Cognac: a collector’s guide

Victor Hugo once described cognac as ‘the liquor of the gods’. But why is it that this quintessential after-dinner spirit — which can be served decades and sometimes centuries after barrelling — can now command six-figure sums at auction?

The history

During the 16th century, Dutch merchants began distilling French wine in order to help it survive choppy seas on the way back to Holland. The resulting liquid was named brandewijn, or ‘burnt wine’ — what we call brandy today.

By the 18th century, brandy houses began laying roots in the Cognac region of south-west France, ageing locally distilled brandy — eau de vie (water of life) — inside wooden barrels. The result was named cognac.

Today, all cognac is brandy, but not all brandy is cognac. And while brandy can be distilled anywhere (grappa in Italy, pisco in Peru, Metaxa in Greece), using wine made from a variety of fermented fruits (calvados from apples, pálinka from plums), the location, materials and methods that define cognac production are tightly controlled to ensure it remains so lauded. In other words, cognac is to brandy what champagne is to sparkling wine.

The method

In 1936, cognac became one of the first products protected and regulated by France’s national appellations body. Since then, by law, it has to be made with grapes grown in one of the six appellations, or ‘crus’, which span 86,000 hectares of Cognac’s vineyards: Bois Ordinaires; Bons Bois; Fins Bois; Borderies; Petite Champagne; and Grand Champagne. Each of these areas has a unique terroir, giving the various cognacs distinct aromatic profiles.

The majority of the wines used to make cognac are from Ugni Blanc, a grape known for its high yield and subtle aromatic character, which retains freshness while producing a liquid low in alcohol and high in acidity.

The rules stipulate that this wine must be twice distilled in copper to create the eau de vie. Around 10 litres of wine produces just one litre of cognac.

Most cognac producers work with preferred cultivators and distillers to source ready-made eau de vie. Their art, they say, is in the ageing and blending processes.

The ageing

To create cognac, the eau de vie must be aged in French Limousin or Tronçais oak barrels for a minimum of two years. This is where the liquid transforms from clear to deep amber, as it extracts the colour and flavours of the wood.

The temperature and humidity of the cellar, as well as the variety, size, age and ‘toasting’ of each barrel are fine-tuned to imbue the cognac with distinct qualities.

Ageing is counted from 31 March each year — cognac’s ‘birthday’. The most common grades of aged cognac are:

V.S. (Very Special): A youthful blend in which the youngest brandy has been cask-aged for a minimum of two years.

V.S.O.P. (Very Superior Old Pale): A vibrant blend in which the youngest brandy has been cask-aged for a minimum of four years.

X.O. (Extra Old): A deep blend in which the youngest brandy has been cask-aged for a minimum of 10 years.

X.X.O. (Extra Extra Old): The most complex blend, in which the youngest brandy has been cask-aged for a minimum of 14 years. This designation was only introduced in 2018.

Other, less common designations include Napoléon, which is aged for six years, or Early Landed, which is aged in Britain.

During the ageing process, the alcohol content reduces from around 70 per cent to some 40 per cent, as the ‘angels’ share’ evaporates from every barrel.

Currently, there is the equivalent of around two billion bottles of cognac resting ‘on the wood’ across the region’s cellars. Around 32 million bottles’ worth evaporates each year.

The blending

Once the cognac has reached its desired maturation, the liquid is decanted into glass, where — unlike wine — it stops developing. A handful of producers make ‘vintage’ cognacs, which contain only eau de vie from a single year’s harvest, but the overwhelming majority is blended from multiple vintages.

It’s the role of a master blender to marry different cognacs of varying ages and locations to create the house’s signature style. Some bottles might contain several hundred different vintages and crus.

The producers

Historically, there have been four key players in the cognac industry.

Martell

The oldest of the great cognac houses, Martell was founded in 1715 by Jean Martell, a native of Jersey.

By 1783, Martell was shipping cognac to the fledgling United States, and not long afterwards, despite England and France being at war, was granted an export-ban exemption to satisfy the demands of King George III. By 1886, Martell cognac was being enjoyed in China and Hong Kong.

Today, Martell holds more than 12,000 eau de vie vintages in its cellars. The oldest it uses dates back to 1813.

In 2023, Martell released one of its finest ever cognacs. Made from grapes grown in Grand Champagne — renowned for their richness, power and notes of acacia honey and orange blossom — it had been aged for a minimum of 70 years. Only 70 bottles were ever released, each one in a handmade Baccarat crystal decanter.

This year Martell has released a 72-Year-Old Grande Champagne Cognac for sale at Christie’s. This unique cognac was born from a single eau de vie from a single cru in the prestigious Grande Champagne region and is in a one-of-a-kind crystal decanter created by Baccarat.

Hennessy

The world’s largest cognac producer, Hennessy was founded in 1765 by Richard Hennessy, an Irish military officer who served in the army of Louis XV.

In 1806, his son James Hennessy employed Jean Fillioux, originally a cooper, as the house’s master blender. Since then, eight generations of the Fillioux family have occupied the same role.

In 1817, Hennessy coined the V.S.O.P. designation for a new cognac developed for the Prince Regent (later King George IV). Some 50 years later, it was also the first producer to use the X.O. designation.

Courvoisier

The company has its origins in a wine business founded by Louis Gallois and Emmanuel Courvoisier on the outskirts of Paris in 1796. Their sons opened premises in Jarnac in 1828 to focus on cognac production, and this became the heart of the business. Courvoisier’s cognac was selected to be served at the dinner marking the opening of the Eiffel Tower in 1889. In 1909, the company was purchased by the Simon family from England.

In 1988, Courvoisier released the Erté Collection, a set of seven bottles of cognac featuring artwork by the Russian-born French artist Romain de Tirtoff, also known as Erté. In 2008, an eighth was added to the line-up, which includes eau de vie dating back to 1892 — the year of the artist’s birth.

In 2021, Courvoisier partnered with the Japanese whisky producer Suntory to create a Grand Champagne cognac part-matured in rare Japanese Mizunara oak. Only 500 bottles of Courvoisier Mizunara were made available across the world.

Rémy Martin

Founded in 1724 by a vintner of the same name, Rémy Martin is the only one of the big four houses to produce cognac exclusively from the Grande and Petite Champagne crus. In 2003, it also became the first major house to appoint a woman, Pierrette Trichet, as its cellar master.

There are many more active cognac producers — some 280 in total. Among the best-known of these houses are Delamain, Hine, Prunier, Frapin, Croizet, A.E. Dor and Gautier — which holds the world record for the most expensive cognac to appear at auction: a bottle distilled in 1762 sold for £118,580 in 2020.

Other particularly collectable bottles come from producers that have long been closed, including Clos de Griffier, Saulnier Frères, Bignon and Brillard. Many of these defunct houses made vintage cognacs — some distilled back as far as the 1700s — which still appear at auction.

The market

Around 97 per cent of cognac is consumed outside France, and in recent decades its popularity has surged across the US, Africa and Asia.

And yet, despite being produced in a similar way to whisky, the most precious bottles of cognac can cost a fraction of the price — even expressions that are hundreds of years old. As with all all wines and spirits, however, the key things to consider as a collector are rarity, condition and provenance.

Fine and Rare Wines & Spirits Online, Featuring Ancient Cognac and Part II of The Historical Vintage Port from the Cellars of Raby Castle is live for bidding until 6 December 2024, alongside The Cellar in the Mountain: Pristine Wines from the Skigaarden Collection (until 5 December) and Château Mouton Rothschild 2022 Artist Reveal: Unique Lot and Experience (until 11 December)