with correspondents in Japan, Russia, USA, Sweden; edited by Simon Palmer

Last September's dramatic events provoked fears for the American market as well as for airport and travel related sales. The U.S.A. represents close to 40% of the total volume of Cognac sold in bottles, some 40 million in 2000. BNIC statistics on shipments do show a slow-down in the final quarter but this was in the first two months and the situation was reversed in December with +10% compared to 2000. The end result for 2001 was a 2.9% increase. This information is confirmed by Hennessy, market leader with nearly 50% of total volumes. In a LVMH statement on the group's final quarter results the month of December 2001 is equal with the previous year and this despite a drop of 6% in October. The travel related sector is in difficulty but the US domestic market remains strong and contributed significantly to the 6% increase in global Cognac volumes in 2001.

08 January 2002