Is it wise to collect high-quality cognac?

According to Chris Carter, the French spirit cognac is becoming stronger

Scotch whisky is still more expensive than the rarest cognacs. In any case, the whisky market is much larger, and the collectible market for the latter flourished during the period of extremely low interest rates. Scotland exported 5p6 billion worth of whisky in 2023, compared to nearly 3b (2p5 billion) in cognac sales annually, according to data from last month. Of that, 31% goes to China, and 97% of the cognac is exported. Days earlier, Beijing threatened to impose similar taxes on European brandy (of which 99 percent comes from France, i.e., Cognac) in retaliation for European Union tariffs of up to 35 percent on its electric cars. Things could still get worse. As a simmering trade war between the United States and China intensifies, it poses a threat to the European Union. "The renowned French alcoholic beverage, cognac, is at risk of being caught in the crossfire," Henry Samuel of The Telegraph writes.

Despite the gloom, or perhaps because of it, rare cognac has been getting more expensive in recent years. The current auction record was set in 2020 by Sotheby's sale of a 1792-distilled bottle for 118,580. In addition, Martell, the oldest of the "big four" auction houses (along with Hennessy, Courvoisier, and Rmy Martin), offered a rare cognac dame-jeanne, or large glass flask, for one million dollars last February. It committed to doing the same every year. Ahead of the sale of a single bottle of 72-year-old Martell, which brought in 32,500, auction house Christie's recently posted a collector's guide to purchasing cognac on its website, another indication that the market is maturing nicely. That's quite old for a cognac.

99 percent of the high-acidity, low-alcohol white wine used to make cognac is made from the ugni blanc grape, also known as trebbiano in Italy. The regulations also permit the use of a few other grape varieties. After the grapes are harvested, the wine goes through a double-distillation process known as the repasse in French, which involves distilling the distillate, or brouillis, a second time. Each step of the process, known as chauffe (heating), must be finished by March 31 at the latest. The eau de vie is placed in casks of French Limousin or Tronais oak for at least two years after impurities are eliminated and the alcoholic strength is increased to up to 73 percent to account for evaporation. The clear spirit ages and absorbs the flavors of the wood during that time, turning darker. The labels VS (very special), VSOP (very superior old pale), Napolon, XO (extra old), and XXO (extra, extra old, also sometimes referred to as hors dge) can be applied to the cognac after two, four, and at least fourteen years in the cask, respectively.

Cognac crus.

In order to study the terroir in the area known for producing cognac, a French geologist named Henri Coquand partnered with a local wine enthusiast sometime around 1860. In 1938, Coquand formally recognized the six different regions (crus) he had identified. They may be identified on the bottle label as coming from:, depending on the way the cognac is blended.

Large Champagne.

The Grande Champagne region's hills and crumbly chalk soil are ideal for producing the acidic white wine used to make cognac, and it is regarded as the crme de la crme of the crus. According to the industry trade group Bureau National Interprofessionnel du Cognac (BNIC), the eau de vie has a "predominately floral bouquet." To fully mature, though, it must also be left in the oak casks for a longer period of time.

Champagne petite.

In actuality, the acreage of Petite Champagne is greater than that of its neighbor Grande. However, this area has flatter terrain and denser limestone-chalk soil. Although the eau de vie doesn't exhibit quite the same degree of finesse, Petite Champagne wines are also highly regarded. "Fine Champagne" is made up of at least 50% Grande Champagne and at least 50% Petite Champagne.

Borderies.

The groies, or soils of limestone and clay, are the closest to the town of Cognac and the smallest of the crus in terms of area. According to the BNIC, the cognac produced from grapes cultivated in the Borderies is "round" and "aromatic" with a "bouquet of violets," and it requires less ageing than those grown in the Champagne regions.

Fins Bois.

The soil is a little more chalky in the south of the Fins Bois, but it is comparable to that of the Borderies and its groies in the north. Grapes grown here produce "round" and "supple" eau de vie with a "fruity bouquet reminiscent of pressed grapes" that ages rather quickly.

The Bons Bois.

The soil in the Bons Bois ranges from rocky to sandy, and the eau de vie made from the grapes grown there is highly varied. Additionally, the region is split between a continental climate in the east and a maritime climate in the west. The grapes grown in Bois Ordinaires, also referred to as Bois Terroirs, are more influenced by the winds that blow off the Atlantic. "Fruity aromas" are present in the resulting eau de vie.