Have you had a taste for the “brown water”? If you’ve visited your local liquor store, you might realize that Hennessy is scarce. Before you direct your frustration at the store clerk, you should know there is a worldwide shortage of Hennessy.
On the contrary, company executives were well aware of imminent shortage. In fact, last April it was announced a shortage could occur by the end of 2017:
“Hennessy Cognac saw volumes increase significantly which could impact the availability of stocks for the rest of the year.
By October, their premonition had become a reality: the impact of the short supply was noticeable. Philadelphia Magazine reported that there were only 10 bottles in the city at the time. It appears that the shortage will continue into 2018. Updates will be provided on the shortage and when to expect full restocks.
According to Reuters, Hennessy accounts for 80 percent of the world’s cognac market. Sales have surged over the last three years up to 15 to 20 percent. This is due primarily to the success of the V.S. bottling. The V.S. bottle accounts for 80 percent of Hennessy’s sales in the U.S.
Sales in the U.S. market have surged by 30 percent in the last three years. Despite growing profits, the brand is now down to their reserve stocks. Although Donald Trump thinks global warming is a myth, climate change has had adverse effects on cognac production.
Cognac is distilled from Uni Blanc grapes grown in the Cognac region of France. Extreme weather conditions such as frost and hail, have devastated the vineyards in which Hennessy source their grapes from. While the region does prepare for weather, production can still be effected.
The Bureau National Interprofessionnel du Cognac says more than 98 percent of Cognac is exported in which a majority is imported by North America. Subsequently, Americans will feel the shortage more than anyone else.
For this reason, don’t expect a quick fix. Cognac takes time to make. Hennessy’s youngest cognac takes between two and eight years to make.
CEO Bernard Arnault commented on the matter.
“We will try to boost the product for which we have the greatest demand to satisfy. I’m certain that in a year or two we can do it.”
Hennessy maintains they will be planting new vineyards which will take up to six years to completely satisfy production needs.
If you like Hennessy, now is a good time to stock up. Unless, you know Nas.