Latest news with #brandy
ABC News
6 days ago
- Health
- ABC News
Brandy production returns to Coonawarra as winery revives distilling heritage
For the first time in decades, brandy is returning to the Coonawarra. The region was once a major producer of the wine-based liquor, before it dropped out of fashion. The idea to bring back brandy to the Coonawarra came from the director of Majella Wines, Brian "Prof" Lynn. After contemplating launching a spirit, he thought brandy would be the most natural progression from wine. It has so far been a straightforward addition for the business, requiring only a distillation still in addition to their existing wine, rainwater and wooden ageing barrels. Mr Lynn has found the distilling process to be quick, only taking about six hours. But the ageing process is slow, with all brandy legally required to be aged for two years in a wooden cask. Despite the strong historic origins of brandy in the region, Majella's release is the first to include the region on the labelling. In the early 1900s, tastes were changing and demand for dry reds dwindled. The brandy produced with the surplus grapes would eventually become generically branded brandy. But as other wine varieties grew in popularity, Coonawarra's brandy production declined and eventually stopped in the late 20th century. Much of the knowledge about Coonawarra brandy has been lost through the decades, but there are some in the region still with connections to the liquor. Coonawarra resident Diana Clayfield's father, Arthur Hoffmann, was a viticulturalist, wine and brandy maker in the region. "He enjoyed doing it [making brandy]," she said. Ms Clayfield remembers the generation before her enjoying a brandy, and sometimes even using it for medicinal purposes. "If you had a flu, they warmed brandy and wine up together and had it as a medicine," she said. It was this connection with medicine that helped brandy to become so popular, with production peaking in the 1960s. Luke McCarthy has extensively researched and written about Australian spirits and brandy. He said hospital brandy emerged around the turn of the 20th century, with major brands producing it into the 1940s. The term fell out of vogue around the same time brandy production declined. Another blow was the federal excise on brandy, facing a large increase in the 1970s to be closer to other spirits. "It's a combination of economic forces, government intervention and then shifting consumer trends, which have seen brandy really ride this sort of roller coaster ride over the last 100 years," Mr McCarthy said. Australian Distillers Association president Holly Klintworth said, although the market for other spirits like gin had become crowded, there was an opportunity ahead for brandy. "There's definitely a place in Australia for brandy and I hope that it's only a matter of time before more and more people start to rediscover just how amazing brandy can be," she said. And it could be a money spinner for wineries — Ms Klintworth's distillery turns "about $16,000 worth of wine into the equivalent of $1.5 million worth of brandy". "It makes a lot of sense. We've got so many wine regions," she said. Mr Lynn agrees that conditions are right for a comeback. He was already ageing a fresh batch of brandy to release in future years. "In the old days, brandy was huge; everyone drank brandy," he said.
Yahoo
6 days ago
- Business
- Yahoo
Constellation Brands sells Copper & Kings to Bourdon Spirits Company
US alcohol giant Constellation Brands has offloaded American brandy and Bourbon maker Copper & Kings to local spirits group Bourdon Spirits Company. The financial terms of the deal, which was finalised yesterday (5 August), were not disclosed. In a statement, Bourdon Spirits Company said the acquisition "marks a key milestone and deepens Bourdon Spirits' investment in the future of American brandy". Production will continue at Copper & Kings' distillery in Kentucky following the acquisition, the family-run business said. Like Copper & Kings, Bourdon Spirits Company is also based in Louisville. "We plan to build on Copper & Kings' legacy by honoring its roots and continuing to do things our own way, just as the brand always has," Rob Bourdon, the founder of Bourdon Spirits Company, said. "This is a brand that respects tradition while creating with a distinct, American-made spirit. We're excited to bring American brandy to more people, in more places." Just Drinks has asked Constellation Brands to comment on the deal. The Pacifico brewer first took a minority stake in Copper & Kings in 2018. It then acquired the business through its incubator arm, Constellation Ventures, in 2020. In December, Constellation sold Svedka vodka to Buffalo Trace and Southern Comfort owner Sazerac. At the time, Constellation said the deal was another move to focus on 'higher-end wine and spirits brands'. In April, Constellation sold six wine brands, including Woodbridge, Meiomi and Cook's, to The Wine Group. In 2022, the group sold another clutch of brands to The Wine Group, such as Cooper & Thief, 7 Moons and The Dreaming Tree brands. Constellation still retains presence in wine, with brands like Robert Mondavi Winery, New Zealand's Kim Crawford and Italy's Ruffino Estates, which, at the time, it said were 'predominantly priced $15 and above'. The Rochester-headquartered business has been facing hurdles in its Wine and Spirits division for some time now. The segment saw organic net sales decline 6% in the company's fiscal 2025 to $1.7bn. In its first quarter of its 2026 fiscal year, Constellation saw a 21% decline in organic net sales for its wine and spirits business at $280.5m. The company has forecasted organic net sales for the unit to drop 17% to 20% in the full-year, and expects organic operating income from the wine and spirits unit to slump 97% to 100%. "Constellation Brands sells Copper & Kings to Bourdon Spirits Company" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Mail
18-07-2025
- Business
- Daily Mail
Is now the time to view luxury brands as cheap thrills?
