INTERVIEW-Martell cognac chief says aims to double sales

Martell, the cognac brand of French drinks group Pernod Ricard is betting on recovering demand in China, and growth in the U.S., travel retail and Africa to double sales within 10 years, its chief executive told Reuters.
Martell numbers alongside Ballantine's whisky and Absolut vodka among Pernod Ricard's 14 strategic brands and is the top sales and operating profit contributor at the world's second-largest spirits maker after Diageo
"Over 10 years we have doubled our sales volume," Philippe Guettat, CEO of Martell Mumm Perrier-Jouet, said in a phone interview. "We can reasonably expect to do the same in the next 10 years and reach 4 million cases."
Martell sold 1.9 million cases last year, making it the world's second-biggest cognac brand behind Hennessy, which sold more than twice as much.
Analysts estimate it contributes around 10 percent of Pernod Ricard group sales and 12-13 percent of operating profit. China accounts for more than half of Martell's sales volume
it is the country's top cognac brand - but a crackdown on conspicuous consumption that started there in 2013 sent net sales 9 percent lower in 2013/14.
The launch of lower-priced cognacs such as Martell Noblige, sold for 70-80 euros, has helped lead to signs of improvement in China, however.
"The Chinese market has regained growth momentum, and Martell is benefiting from it as it gains market share, but it's hard to say when higher-priced cognac will recover," Guettat said. "In two years, possibly next year, we may be back to our highest levels in volume, but in value it may take longer."
In the United States, where it makes 5 percent of its sales volume and ranks fifth behind Hennessy, Remy Martin Courvoisier and Salignac, another Courvoisier brand, Martell feels "like an outsider", Guettat said.
"We must regain ground in the U.S.," he said. "Our mid- to long-term goal is to be among the top three best-selling cognac brands."
To achieve that, Martell aims to increase the availability of its cognac in U.S. stores and is banking on its Martell "Caractere" cognac, priced at $30 a bottle.
Martell also wants to tap growing demand for international spirits in Africa, notably in Nigeria, as South Africa has long been Pernod's only foothold on the continent.
Martell celebrates its 300th anniversary this week with limited editions including the 10,000 euro ($11,108) "Premier Voyage" blend in a Sevres crystal decanter.