under the influence of yeasts is what creates alcohol.

Fine Comes from the French term "eau-de-vie fine".



In French regulations, term that evokes the quality, exclusively reserved for eaux-de-vie with the rightto bear a wine-growing (example: Cognac) or cider-growing (example: Calvados) appellation of origin.Generic spirits (example: brandy) cannot benefit from this title.

Fine Champagne AOC made of by a mix of eaux-de-vie of Petite and Grande Champagne, carrying at least 50% ofGrande Champagne.

Fins Bois One of the six growth areas of the Cognac Delimited Region.The mention "Fins Bois", or "Fine Fins Bois" on a Cognac label means that 100% of the eaux-de-vieused for its elaboration come exclusively from that growth area.

Folignan Variety born from the crossbreeding of the Ugni blanc and the Folle blanche. One of these varietieshas the right to bear the Cognac Appellation of Origin.

Folle Blanche One of the white varieties with the right to bear the Cognac Appellation. Quite used during thePhylloxera plague, it was replaced by the Ugni blanc since it became very sensitive to grey mould.

Forgery An imitation made to deceive (of a literary or artistic work, a manufactured product, a coin, etc.). Thefight against Cognac forgeries is a priority among the Region's professionals and one of the BNIC'sessential missions.

Fortified Wine Product- with an alcohol content not lower than 18% and not higher than 24%;- obtained exclusively by adding a non rectified product, coming from the distillation of wine and witha maximum alcoholic content of 86% vol., to a wine not containing residual sugar;- with a maximum volatile acidity of 1.5 grams per liter, expressed in acetic acid.For the application of Article 67, § 6 of EEC regulation 1493, Article 68, fortified wine may only be

used for distillation.FSVC Fédération des Syndicats Viticoles de Crus du Cognac (Cognac Growth Areas Trade Union Federation).

Professional trade union represented at the BNIC, previously regrouped in the SGV or the SGVDC.FVC Fédération des Viticulteurs Charentais (Charentais Wine-Growers Federation).

Professional trade union represented at the BNIC, previously regrouped at the SVG or the SGVDC.GAEC Groupement Agricole d'Exploitation en Commun (Farming group for joint exploitation).

Legal association group for farming exploitation:- made up of individuals of age;- similar to family exploitations;- a minimum of 2 associates and a maximum of 10 (a couple cannot establish a GAEC). All associatesmust be farmers;

- must adhere to the agreement of the Commission Départementale d'Orientation Agricole (CDOA -Farming Orientation Departamental Commission);- the associates' responsibility is limited to the sum of their contribution.

GFA Groupement Foncier Agricole (Agricultural Land Grouping).Legal form of association for farm exploitation:- has the aim of owning land and renting it to individuals or companies;- only produces farm goods;- allows maintaining the unity of patrimony.

Golden Cellar Term used to designate the cellars destined only for the ageing of Cognac eaux-de-vie de Cognaccirculating with the "acquit jaune d'or" certificate, which was eliminated in December, 1999.See "Identified Cellar".

Grafting Operation that allows propagating tress to fruits and flowers by the insertion of a plant from one partto another where you wish to develop the same features.From the end of the 19th century, the vines of the CognacDelimited Region use American stock that isresistant to phylloxera attacks.See also "Nurserymen".

Gradn Cru Mention that can be used in the presentation of Cognac eaux-de-vie de Cognac, subject to rulesdefined in a specifications sheet established to that effect.

Grande Champagne Or Grande Fine Champagne.One of the six growth areas of the CognacDelimited Region. The "Grande Champagne" or "GrandeFine Champagne" mentions on a Cognac label mean that 100% of the eaux-de-vie used for itselaboration come exclusively from that specific growth area.

Grape Caterpillars Discrete insects that place their eggs on the grapes. First generation insects only destroy a fewglomeruli, causing little damage, but the second or third generation insects lodge in the seeds of the



grapes, allowing the mould to be installed (see Botrytis).See also "Vineyard Illnesses".

Grape Leafhopper Insect of the Cicadellidae family: they feed on plant sap and can transmit plant viruses such as thered-leaf symptoms that can deteriorate the plant during warm periods.