Fear stalks the luxury goods industry which brings us brandy, champagne, baubles, £10,000 handbags and £150,000 watches – not to mention £520 bucket hats for this summer's 1990s style revival, sparked by the Oasis concerts. Shares in industry behemoth LVMH are down by more than 30 per cent over the past 12 months to €472 (£409) as a result of a slump in demand and factors such as the availability of 'super-fake' bags – that can only be distinguished from the real thing by X-ray technology. In April 2023 shares in LVMH, which owns Dior, Louis Vuitton, Moet Hennessy, Sephora, Tiffany, Tag Heuer and 69 other brands, reached €903 (£783). LVMH boss Bernard Arnault became the world's richest man; he's now number eight in the league. A fightback is currently being led by LVMH and the other names in this €364billion (£316billion) industry of gloss and glamour – Burberry, EssilorLuxottica, Hermes, Kering and Richemont – hinting that it may be time to start bargain shopping for luxury goods shares. But the performance of an Asian newcomer suggests that these European players will have to muster all their creativity to regain their lustre. Over the past year, there has been a 928 per cent leap in the shares of Laopu Gold, a Chinese group founded in 2009. The company's jewellery and watches embody 'guochao' – that is, heritage, a quality currently most appealing to Chinese consumers. Since China is the world's largest luxury goods market, this homegrown bling movement is more bad news for LVMH and the rest. It also indicates what Gillian Diesen of Pictet Asset Management calls a shift to 'hard luxury' that is more about lasting quality. Laopu pieces are made of 24-carat gold, a plus when the gold price is forecast to rise further. LVMH and the other European players have already lost about 50m customers worldwide in the past two years as post-pandemic 'revenge spending' has receded against a tough macro-economic background. Tariffs may exacerbate the situation in the US. In the worst-case scenario, management consultants Bain estimates that the sector could shrink by a further 5 to 9 per cent this year. The companies' forthcoming second-quarter results will underline the headwinds they face. But Diesen argues that this will draw attention to luxury goods shares. Investors looking to diversify will conclude that the valuation of some companies is 'untenably low'. Diesen says: 'Despite low short-term expectations, there is little reason to suggest that premium brand spending will not return to its normal long-term average levels of growth, even in China. 'These companies have high gross profit margins, strong balance sheets, plenty of pricing power and long heritage which should see them through more volatile times.' The allure of a £10,000 bag may be lost on you, but you are gambling on the luxury goods sector's ability to adapt and innovate if you have savings in such popular funds as Finsbury Growth & Income and Fundsmith, which hold Burberry and LVMH respectively. The Pictet Premium Brands fund owns EssilorLuxottica, the Ray-Ban sunglasses business, and Hermes. If you want to bet on luxury, here's what you need to bear in mind: WHAT'S GONE WRONG? 'A lack of innovation and excessive price rises' are the key reasons for the travails of the luxury goods groups, says Mamta Valechha, analyst at Quilter Cheviot. Some items are now vastly more expensive. The Lady Dior bag, the style beloved of Princess Diana, costs about 75 per cent more than in 2019, and the largest version is £5,600. Valechha says: 'Many of the aspirational consumers who fuelled the post-pandemic sales explosion are now questioning the perceived value of these goods, with even names such as Chanel finding there is a limit to its pricing ambitions.' The disaffection among Gen Z consumers over pricing has boosted the popularity of 'super-fake' bags, which are said to look the real thing and cost £500 rather than £5,000. LVMH and other companies are trying to catch more of this generation by launching relatively more affordable, entry-level pieces. A £480 Dior travel pouch provides the look for less. There's also that £520 bucket hat for a 1990s Oasis vibe. BURBERRY At this week's annual general meeting chief executive Joshua Schulman pledged to concentrate on those areas where it has 'authority', which is the industry-speak for design flair and pricing power. At Burberry this means a focus on its trenchcoats and other outerwear, including Oasis-style hats and parkas, rather than expensive handbags. Schulman said: 'I'm optimistic that our best days lie ahead.' At 1317.5p, the shares are 21 per cent lower than three years ago but – 75 per cent higher over the past 12 months. Analysts consider it a 'hold'. ESSILORLUXOTTICA This French-Italian company is not only the world's number one manufacturer of spectacles, but also at the forefront of technology with its AI-powered glasses. Such is the potential of these wearable devices that Meta, owner of Instagram, Facebook