Interview: Rémy Martin CEO Eric Vallat

Veteran luxury goods executive Eric Vallat was named CEO of Rémy Martin Cognac in January of 2014. In the nearly three years since Vallat took the helm, Rémy Martin has unveiled a global “One Life/Live Them” campaign heralding multifaceted cultural contributors such as actor/musician Jeremy Renner, and sought to connect with consumers via initiatives like La Maison Rémy Martin, an interactive pop-up brand concept making stops in New York, Chicago and Los Angeles this fall. Meanwhile, the brand has prospered in the U.S., growing by 23% over the past two years to reach 765,000 cases, according to Impact Databank. SND senior editor Daniel Marsteller recently met with Vallat to discuss Rémy Martin’s growth amid the Cognac boom.

SND: What’s the update on the Rémy Martin brand in the U.S. market?

Vallat: We’re enjoying very good momentum in the U.S. (Editor’s note: Rémy Martin VSOP grew 16.6% in IRI channels in the 44 weeks through October 30). There’s a general trend toward craft and authenticity, which favors aged brown spirits. We’re well-placed within the category, being recognized as the Fine Champagne brand—the one picking its grapes from the heart of the Cognac region, the more selective eaux de vie. We’ve quit the VS segment, and we’re playing more at the high end. Today, we sell more VSOP ($40) and 1738 Accord Royale ($50-$60) than our combined VS and VSOP volumes of five years ago. We’ve increased volume while repositioning at the higher end. 1738 is a fantastic weapon. The expectation for crafted products helped it pick up a few years ago, and I don’t think it’s done yet. It’s growing at strong double-digits year-over-year. I also strongly believe in the potential of our XO ($150-$160).

SND: What was the impetus behind the La Maison Rémy Martin experiential initiative?

Vallat: We’re aiming to have a direct relationship with our clients. We’re in an industry where you have many layers between the producer and the final client. The more you can tell about who you are through digital and experiential the better. La Maison is the beginning of a story, not a one-shot event. We’re beginning a relationship with the people who register to come to the Maison. We could imagine it being a kind of yearly rendezvous with evolving content—that’s what’s happening in the U.K., which is the other country where we’re doing La Maison. In the 1990s, people were buying logos to signal that they were successful. Today the quest is more toward two things: authenticity and experience. La Maison represents both.

SND: How has the larger One Life/Live Them campaign been received?

Vallat: We launched One Life/Live Them about a year and a half ago, and it’s a campaign that’s meant to last. It’s a worldwide campaign focused on “slashers,” or multifaceted individuals, and it will have many faces over time. We used to have one campaign in the U.S. and another in China. As a lifestyle brand, our clients are traveling worldwide and we need to be consistent everywhere. We needed a unifying concept—and this has proven to work. That’s one element of success. The second is that our surveys show the campaign has been well-received and has contributed to rejuvenating the brand. Not that we’re losing our loyal clients (while attracting younger drinkers), because I don’t think being a “slasher” is a question of age. It appeals to everyone. The campaign has been successful, but there is much more to do, many more creative ways of treating the topic.

News Briefs:

•For many Napa Valley vintners, 2016 extends a run of exceptional years for Cabernet Sauvignon to five in a row. Their only regret is that there wasn't more fruit. Almost every year from 2013 on has seen lower yields for Cabernet, and many believe drought is a factor, impacting the overall health of the vines. “Some lots taste so good they could be enjoyed without barrel aging,” said Caymus Vineyards owner Chuck Wagner, who’s been making Cabernet in Napa since the 1970s. The even temperatures throughout the growing season pleased him. “For the entire 2016 season Napa had none of the terrific heat spikes our valley is known for—this held back vine stress.” Wine Spectator has a full report on Napa’s 2016 harvest.

•Frederick Wildman & Sons has been named the U.S. importer for the Rhône’s Vidal-Fleury. Owned by the Guigal family since 1984, Vidal-Fleury was previously imported by Deutsch Family Wine & Spirits. Vidal-Fleury managing director Guy Sarton du Jonchay said that coinciding with Wildman’s appointment the winery has reviewed the quality and style of its wines with an eye toward re-energizing the brand in the U.S. market.

•Iowa-based Templeton Rye, part of the Infinium Spirits portfolio, is set to launch a new Special Reserve label this December. A 10-year-old offering made with liquid from 34 barrels, Templeton Rye Special Reserve will be packaged in a commemorative box and limited to 6,080 bottles ($150 each). The launch comes on the heels of Templeton’s rollout of a 6-year-old limited edition rye (around $50) earlier this year, with both expressions joining the brand’s core rye offering (around $40).

•Excelsior Wines’ Little Black Dress has partnered with country musician Jana Kramer in a collaboration that will include promotional appearances, exclusive concerts and social media initiatives. Kramer, who is currently featured on ABC’s “Dancing With The Stars,” begins her alliance with Little Black Dress in February 2017. Little Black Dress, which generally retails for around $10-$12 a 750-ml., sold 116,000 cases in the U.S. in 2015, according to Impact Databank—a 10.8% decline from the previous year.

Craft Brewing And Distilling News:

•Fort Collins, Colorado-based New Belgium Brewing Co. will enter the Massachusetts market early next year, bringing its distribution footprint to 46 states. The craft brewer has partnered with Girardi Distributors, Atlas Distributing Inc., L. Knife and Sons, Craft Brewers Guild, Seaboard Products and Williams Distributing for distribution in the Bay State. New Belgium will debut on draft and in bottles with Fat Tire, Ranger IPA, Citradelic IPA, seasonal releases and sour beers like La Folie. New Belgium’s sales volume last year was around 930,000 barrels, down from 945,000 the previous year.

•Escondido, California’s Stone Brewing Company is releasing a new brew, Stone Ripper, exclusively in its home state this week, with national distribution planned for early next year. The new Pale Ale offering is brewed with Cascade hops from the Pacific Northwest and Australian Galaxy hops. Stone Ripper (5.7% abv) will be available in six-packs of 12-ounce cans and on draft. Stone is currently ranked as the 10th-largest U.S. craft brewer, according to the Brewers Association.

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