Grape Variety Plant or variety of cultivated vine. Only certain varieties are authorized to be used for the elaborationof Cognac (Decree of May 15th, 1936). The most commonly used variety is Ugni blanc.

Grey Mould Illness of the vineyard, also known as Botrytis.Growth Area Distiller Wine-grower that distills or makes others distill his or her own production. By extension, wine-grower

with his/her own Cognac eaux-de-vie stock. A distiller may also be a Cognac direct vendor.Growth Areas Term generally used to describe the six geographical areas of the CognacAOC delimited

production area:Grande Champagne,Petite Champagne,Borderies,Fins Bois,Bons Bois, andBois ordinaires, Bois Communs or à Terroirs.

Harvest The harvesting of grapes destined to produce wine. Harvests may begin as soon as the grapes reachmaturity, normally at the beginning of the month of October in the Cognac region, and generally endand the end of that same month.

Harvesting Machine The harvesting machine first appeared in the Delimited Region in the 1970s. It underwent severalstudies in order to meet the demands of the Region's wine-growers. More than 90% of the harvestare now performed with the aid of a harvesting machine.

Heads During distillation, first part of the distillate that is placed in the alcohol meter. Since they are veryrich in alcohol, they are discarded.

Heart The heart is obtained during the Bonne Chauffe, once the heads and the tails have been discarded,and it is the part of the distillate that will become Cognac. The heart has a maximum of 72% volume.

Heating Also known as "Distillation". The Charentais distillation method is performed in two stages, that is,two distillations are performed: the first heating (wine distillation), and "la Bonne Chauffe" (thesecond seating, distillation or "brouillis").

Identified Cellar Cognac eaux-de-vie age in wood, in oak casks stored in specific and identified cellars. Bottled anddispatched in all cellars in France or in other locations, the Cognac maintains the age it had when it isbottled.

Imperfect After distillation, product that is not fit for consumption.See Phlegm

INAO Institut National des Appellations d'Origine (National institute on appellations of origin).According to Law of July 30, 1935, the recognition of AOCs and their regulations was entrusted to a

public institution: the INAO. Its body with voting powers, the National Committee, has the power ofproposing issues to ministries.

Interprofession Grouping of professions from an economic sector. The CognacInterprofession (BNIC) is made up ofwine growers and Cognac companies.

Jurancon One of the white grape varieties with a right to bear the Cognac appellation. This variety is no longerused these days for Cognacproduction.

Light Agreeable, pleasant to drink. Term that is applied to the taste impression of certain pleasant flavoredlight wines.

Lignin Organic substance that impregnates wood cells, fibers, and vessels and makes them impermeable,inflexible, and rigid. Lignin is the main component of wood.During ageing, it confers Cognac eaux-de-vie its organoleptic features.

Limousin One of the two main regions from where the oak wood for the elaboration of Cognac casks used to beobtained.Local/land 1- Land that is considered part of the production area of a characteristic production.

2- In the Cognac region, Production Area (Decree of May 1st, 1909).See "Controlled Appellation of Origin", "Delimited Region", "Growth Areas"

Mandatory Distillation Distillation allowed by the OCM (Article 28) of wines from varieties with a double classification.This measure is mandatory, permanent, and concerns almost exclusively the wines of the Cognacregion, produced in a Normally vinified quantity (QNV) for traditional uses:Cognac - Pineau - wine forconsumption.Alcohol that is obtained from the distillation of wines fit for AOCeau-de-vieproductionmust have atleast a 92% alcohol content so as to forbid subsidized production of eau-de-vie in this region.The distiller may either freely dispose of the alcohol, either deliver it with certain intervention, inwhich case it shall be sold for industrial uses. Volumes for this distillation vary based on the harvest,



this body also participate related professions of the Cognac field (nurserymen, coopers). The PlenaryMeeting is the decision-making body of the BNIC.

Potable SpiritDistillation

Voluntary distillation allowed by the OCM (Article 29). Its aim is to support the wine market byfavoring the supply of wine products from the potable spirit segment.

Pressing Action that consists in pressing the grapes to extract their juice.Producer In the Cognac Region, term that is generally used to designate wine growers, or direct vendors.Production 1 - Action of producing. Synonym of elaboration.

