A NEW ERA FOR HENNESSY COGNACS

A NEW ERA FOR HENNESSY COGNACS
Holding over 40 % of the global market share, Hennessy remains the number one
brand for cognac and is seeking to conquer other markets by mastering the growth of
its volumes. An interview with Éric Bastard, Administrative and Financial Manager.
A graduate of the EM Lyon (1985)
and the London Business School, Eric
Bastard, 48 years old, has followed
most of his career within the LVMH
group, to which he has belonged for 20
years. He was chiefly been in charge of
management control before taking
charge of financial management for
Séphora. He has, for 18 months, been
Administrative and Financial Manager
at Hennessy.
Commerce International: Could
you introduce the history of the
Hennessy brand?
Éric Bastard: “At the start, it was
Richard Hennessy, an Irish officer serving the King of France, who founded
this company in 1765. This skillful dealer understood straight away that cognac has a strong potential for export
markets. He dispatched his first casks
to the United States at the end of the
18th century; next came India, Russia
(1818), Australia, China and other
Asian countries (1859). In 1860, Hennessy was already selling one-quarter
joint venture with Diageo. Certain more
modestly sized markets are served by
agents. The overseas market represents 99 % of our sales (140 countries).
In this way, we are the leading exporter
company for France’s second export
sector following aeronautics.”
What makes up your range of
cognacs?
É. B.: “A number of brand-products
make up our portfolio. Hennessy VS,
whose origins date back to 1865, is the
widest sold cognac in the world; it is
composed of about forty eaux-de-vie.
Hennessy VSOP was developed later, in
October 1817, following an order from
the future King of England, George IV.
Hennessy XO was created in 1870 for
the personal consumption of Maurice
Hennessy, his family and friends; it is
composed of more than a hundred or
so aged eaux-de-vie, some of which are
over 30 years. Hennessy Paradis was
created in 1979 from several hundreds
of prestigious eaux-de-vie. Finally,
Richard Hennessy, created in 1996 by
Yann Fillioux and which represents the
of the world’s cognac! The company
developed thanks to its capacity to innovate, namely by introducing a new
classification for the maturing of eauxde-vie, and by creating the X.O category, which would subsequently be the
reference category for prestigious cognacs. In addition, the logo featuring
the well-known weaponed arm was
trademarked in 1864 to fight effectively
against counterfeiting. Once century
later, in 1971, Hennessy merged with
Moët & Chandon to give birth to Moët
Hennessy, which then joined forces in
1987 with Louis Vuitton to found
LVMH, the world’s number one in the
luxury sector.”
How is Hennessy positioned on
the global cognac market?
É. B.: “With over 40 % of cognac dispatches, Hennessy is the leader ahead
of Rémy Martin Martell and Courvoisier.
Our two biggest markets are China and
the United States. Worldwide distribution primarily takes place through the
Moët Hennessy distribution network,
and in certain countries, in the form of a
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seventh generation of Hennessy master
blenders, is in some way an incarnation
of the house’s excellence; it is composed of a blend of over a hundred or so
eaux-de-vie, some of which come from
the Chai du Fondateur (Founder’s Cellar), that gathers the house’s greatest
eaux-de-vie since 1774. Our latest creation launched this year, Paradis Impérial, is a prestigious cognac, a symbol of
elegance and refinement pushed towards their finest expressions.”
What are your relations like with
wine growers from Charente?
É. B.: “Winegrowers are our historic
partners, with whom we work hand in
hand to create the greatest cognacs. For
example, we recently set up a technical
forum for them allowing them to benefit
from expert advice for the development
of their installations. We also try to help
the youngest to get training in vineyard
management, in the permanent interests of seeking excellence in the eauxde-vie they deliver us. In addition, certain plots are not used for production,
but constitute experimental laboratories. I am convinced that in the luxury
sector, social and environmental responsibility will continue to make their
marks as levers for differentiation from
other brands. We are working actively
on this type of issue to involve all our
collaborators and partners.” •
More information on: www.hennessy.com.