and Whatsapp, has acquired a stake. Shares are €244 (£211.50) but analyst Louise Singlehurst, of Goldman Sachs, has set a target price of €285 (£247). HERMES The €251billion (£217.5billion) French house makes the Kelly and Birkin bags that are a badge of wealth and continue to be deemed to be worth their £10,000-plus price tag. Earlier this year Hermes became, briefly, a more valuable company than LVMH. There are now some questions as to whether it can continue to defy headwinds. Yet, the majority of analysts still reckon the shares – currently at €2,367 (£2,051)– to be a 'buy'. KERING Shares in Kering have tumbled by 16pc since the start of the year and are now about 60 per cent down since 2022. The cause of the French company's woes are the problems at its Gucci and Saint Laurent divisions. But Luca de Meo, the former chief executive of Renault, is taking the top job with a mission to turn around its fortunes. For the moment, analysts are unconvinced he can quickly arrest the decline, which means that these shares represent a gamble on his talents. LVMH Eleven of the analysts who follow LVMH rate it a 'hold', but nine have a 'buy' recommendation, based presumably on the assessment that Arnault will use his considerable ingenuity to revive the business. The 76-year old, known as the 'wolf in cashmere', has always prided himself on a rigorous approach, saying that 'a company, even if it's successful, should be managed as if it could go under within 12 months'. I plan to take a flutter on the basis that Arnault will wish to bow out on a high. His planned retirement age seems to be 85. RICHEMONT This Swiss group is best known for its jewellery 'houses' – Cartier and Van Cleef & Arpels. These brands were benefiting from the weakness of the yen which encouraged visitors from elsewhere to splash the cash in Japan. Figures this week, however, showed that these purchases had slowed thanks to the strengthening of the yen. But sales elsewhere have been strong, suggesting that shoppers perceive the jewellery to be more of a store of value at present than clothing. If you want to back this trend, the analysts who rate Richemont a 'buy' have set a target price of 224 Swiss francs (£208), against the current 141.8 (£132).
Yahoo
04-07-2025
- Business
- Yahoo
China imposes anti-dumping duties on European brandy as trade tensions rise
BEIJING (AP) — China on Friday imposed anti-dumping duties on European brandy, most notably cognac produced in France, as trade tensions between Beijing and United States allies continue to rise. Chinese authorities agreed to exempt some major cognac makers on condition they maintain their prices above minimum levels. The tariffs, effective on Saturday, will range from 27.7% to 34.9%, China's Commerce Ministry said. They are to be in place for five years and will not be applied retroactively. French President Emmanuel Macron said on X that the exemptions for most cognac and armagnac producers are 'a positive step towards putting an end to the dispute that was threatening our exports.' 'We will continue to support our industry to ensure that its interests are fully protected,' Macron said. The announcement came during a European visit by Chinese Foreign Minister Wang Yi aimed at ironing out trade differences. Wang was set to visit Paris after stops in Brussels and Berlin. French Foreign Minister Jean-Noël Barrot said he will discuss the issue with Wang when the pair meet later Friday. The anti-dumping duties are the result of a probe China launched last year into European brandy, after the European Union undertook a probe into Chinese electric vehicles subsidies. 'The investigative authority finally ruled that the dumping of related imported brandy from the EU has existed,' read a statement by China's Commerce Ministry. 'The domestic brandy industry faces a material threat of damage, and there is a causal relationship between the dumping and the substantial damage threat.' Besides cognac, China has also launched investigations into European pork and dairy products. The brandy probe was the first and targeted mainly French makers of cognac and similar spirits such as Armagnac. China initially announced provisional tariffs of 30.6% to 39% on French cognac producer Remy Martin and other European brandies after a majority of E.U. countries approved duties on electric vehicles made in China. Exemptions include French producers Pernod Ricard, Remy Cointreau and Hennessy. In a written statement, Barrot praised the 'broad scope of exemptions' as 'a positive step for many players in the cognac and armagnac industry." He noted that 'several important points remain unresolved, in particular the exclusion of certain players from the scope of exemptions." "We remain fully committed to finding a definitive solution, based on the conditions that existed prior to the investigation," Barrot added. Wang's European tour comes ahead of a China-EU summit to be focused on trade later this month in Beijing.