2 - In the Cognac region, this term can also designate the volume of white wine destined fordistillation, as well as the quantity of eau-de-vie obtained from distillation.

Production area It designates the geographical area determined by the Decree of May 1st, 1909 where all theproduction stages of the Cognac Controlled Appellation of Origin take place, as defined by the Decreeof May 15, 1936, as modified. The Decree of January 13, 1938 determined the list of cities that werebenefited from the regional controlled appellations of origin.

Pure Alcohol Cognac unit of measure, also widely used for alcoholic beverages.Ethyl alcohol or absolute alcohol:alcohol content: 100% volume. The pure alcohol volume is measuredat reference temperature 20 ºC. In statistical figures, it is normally expressed in hectoliters (hl AP).

QNV Normally Vinified Quantity.Cornerstone of the double purpose varieties. It designates volumes destined to different traditionalmarkets of the Delimited Region, and most specifically for Cognac. Fixed every year by InterministerialRuling and by the Interprofession's proposal. It is expressed in hl AP/ha since 1997.

Rancio Charentais term used to designate the complex and specific aromas originated from a long ageing inoak casks whose intensity increases with the years.

Reduction Method that consists in reducing the 40% alcohol volume of eaux-de-vie by progressively adding pure,distilled, or demineralized water.

Reserve In the Cognac Appellation, ageing mention indicating that the youngest eau-de-vie in the blend hasaged for at least six years (Count 6).

Rougeau or Red Leaf Disease of vines.It is a phytoplasm (related to viruses) that causes discoloring at the end of the season, grapedisappearance, and in the following year, the death of the vines. The grape leafhoppers feed on plantsap and can transmit the virus from one vine to another. The disease is such a terrible pest thatfighting against it is mandatory. It is based on the location of affected vines, their weeding, and usinginsecticide protection against leafhoppers.

See also "Vineyard Illnesses".SCEA Société Civile d'Exploitation Agricole (Civil Association for Farm Exploitation).

- must at least 2 partners, with no specification for the maximum number of partners;- farmer and non-farmer associates;- the general manager may not hold social participations;- one artificial person may be associated;- responsibility of members undefined (company goods + land under guarantee).

Scent Any olfactory sensation perceived directly.SCVS Syndicat professionnel des Courtiers en Vins et Spiritueux de la Région Délimitée Cognac (Professional

trade union of wine and spirit brokers of the Cognac Delimited Region).See "Syndicat professionnel viticole" ("Wine growing professional trade union")

Seconde French term used to designate the product that is obtained in the distillation process after the"heart".Select One of the white grape varieties with the right to bear symbolically (10% of the variety) the Cognac

appellation. This variety is no longer used for the production of Cognac.Semillon One of the white grape varieties with a right to bear the Cognac appellation. This variety is no longer

used these days for Cognacproduction.Setting Stage in the vine's evolution when the fruit that follows the flower is formed.SGV General winegrowers trade union for the defense of the Cognac AOC.

Professional winegrowers trade union regrouping the FVC, the FSVC, the Confédération paysanne andthe Coordination Rurale.See "Syndicat professionnel viticole" ("Winegrowers professional trade union").

Shipments The Cognac that is sent (in bottles or in casks) to other parts of France or other countries.Shook A small piece or set of pieces of sawn or sliced dimension stock for making the staves of casks.



See "Cooperage".Spirit Beverage with an alcoholic content higher than or equal to 15% vol. and that does not come from

fermentation.SQ See "Superior Quality".Stale Eau-de-vie Cognac eau-de-vie that has already aged for some time in oak casks.Standing Committee The BNIC's executive body, jointly made up by wine growers and Cognac companies members of the

Plenary Meeting.Stave Each of the long and curved pieces of wood that are assembled to form a cask.Stem The whole structure of the peduncle of a grape.Still Device used for simple distillation, employed in the elaboration of eaux-de-vie. It is always made up of

the following three elements:- the boiler,- the still-head and swan-neck tube,- the cooling tank and coil.At times it may also be completed by a wine-preheater.The Charentais still is traditionally used for the elaboration of Cognac, following the double distillationmethod.

