History of Cognac

Cognac itself has a rich and interesting history. According to one celebrated case, Gert v. Paczensky, Cognac originally came about as a result of producers trying to reduce heavy taxes. Before the area of Cognac was known for Cognac, it was the most famous area for French white wine. Some two hundred years ago, however, a new difficulty was introduced when the King of France decided to impose a tax on all barrels of white wine from the Charente, which is today known as Cognac.

At that time the famed white wine of Cognac was also exported to England, the Netherlands and many other countries. The size of each barrel was strictly regulated, and for each barrel a heavy tax was imposed. In an attempt to avoid this tax, a few producers started to distil the wine before it shipped. They would then arrange for water to be added once the barrels had arrived at their destination, effectively transforming the distilled alcohol back into wine. By this process, four barrels of wine could be reduced down to one barrel of Cognac. As a result, there were far fewer barrels to export, and therefore far fewer to tax.

But it wasn't long before people began to try the distilled product in the barrel before adding water to it. Not surprisingly, several customers preferred the stronger, distilled product, and did not want it being transformed back into wine again.

This was also about the same time that English and Irish producers like Hine, Hennessy, and others came to Cognac and began their trading houses and distilleries. The French knew quite well how to make wine, but the Irish and English, due to generations of whisky production, knew how to distil.

In the Cognac area there are two basic groups related to the famous spirit: the trading & distilling companies, and the wine-farmers. The wine farmers usually maintain and farm small vineyards. But after the emergence of the "big four" trading companies (LVMH, Pernod Ricard, Remy Martin, and Allied Domecq), the 1980's and 1990's saw a significant jump in acquisition and consolidation activity, and this changed the face of the industry to a significant degree. The big four bought virtually every famous brand name, but not the vineyards. But since they were able to buy themselves into a monopoly position, they are able to dictate prices to the farmers.

As a result of this consolidated market power, the number of independent Cognac producers has dropped. In the Bordeaux area, for example, there are roughly 7,000 independent wine makers. The Bordeaux region is as big as the Charente (Cognac), but in the Cognac region there are fewer than 500 independent Cognac makers left. At the same time, the big names like LVMH own more than 800 different brands.

This concentrated power can limit choice (today nearly 88% of Cognac produced is from the Big Four), but at the same time it also creates the opportunity to produce a totally different product. And that is exactly what the Greiffenclau family has done. Their Cognac is the wine among Cognacs. Unlike the large, industrial Cognac producers, they have the resources and generational knowledge to concentrate on the viticulture and vinification process on their own estate.

Within Cognac, as with other areas, soil quality varies. The area within Cognac where the Greiffenclau family estate lies is called Cognac Petite Champagne de Archiac, and the best soil within this area is called Petite Fine Champagne, which covers the family's 14 hectares.

You may have difficulty finding a bottle of "Cognac, Petite Fine Champagne" on a retail shelf because it is quite rare. And even if you do find one, it will be a poor example of the greatest soil on earth if the vine plant has been exploited as it often is, or if it has been polluted by chemical fertilizers.

To add to the confusion, you may see the words "Fine Champagne" on the label. This is not a special region, but rather is the general definition of Cognac which originates from the areas of Grand Champagne (50%) and Petite Champagne (50%).

Myths about Cognac

The Greiffenclau family likes to point out several myths surrounding Cognac. Here are three of them:

Myth #1: Only a Cognac assemblage is good

How can bad ingredients create a superior meal? It is very simple, if a company produces on an industrial level with millions of liters delivered from over 3,000 sources, it is forced to mix and add liquid caramel in order to make sure that the Cognac bought in the supermarket last year tastes exactly the same as the Cognac bottled this year. We occasionally refer to this as socialism in a bottle: All equal, but at the lowest level.

Myth #2: Cognac gets better year by year in oak; therefore, XO is a quality mark

Pure nonsense. Let's look at an example of a great Bordeaux producer to see why. Well-known, Grand Cru wines have about 12.5 % in alcohol. A worldclass winemakers puts its Bordeaux in oak barrels for 12 - 18 months. Any longer than that, and the tannins released by the barrel would destroy the wine.

Now, what is the logic behind putting Cognac-which is 65% alcohol-in an oak barrel for 6 years?

It is a peculiar commercial logic that evolved from a historical misunderstanding. Whisky distillers add aromas to their product by mixing water to the distilled crop, and storing that mixture in oak. The crop used for whiskey production by itself does not have much taste. So over several years of barrel fermentation, chemical processes occur to the whisky, enhancing its taste.

But wine is not a crop, and the Charentais were winemakers, not distillers. The Irish and English distilled the wine using processes they had learned from the whisky production process, and this continues even until today.

Wood is of course semi-permeable, and the alcohol washes out the taste of the oak. At the same time, however, alcohol evaporates, taking with it good, fruity aromas. With 65% alcohol, it takes far less time to wash out the aromas of the oak barrel than with 12.5%. After the aromas have been overpowered by the alcohol, then the Cognac starts losing its wine character and turns into a product more closely resembling whisky.

XO only means a Cognac was six years on wood. It does not say anything about the quality.

Myth #3: Bad wine makes good Cognac

Ask a good chef if he thinks a superb meal can be made from second rate ingredients. Or ask a good winemaker if mediocre grapes could make a good wine. You only reap what you sow.