The velvet underground

Can Armagnac really grow by 12% over the next three years, as predicted by Vinexpo? And is the cocktail shaker really the best place for this growth to occur, asks Patrick Schmitt

SALVATORE Calabrese, when head barman at the Lanesborough’s Library Bar, once described Cognac as being like silk and Armagnac like velvet – the former was smooth and fine, the latter rich and deep.

Neither was necessarily better, it was simply a question of style and, of course, preference. It was a memorable analogy, and thinking about it further one that’s apt on a number of levels, for instance, when it comes to popularity.

This is because silk is in demand and velvet isn’t. Similarly, Cognac sells huge volumes, and Armagnac doesn’t.  In fact, UK Cognac sales outnumber Armagnac by 15 to 1.  Then there’s image: silk is sexy, and Cognac’s in, it’s bling.

Velvet, on the other hand, is a little Victorian, old-fashioned, and so is Armagnac, or rather people perceive it as such.  But the question is, should Armagnac attempt to modernise its image – or even style – and become a little more like silk?

Or by taking such a route, a little like the vicar who’s trying to be "cool", could Armagnac risk losing it’s traditional audience while failing to recruit a new one? Before beginning the debate it’s important to note that Armagnac is somewhat handicapped.

Firstly the region, comprising Bas- Armagnac, Armagnac-Tenarèze and Haut -Armagnac, is some 14 times smaller than Cognac in terms of surface area. Secondly, production is hugely fragmented.

While Cognac is controlled by four big brands who account for some 85% of its market, Armagnac contains some 4,000 growers and 400 houses who sell and market their  Armagnacs, and only 200 of these sell more than one hectolitre of pure alcohol, or around 360 bottles.

There’s little in the way of funds for generic marketing, and only around 50 of the houses actually export to the UK, the most successful of which is Janneau, although Comte de Lauvia (ex Marquis de Montesquiou) is reputedly catching up.

Domestic dominance It’s also useful to assess the market. France is where some two-thirds of Armagnac is sold, making the domestic market the most important.  Then there’s Britain, which is Armagnac’s largest importer in terms of value, although when it comes to volume, Spain takes top spot, as it imports young Armagnacs in larger quantities.

And before considering the UK market in greater detail it’s worth quickly noting the styles of this AOC brandy.  The youngest of the Armagnacs is called La Blanche (although yet to be officially recognised as an AOC Armagnac), an eau de vie that undergoes no barrel ageing.

Then there’s VS or Three Star which must spend a minimum of two years in oak; VSOP with a five year minimum; X0 with a six year cut off, and finally Hors d’Age, which needs 10 years, but often spends much longer in barrel.

Added to this are vintage Armagnacs, as well as a range of varietal versions.  Overall, it is a brandy renowned for great character – partly because the majority of Armagnacs are single distilled for flavour retention.

But to return to the UK market, Armagnac accounts for some 35,000 cases, compared to Calvados which comprises 20,000 cases, Spanish brandy 140,000 cases and Cognac, 600,000 cases.   If you take mean average growth over the last three years then Armagnac is keeping pace with Cognac – the former is growing at around 7%, the latter 8%.

But while 88% of Cognac is Three Star, over 50% of Armagnac sales in Britain are VSOP, and James Rackham, director of Winefare Agencies, believes growth is occurring further up the age levels.

This he says "is a UK phenomenon – in other European markets Armagnac sales are price-driven – but the UK market has a very exciting profile, quality is important".  Added to this is an overall sense of optimism for Armagnac.

As Sebastien LaCroix, director of BNIA, the French Armagnac Bureau, points out, research carried out by Vinexpo in April has highlighted that Tequila, Cognac and Armagnac are the only spirits expected to really progress globally between now and 2007.  An increase of more than 12% is predicted. 

Crowded market

However, for all the positive predictions, the simple fact is that the UK market "is not big enough," according to Neil Mathieson, managing director of Eau de Vie, and this means "there’s not much space for new entrants". Janneau, for instance, is strong, although that’s really in the UK onpremise only, and if one considers on- and off-trade, Tesco own-label is the biggest "brand" after Janneau.

This means that when it comes to the shop shelf or the back bar, it’s unlikely there’ll be room for a range of Armagnacs.  Rackham, however, is optimistic for Comte de Lauvia, a rebranded Pernod Ricard product, which he says is "creeping up on Janneau like a tiger".

The basis for the rebrand, (Lauvia as noted above was previously Marquis de Montesquiou), "was to follow the malt whisky route to market," says Rackham.  "VSOP and XO don’t have a lot of meaning, so we went for the aged statement for the brandy and we went for a 12 year-old quality because we used Glenlivet as our benchmark."

And Rackham believes the brand "is bringing new people into the market.  It is not just about snapping at the heels of Janneau, it’s about snapping at the heels of Courvoisier and Martel."

Tackling the on-trade

But for Armagnac to have a crack at Cognac it needs to find favour in the on-trade, be it with sommeliers or bartenders.  To deal with the former first, it seems Armagnac is certainly suitable for restaurants with sommeliers.

With the range of products – different varietals and vintages – as well as its distinctive taste and terroir, Armagnac suits the hand-sell, because it gives sommeliers plenty to talk about. Also, as a largely non-branded proposition, it gives restaurants a point of difference from others, on- and off-, selling known brandy brands.