Still-head Part of the still shaped as a turban, an olive or an onion.Stock By stock we mean, in the Delimited Region, the total amount of eaux-de-vie that have been put to age

in Cognac cellars.Stock (for graft) Roots of the vine that are used for grafting.Superior Quality In statistics, rating used to classify Cognacs that belong to the category of Count 4 or higher.

See "VSOP".SVBC Syndicat des Viticulteurs Bouilleurs de Cru pour la défense de l'AOC Cognac (Trade union of distillers

for the defense of the Cognac AOC).SVC Syndicat des Viticulteurs Charentais (Charentais wine growers trade union).Swan Neck Part of the still.Syndicat CognacProgrès et Tradition(Cognac progress andtradition trade union).

Professional business trade union represented at the BNIC.

Syndicat des

Exportateurs deCognac (CognacExporters TradeUnion)

Professional business trade union represented at the BNIC.

Syndicat professionnelviticole (WineProductionProfessional TradeUnion)

The Cognac Interprofession is represented by members of the most representative professional tradeunions of the wine production, wine growing, and related professions business.

The business trade unions represented at BNIC:- Syndicat des Exportateurs de Cognac- Syndicat Cognac Progrès et tradition- Union Syndicale des négociants en Cognac et eaux-de-vie

- Syndicat des négociants exportateurs des vins des Charentes vinés- Syndicat des négociants expéditeurs en vin de consommation courante de la Région Délimitée desCharentes- Syndicat du commerce en gros des Cognacs dans la Région Délimitée- Syndicat des bouilleurs de profession distillateurs du Cognac pour la défense de l' AOC Cognac

The wine growing trade unions represented at BNIC:- SGV or SGVDC, Syndicat Général des Vignerons pour la défense de l'AOC Cognac. It regroups theFVC, the FSVC, the Confédération Paysanne, l' OVCR ;- FSVC, Fédération des Syndicats Viticoles de Crus du Cognac (regrouped within the SGV) ;- FVC, Fédération des viticulteurs Charentais (regrouped within the SGV) ;- Syndicat Viticole de la Confédération Paysanne de la Région Délimitée, Cognac (regrouped withinthe SGV) ;



- OVCR , Organisation Viticole des Charentes Réunies (regrouped within the SGV) .

Other trade unions represented at BNIC:- Syndicat des négociants en Pineau des Charentes ;- Syndicat des producteurs et de propagande du Pineau des Charentes ;- SCVS, syndicat professionnel des Courtiers en vins et spiritueux de la Région Délimitée Cognac ;- Chambre syndicale des Courtiers ;- Syndicat des Maîtres Tonneliers des Charentes ;- Syndicat des Pépiniéristes Viticulteurs de la Région de Cognac ;- Syndicat des Producteurs de Vins de Pays Charentais ;- Association des Vignerons indépendants des Charentes ;- Fédération des coopératives de vinification, de distillation et de stockage du Pays de Cognac ;- Association des coopératives et Sica de stockage de la Région de Cognac.

Tail Product obtained at the end of the distillation process.Tannin 1- Contained in the stems and the seeds of the grapes, the tannins are essential for the wine, since

they assure their conservation and clarification. They are part of the deposit in red wine bottles.2- Oak wood also contains tannins that are progressively freed in Cognac eaux-de-vie during theirageing process, conferring them their characteristic color.

The Angel's Share Poetic term symbolizing the evaporation of Cognac during its ageing.Third Countries All countries outside of the European Union.Three Star See "VS".

Torula compniacensis Microscopic fungus that nourishes on alcohol vapors.The "Torula compniacensis" covers the walls and roofs of the Region, giving them a characteristiccolor.

Total Exports They are made up by the Cognacexports + uses + evaporation.Trade Union Trade union of Cognac eaux-de-vie companies.

Professional business trade union represented at the BNIC.Troncais One of the two main regions where the wood for the making of Cognac casks is obtained.Tulip Glass Glass with an eruditely studied shape, normally used by experts. It has the advantage of retaining

scents and freeing them with more delicacy during tasting. It has a tendency of replacing balloon-shaped glasses.

Ugni Blanc It is currently the main grape variety for the production of white wines fit for Cognacproduction.

Updating Specific moment during distillation when the first parts of the distillate are placed in the alcoholmeter.

