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Cognac Category Growth & Future Trends

Glenmorangie Destillary

The month of August saw solid growth for cognac in the US market.  LVMH, the leader of the segment, reported that “management sees a ‘strong’ opportunity for the more premium segment.”  With that being said, cognac did very well in the US this past month.  According to Morgan Stanley data, “US shipments volume grew +33.5% y/y in August… On a 6-month rolling basis, US shipments grew +21.6% in volume and +21.0% in value…”  The other big market for cognac has been Asia.  Asia also saw growth with shipments up by +25.8% y/y.  Premium alcohol has recently been trending in a variety of liquor categories and cognac is surely one to add to the list.

Source: Morgan Stanley