For this reason restaurants tend to have "a pretty good representation of Armagnac," according to Rackham.  He also notes, "It is a very masculine product – the demographics of the Armagnac drinker are male, mid 40s, professional, and interested in good brandy and discovering what is good Armagnac."

And marketing has pandered to just such a customer profile.  "Classic Armagnac imagery, like Cognac, is all very sophisticated, with brandy balloons, enormous châteaux and large cigars," notes Mark Symonds, brand group manager at John E Fells.

However, this does have its drawbacks, and has "meant the drink’s image has become very special, and maybe too special, because it has become inaccessible to the modern drinker; it is not contemporary."

For this reason Janneau has been trying to acquire a slightly more modern feel in this country.  In particular with a print advertising campaign containing the strapline "More than a Malt", which is meant to draw a parallel between whisky and Armagnac production methods but also "to create intrigue", (though, obviously, not suggesting that Armagnac is the better drink).

Behind bars

Such advertising has, in fact, featured in magazines such as Class and the Source Guides as Janneau is attempting to alert the barman to Armagnac’s qualities.  Janneau has also split its portfolio in two.

The brand now offers a "traditional" range – a VS, VSOP and XO, which all come in flat-fronted, flask-shaped bottles, for the prestige hotel and restaurant sector for afterdinner drinking – and a double-distilled range in a slender bottle (comprising a 5, 8 and 15-year-old) for styles bars.

Fells, in fact, only handles the 5-year-old in Britain, which, with its doubledistillation gives the Armagnac a "smoother and mellower flavour that’s good for mixing in cocktails", explains Symonds.  Janneau has also employed a bartender (Milo Rodriguez from The Player) to act as a brand ambassador.

"He does cocktail demonstrations and helps promote a range of cocktails for us," Symonds comments.  "Armagnac is a very small sector of the market," he continues, "and it makes it a bit more front of mind, and we are saying why not try and at least use it in your repertoire; let’s not forget Armagnac."

Similarly, Rackham with Comte de Lauvia has "this year decided to focus heavily on the on-trade. We have launched two 50cl Comte de Lauvia – the "Sept-ans" and "Vingt et Un" (seven and 21-year-old).

We have put them into a bottle which is very stylised and launched them into the stylebar market in London."  Interestingly, the classic Armagnac bottle shape is unsuitable for bars. "The traditional flask shaped bottle takes up two bottle spaces," notes Mathieson, "and bars won’t want that because while it takes up two spaces, they can’t charge for two drinks."

Cock-tales

But while it’s all very well getting Armagnac on the shelf, producers and importers must ensure it’s being used – and correctly. For this, the likes of Janneau’s Rodriguez and Comte de Lauvia’s Marco Rosado (Quaglino’s head barman who has created a signature cocktail for the Pernod-owned brand) are vital in making sure Armagnac is considered when it comes to cocktail creations.

And Rackham observes that barmen like using Armagnac "because it has lots of interesting flavours, it has depth and aged flavours and it’s not as sweet as Cognac can be, and they like the perception of Armagnac as a smart product, maybe a bit like a decent vodka".

Furthermore, back in France, producers have for some time been mixing young Armagnacs or Blanche d’Armagnac with fruit to try to earn an income while they wait for ageing Armagnacs to mature.

For instance, Mirage, which is a blend of Armagnac and exotic fruits, is hoping to mirror the success of a Cognac-based drink like Alizé.  There are also Blanche Armagnacs mixed with orange – similar to Grand Marnier – or lemon.

While, to move away from the ready-mixed market, Tariquet is testing the French on-trade with an Armagnac specifically designed for the barman.  It comes in a squat bottle with a colourful label and a booklet of cocktail recipes.

But some are uncertain of this approach to the UK, or indeed any market.  Mathieson, for instance, is anti the idea of trying to sell Blanche Armagnacs to barmen, citing Cîroc as a brand that’s already attempting to corner that market, and with Diageo’s marketing might behind it.  (Cîroc may be classed as a vodka but it’s made like an eau de vie – by distilling grapes).

Then, when it comes to aged Armagnacs, many believe this carefully crafted brandy should not be destined for the shaker, but for savouring on its own.  For this reason such people believe Armagnac should try and protect its quality image, not try and promote its versatility when it comes to mixology.

Jonathan Downey, founder of the Match Bar Group, makes the point: "I certainly prefer Armagnac over Cognac as it has terroir, a character and individuality, while Cognac is almost blended for the international market.

Armagnac can’t compete with Cognac on XO and the bling of it. It should emphasise the small producers, small volumes – the anti-brand of it." And as for mixing it? "Cognac cocktails were created 100 years ago and have a history and heritage.

Chucking in fruits and liqueurs with some Armagnac doesn’t feel right to me, and it almost seems now it is the default option to launch a product. I’d be emphasising something different."

Nevertheless, Rackham defends his attempts to attract the barman.  "The French know they have to be more proactive in their marketing and they know the export markets are the lifeblood – the French market is in decline for alcohol."

And be it the bartender with his shaker or sommelier with his digestif trolley, Mathieson certainly  enlist the support of both – "you need to work through them because reaching the public is so much harder".

Although most would agree that Armagnac could do more to raise awareness of its varied and exceptional products, it is after all the oldest brandy in France, it should be careful not to double-distil its essential character for that short-term share of the shaker.

Remember Calabrese’s analogy? It’s important Armagnac keeps its point-ofdifference.