“The ambition is to establish Camus cognacs as a prominent luxury brand”

Based in China, Cyril Camus, owner and president of the family-owned Cognac house, has reinvented the brand post-COVID crisis, no longer relying solely on the duty-free market. Today, the group has regained profitability, expanded its workforce, and invested in various areas. After opening boutiques in China and renovating bottling lines, workshops, and offices in Charente, the focus is now on expanding into the United States, the world's primary market. Cyril Camus reveals in an exclusive interview with Luxury Tribune how he plans to elevate his brand into the high-end market and establish it as a luxury brand.

After three years of growth, the cognac market is showing signs of tension; are you concerned?

Cyril Camus: Overall, I still see the market evolving positively. However, there is indeed a readjustment in activity. Half of the volumes are sold in the American market, while in terms of value, China dominates. Therefore, when your largest market in the world, the United States, experiences a hiccup, the entire industry catches a cold, as the saying goes.

What are the reasons for the slowdown in sales?

During the pandemic, the cognac market benefited from two key factors that boosted sales. Paradoxically, while bars were operating at a slower pace, significantly impacting cocktail consumption, cognac flourished. Consuming at home is generally of higher quality, with people indulging in spirits both in volume and value. Cognac after a meal regained its place, and Americans consumed more of it. The second factor that fueled sales growth was the American government's consumption assistance. Checks and money were distributed to households, significantly favoring cognac purchases.

So, were 2020 and 2021 record-breaking years?

Yes, they were two exceptional years with high growth rates. This led to supply difficulties for bottles and logistical disruptions. The collision between high demand and limited supply only resolved itself in 2022. Today, stocks have been depleted, the reduction in American administration support for consumption, and the current economic downturn explain the contraction in the American market.

Is the concern justified?

No, consumption is not declining. All of this will be resolved by 2024. There's no alarm, just a lag between manufacturing and consumption. The usual tempo has been disrupted. Aside from these hiccups, there is a constant growth in demand, matching our production capacity. Cognac is a product that performs very well. Before the pandemic, we were breaking sales records.

Is it possible to return to pre-COVID levels?

More cognac is being sold now than ever before. It's a dynamic category, driven both by overall premiumization and the development of cocktail culture, particularly with cognac. In France, the image of cognac may seem outdated, and people might think it's not selling well. However, cognac is one of the leading exports in France. Rest assured, the cognac industry is thriving.

In this context, Camus is outperforming. How do you explain this?

This is linked to our strategy of pushing further into luxury. Camus was already a high-end brand, but today we go beyond that with growth in our activity and revenue that is not tied to volume growth. We have set a ceiling of 2.4 million bottles per year, making us a modest player in the market. This limit allows us to focus on the quality of our products. Our ambition is to develop economic value without encouraging more consumption. For us, ensuring the future of our product involves respecting the land. It is counterintuitive to think of preserving the future by producing more. Moving upmarket means better valuing each bottle, not selling the same product at a higher price. This involves increasing the level of pleasure and emotion generated by each bottle, including the use of the product and satisfying the five senses. A beautiful object that impacts emotion and multiplies pleasure. Beauty and quality always go hand in hand. Our container is not an advertising billboard: when it's empty, it can be refilled. It's a beautiful object that can be preserved.

So, the future lies in refilling, as it was two generations ago?

In the coming months, we will launch carafes that are designed never to be thrown away. We have already established the logistics chain. In the past, the barrel was with the merchant. You would fill your crystal carafe at their place. We are trying to return to that, to separate the carafe from the liquid. Today, this is a consumption system that is fairly easy to conceive in Europe with the free movement of goods. But beyond that, it's complicated for customs reasons. The container must be beautiful enough not to be discarded. Our role is to create the logistics chain to allow you to do so and thus reduce the environmental impact. The other evolution is the desire to produce better qualities, offer longer aging, and turn our cognacs into works of art, beautifying your living room.

Is the environment a real concern?

Yes. We need to reduce glass weight through the study of materials, packaging, corks… and measure their recyclability. We continue daily to reduce the impact of each product we create. My goal is to double economic value while reducing volumes. We are developing our expertise in our workshops to create unique pieces and exceptional limited editions. We are the only house working on engraving, leatherwork, woodworking, glass, and marquetry internally. From our own vines to the finished liquid, everything is vertically integrated. Developing experiential elements requires this control. That's why we opened a 600m2 flagship store in southern China and residences to bring the brand to life: during a meal, for an afternoon, we are developing places where the brand will be physically represented. These are significant development avenues. A brand's universe goes beyond the product. We want to establish Camus as a prominent name in craftsmanship and luxury. My ambition is to present highly desirable cognacs to a very targeted clientele at the right time and place."