The Cognac Economy: Stocks
The Cognac Economy The Cognac Economy: Stocks
Cognac that is destined for consumption is in the most part (99.8% for the campaign 2016/2017 ) sold by Cognac companies. The remains are normally sold in the market by co-ops and cognac producers-direct vendors.
Cognac Operators
Cognac companies-senders are mainly in charge of Cognac exports and shipments. However, they only own a small part of the vineyard, and therefore are forced to stock up in order to meet the demands of their traders, most of it being destined to cognac growers of the Cognac Delimited Region, as well as to middlemen, namely distillers and authorized warehousekeepers.
These purchases from cognac growers, also known as "property purchases", as well as the operations that take place between businesses and middlemen, represent a significant business turnover. This figure is also a closely watched and essential indicator of the Cognac economy.
Diagram of Operators
Different Cognac Operators
"Business Property Purchases"
Business Property Purchases
In thousands of hectoliters of pure alcohol

CognacWine growers own the great majority of the vineyard and, consequently, almost all of the harvested wine. Knowing they only obtain a small volume fitted for consumption, their activity regarding Cognac is articulated as follows:

  • shipping of cognac to distillers, which in turn resell the resulting eaux-de-vie to wholesalers;
  • sending of young eaux-de-vies or stale eaux-de-vies they have distilled themselves or have had distilled. In the business, this operation is considered a property purchase.

Thus, in a way we could say that cognac growers provide raw materials or semi-finished products to the business.