How armagnac brands are looking to the next generation of consumers - Category Intel

Armagnac’s homeland is south-west France, where the ancient province of Gascony was home to D’Artagnan the musketeer, the local cuisine comprises duck in myriad forms, and the tradition of creating this single-distilled brandy dates back 700 years. With hundreds of small producers spread over three districts, its culture is one of true artisan craft, with small, family-run businesses using column stills and techniques passed down through generations.

For the connoisseur, armagnac can become an obsession and the liquid’s popularity has risen in recent years among consumers interested in a spirit with a discernible character that varies from distillery to distillery. Where the 1950s and ’60s saw its nearest relative, cognac – produced in the Charente in mid-western France – lean into a large commercial drive, armagnac has stayed close to its heritage.

“Compared to cognac, armagnac is a niche, craft and rare drink,” says Louis Laborde, global brand manager of Clos Martin, whose range includes a three-year-old VS made with a blend of baco and ugni blanc grapes, and a 1964 single-varietal (Baco) Millésime which comes from a single cask from the Château de Gaube estate.

“Armagnac offers a greater diversity of styles and vintages,” Laborde argues. “At Clos Martin, we are able to access vintages dating back from the early 20th Century. At its heart, armagnac conveys an epicurean lifestyle, an art de vivre related to the Gascony and south-west France more generally.

“All these aspects explain why sommeliers, chefs and spirits experts have a deep interest in the armagnac terroir.”

Its heritage and artisan approach to distillation means armagnac’s production process is inherently eco-friendly, without having to make many changes for modern appeal. “From the bottle to the liquid, everything is produced in south-west France,” says Laborde. “We use glass bottles, labels, capsules and barrels that are all made locally. Respecting the armagnac appellation rules, our eaux-de-vie are made from local grape varieties, distilled and aged in the Bas-Armagnac. Our carbon footprint is therefore minimal.”

Mixology tie-ins and NPD help reach younger LDA consumers

Armagnac’s heritage, however, may hold less allure for younger LDA consumers. Consequently, brands are working hard to tap into the cocktail scene.

“Clos Martin VS works best in a long-serve cocktail because of its fruit- and floral-forward profile, while Clos Martin VSOP [is better] in short-serve cocktails because of its slight complexity and oak aromas,” says Laborde, who also promotes Blanche Armagnac, a non-aged armagnac targeted at bartenders. “This white spirit is only produced in the Armagnac region – it is forbidden in the Cognac appellation – and offers a different style and approach to brandy. The purity of fresh fruit and floral aromas, which come from the distillation, express themselves harmoniously in cocktails.”

The producer, Laborde notes, is working with renowned mixologists and promoting Clos Martin VS and VSOP as an ingredient to be mixed in well-established brandy-based serves.

“Maxime Potfer, pioneer innovation bartender from the Experimental Cocktail Club in Paris, created three signature cocktails for the house. In fact, Clos Martin has seen a lot of success in the UK with classic cocktails, thanks to the resurgence of these kinds of serves.”

Similarly, Spirit France, whose brands include prestige armagnac from La Maison Janneau and Armagnac Le Marque, recognises the cocktail opportunity. CEO Serge Der Sahaguian says: “Any brown spirit, old-style cocktails can be twisted with armagnac, such as the old fashioned, vieux carré or manhattan.

“I’ve seen other innovative uses, such as the old fashioned at Le Syndicat in Paris with whisky, Armagnac Janneau, coconut sugar and bitters.”

Darroze Armagnac’s vintage armagnac line, The Collection Unique, has been its priority for 50 years, although the company has also spent the last 15 years working on expressions that will appeal to younger consumers. “Our range of blends is easier for rum or scotch drinkers to tune into, as it starts at an approachable eight years old,” says CEO Marc Darroze. “The Blanche Armagnac range was created mostly for mixology and is definitely another way to reach the new generation of drinkers through cocktails.

“It has the pure and elegant expression of unaged armagnac with just one cuvée per grape variety: Baco, Ugni Blanc and Folle Blanche. Each bottle reveals its unique character and own flavour profile, and this allows creativity in cocktail-making.”

Food pairing spreads the word

Armagnac has enjoyed relative success in recent years in China, where it tends to be drunk neat and paired with foods. The food-pairing opportunity doesn’t end with Asian cuisines, though.

“Today, gastronomic and Michelin-starred chefs in the UK, the US and France promote armagnac pairings with meat and cheese, or with desserts,” says Clos Martin’s Laborde. “Our Clos Martin XO, for instance, pairs wonderfully with any dark chocolate sweet dishes like macarons. In the UK, Hélène Darroze (sister of Darroze Armagnac CEO Marc), chef at the three-starred Michelin restaurant The Connaught in London, is an armagnac ambassador.”

Marc Darroze agrees that armagnac makes an excellent pairing with chocolate, but says it also goes well throughout a meal, as he proved last year in San Francisco with an armagnac dinner created by chef Guillaume Bienaime, owner of BarZola Palo Alto, who also used the spirit in his dishes.

“He did a 1981 and 1982 Château de Lahitte (ugni blanc/colombard) with a Liberty Farms duck tart and roasted winter vegetables with armagnac-poached prunes and a truffle jus,” says Darroze. “For dessert, the 1962 Château de Gaube (baco) with chocolate mousse.

“It was a pure delight that blew the guests’ minds!”

New markets in Europe and Asia

The largest markets for armagnac, according to IWSR Drinks Market Analysis, are France, the UK, Russia, the US and global travel retail. Of these, IWSR forecasts that GTR will gain the most volume from 2022–27. At the same time, there are also new markets for brands to explore.

“Poland is an emerging market where the brand has seen 42% increase in value and 46% in volume (2023 vs 2022), in part thanks to the popular XO grade and complete range of vintages,” says Laborde.

Spirit France has also seen uplift in sales in other parts of Europe and Asia. “We found success in the past years in travel retail and the Italian, Eastern European and Korean markets,” says the company’s Der Sahaguian. “We’re also exploring the Netherlands and Scandinavia.”

On the downside, when it comes to accessing the growing no- & low-alcohol trend, the spirit doesn’t lend itself to adaptation. “The rules of the appellations do not allow much flexibility,” says Laborde.

However, Darroze believes armagnac still appeals to those interested in lowering their alcohol intake by drinking less but better. “People who drink non-alcoholic beverages also drink alcoholic beverages – except pregnant women and drivers, of course – and so when they do, they might decide to drink higher-quality products like a very good armagnac or a fancy cocktail. The decrease in consumption of alcoholic beverages, surprisingly, concerns wine more than spirits.”

While a raft of low-alcohol innovation may not be in the pipeline, then, armagnac’s 700-year history, craft credentials, quality cues and focus on mixology should stand the category in good stead – whatever other trends come its way.