Yahoo
04-07-2025
- Business
- Yahoo
France says 'major issues' remain despite brandy price accord with China
France on Friday praised China's steps to settle a trade dispute over European brandy imports but warned that "major issues" remained unresolved. The signs of a thaw in the row over the alcohol came as China's Foreign Minister Wang Yi met French President Emmanuel Macron and Foreign Minister Jean-Noel Barrot in Paris. In recent months China and the European Union have butted heads over Beijing's generous subsidies for its domestic industries. Beijing launched an investigation last year into EU brandy, months after the bloc undertook a probe into Chinese electric vehicle (EV) subsidies. In the latest salvo, China will from Saturday require European brandy exporters to raise prices or risk anti-dumping taxes of up to 34.9 percent. Beijing said 34 European brandy makers, including several French cognac producers, had signed an accord to avoid tariffs as long as they stick to an agreed minimum price. France's cognac makers' association BNIC, which includes key producers Hennessy, Remy Cointreau and Martell, confirmed that some companies had agreed to price increases in China to avoid anti-dumping taxes. - 'Positive step' - Macron and Barrot praised China's steps to resolve the dispute but stressed they would discuss the outstanding differences with Wang. "This is a positive step towards resolving this dispute, which was threatening our exports," Macron said on X. "I will continue to raise these issues with the Chinese authorities this afternoon." In a statement to AFP, Barrot said: "Several major issues remain unresolved, in particular the exclusion of certain players from the scope of the exemptions." "We remain fully committed to reaching a definitive solution based on the conditions that existed prior to the investigation," he said. Wang has held fraught meetings in several European countries this week. After meeting Macron and Barrot, Wang told a press conference: "The two sides had in-depth, active and sincere exchanges on Sino-French and European relations." No mention was made of the brandy dispute. Almost all EU brandy is cognac produced in France, whose exports to China are worth 1.4 billion euros ($1.6 billion) per year. French liquor giant Jas Hennessy said it would face levies of 34.9 percent if it did not stick to the deal. Remy Martin will be hit with 34.3 percent and Martell 27.7 percent. "The decision to accept the price commitment once again demonstrates China's sincerity in resolving trade frictions through dialogue and consultation," a Chinese commerce ministry spokesperson said in a statement. However, the European Commission kept up criticism of China's new tariffs. "We believe that China's measures are unfair. We believe they are unjustified," said commission trade spokesman Olof Gill. "We believe they are inconsistent with the applicable international rules and are thus unfounded." - Upcoming summit - China has sought to improve relations with the European Union as a counterweight to the United States. But frictions remain, including a yawning trade deficit of $357.1 billion between China and the EU, as well as Beijing maintaining close ties with Moscow since Russia invaded Ukraine. The trade row blew up last year when the EU moved to impose hefty tariffs on Chinese electric vehicles, arguing that Beijing's subsidies unfairly undercut European competitors. Beijing rejected the accusation and announced what were seen as retaliatory probes into imported European pork, brandy and dairy products. The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicles in October. Beijing lodged a complaint with the World Trade Organisation, which in April said it would set up an expert panel to investigate. China and the EU are to hold a summit this month to mark the 50th anniversary of their diplomatic ties. But Bloomberg News reported, citing unnamed sources, that Beijing would cancel the second day of the summit, in a sign of the tensions. bur-pfc-as/tw/phz Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
