MARKETING/DESIGN/CONSUMER TRENDS/INSPIRATIONS Cognac & Brandy News for Consumers & Industry Experts
According to the Consultant Agency Bain, China is set to be the fastest-growing market for luxury goods in 2011 and the world’s third-largest by 2015. DIAGEO is aware of this and they have just opened this month a tasting center in Shanghai’s fashionable French Concession district to ramp up new business in China for its Johnnie Walker brand of whisky. This new restored house for 3.2 million dollars is offering many unique products including a $2,000 limited-release 1910 Edition whisky.
The world’s largest distiller wants to increase the appreciation of whisky in a market where cognac and the French brandy Armagnac account for 66 percent of the value of all imported spirits, according to the International Wine and Spirits Research Magazine. Diageo hope to shift demand from cognac which has been an established luxury product in China for the past 80 years to whisky which represents currently 29 percent of the spirits’ market share.
This week BusinessWeek Magazine reported that DIAGEO is hoping that a younger generation of Chinese will start to behave like Western consumers and decide they want a drink for their generation. But this is likely to take a long time as the top 3 cognac Houses are investing heavily in China to maintain the status of cognac as the premier luxury spirit.