Uses The uses that can be given to Cognac for the elaboration of other products: the Pineau des Charentes,liqueurs and other beverages, processes products and other wines...When the uses are added toCognacexports, we obtain total exports.Uses are also known as "mutations".

VBC Vins Blancs Cognac (Cognac White Wines).White wines fit for Cognacproduction.

Vinasse The residue left in a still after the process of distillation.Vineyard Illnesses The main illnesses suffered by the Charentais vineyards are:

Diseases on leaves and grapes: Mildew,Oidium,Botrytis , Black-rot , Excoriose.Wilting diseases: Eutypiose , Esca and Black-dead-arm , bacterian necrosis or Oleron disease, rougeau,

fan-leaf.Destructive diseases: Phylloxera, caterpillars, dust mite or leafhoppers.Vinification Transformation of the grape or grape must into wine.Vintage Cellar Cellar where the vintage eaux-de-vie are stored for their ageing process. This cellar is closed with two

keys; and one of them is given to the BNIC.See "Identified Cellar".

Vintage Year For Cognac, date that indicates the vintage year of the grape that was used for Cognacproduction. Inthe CognacDelimited Region, the eaux-de-vie that have aged in vintage year cellars or in sealed casksare counted in vintage years.

Voluntary Distillation The French production of winealcohol, except for Cognac, Armagnac, and AOC wines, comeexclusively from community intervention provided by regulation (EC) No. 1493/1999, as modified.Community Regulations provides for two types of distillation procedures:* Mandatory distillations, and



* Voluntary distillations:- The distillation known as "Potable Spirit Distillation", in which alcohols are not considered and

can be freely sold in the potable spirits market (beer, wine, grain alcohol, spirits and other alcoholicbeverages).

VRAC Term that describes all the product quantities that have not been dispatched in a condition to bedirectly presented to the consumer.

VS Very Special or *** (3 star). In the Cognac Appellation, ageing mention indicating that the youngesteau-de-vie in the blend has aged at least for two years (Count 2).

VSOP Very Superior Old Pale. In the Cognac Appellation, ageing mention indicating that the youngest eau-de-vie in the blend has aged at least for four years (Count 4).

Weak Eaux-de-vie to which distilled or demineralized water has been added and that are used for the"reduction" of eaux-de-vie. In French, known as "Petites eaux".

Wholesaler Indirect contribution term to describe a company performing large-scale operations. In theCognacDelimited Region, merchant that performs large-scale operations, also referred to as"middleman".

Wine Product that is exclusively obtained from the full or partial fermentation of fresh grapes or from grapemust.

Wine Campaign Period between August 1st and July 31st of the following year (regulation EC no. 1493/99 Article 1 §4).

Wine Eau-de-Vie This beverage:- is exclusively obtained by distillation with less than 86% wine volume;- with a content in volatile substances higher than or equal to 125 grams per alcohol hectoliter at100% volume and a maximum content of methyl alcohol of 200 grams per alcohol hectoliter at 100%volume;- Minimum alcohol level ( TAV ) : 37,5% volume.Cognac belongs to the wine eaux-de-vie category, but carries extremely restrictive production andelaboration conditions.

Wine Grower Individual that grows wine. There are over 6,400 wine growers in the Delimited Region that aredevoted to Cognacproduction. There are wine dispatchers, distillers, and direct vendors.

Wine Preheater Part of the still. Although not a required element of Charentais stills, it is traditionally used to pre-heatthe wine ready to be distilled, which allows saving energy and time.

Wine Station One of the 5 departments of the BNIC. It was created in 1892 following the phylloxera plague and

attached to the BNIC in 1947. The Wine Station is in charge, among others, of wine producing andoenological missions, service missions, and scientific and technical information dissemination. TheWine Station is a "COFRAC"-attached laboratory.

Wine of theCharentais Region

Wine that meets the production conditions fixed by the Decree of March 5th, 1981, as modified(tasting, analysis bulleting of fit varieties, ...). It needs to be exclusively produced in the Charente andthe Charente-Maritime departments.

XO Extra Old. In the Cognac Appellation, ageing mention indicating that the youngest eau-de-vie in theblend has aged at least for six years (Count 6).

2013 spirits cognac

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