Hennessy aims to tap explosive Korean sales growth

Life & Style

Published: 06 Jun. 2023, 16:58 Updated: 06 Jun. 2023, 21:21

Hennessy aims to tap explosive Korean sales growth

Hennessy CEO Laurent Boillot [CLO LE GUAY]

Distilled spirits such as cognac and whisky — long regarded as drinks for older men — are growing in popularity among young Koreans. Trendy bars are popping up here and there, appealing to young men and women who are there to grab a drink, “not in excess, but in style,” a new drinking culture that Hennessy wants to introduce to Korea with its cognac.

Hennessy, a cognac brand owned by Moët Hennessy, LVMH’s wine and spirits arm, is paying attention to Korea, where it saw an 83 percent increase in sales last year. Champagnes such as Moët & Chandon or Dom Pérignon, both owned by Moët Hennessy, have always been popular in the country, but the rapid increase in the popularity of its cognac line led its CEO Laurent Boillot to eye Korea as Hennessy’s “new growth engine.”

“I like the sophistication of Korea. It’s a country of culture,” said Boillot, who was in Korea last week on his first visit under his current title. After joining LVMH in 2002, Boillot became CEO in January 2020.

“Because of its culture, I think Korea now has this reputation of being a great influencer as far as luxury is concerned,” he said. With only two days to spend in Seoul, Boillot dropped off his luggage in his hotel room as soon as he arrived and visited some of the hippest bars in Seoul.

“I met different owners of the bars and also got to try a cocktail one of the bartenders mixed for me with ginseng and cognac, which was great,” said Boillot. “The bars were very well-managed and the bartenders really knew what they were doing. They knew a lot about whisky but when I talked to them, they knew little about cognac. They did not know where it came from so when I told them the story, they found it interesting.

It’s a matter of education. We saw this great leap in Korea and it was possible because we are just starting. So we have to educate our consumers here and grow together.”

Cognac and whisky are both distilled spirits, but cognac is a type of brandy made from white wine grapes while whisky can be made from a variety of grains such as barley, wheat and corn. Cognac shares its name with a region in France.

To hear more about Hennessy’s cognac and Boillot’s plans in Korea, the Korea JoongAng Daily sat down with him for an interview at Moët Hennessy Korea in Gangnam District, southern Seoul. The following are edited excerpts from the interview.

Hennessy X.O, one of Hennessy's most popular cognac sold in Korea [HENNESSY]

Q. Hennessy saw an 83 percent increase in Korean sales last year. What do you think was the reason behind such great leap?

A. Doubling the business in one year is a sign that there is potential. The start point was low, but it also indicates that Korean consumers have an appetite for Hennessy cognac. That is why we need to educate people and talk about brandies and cocktails and discuss about how they are crafted. When I say we need to educate consumers, I say this with no arrogance, but in a humble way. When I say that Hennessy is by far the spirit leader worldwide, we have earned that position. So in some countries, we need to educate consumers. It will take the time. I definitely see a lot of potential in Korea and there needs to be a lot of education. But I see great energy and I am fascinated by the culture, and Koreans will likewise be fascinated by Hennessy.

Hennessy has formed a partnership with the National Basketball Association (NBA) and became the official spirit of the NBA. What is the story behind that?

What is great about the NBA is its culture. We partnered with the NBA because it is not just any sport association. There is something about it, which is the culture. Most sports are about what is happening on the court or on the field. But for basketball, there is culture outside the court, which is not the case for any other major sports. With Hennessy’s clout, we could have partnered with the NFL or a big football league, but there is no such thing as football culture outside the field.

It relates to so many people and not just the young ones. There is also this sense of community, meaning that it is a sport that is able to bring together so many people from different backgrounds. Although it is a sports game, there’s street art, there’s music and there’s fashion. That’s the kind of game we want to enter. That’s the kind of culture we want to join because that’s how the brand was developed centuries ago.

Partnering with the NBA of course will seem like we are targeting younger consumers, but it’s not just about that. We did not start this project just to appeal to the younger consumers. We are fascinated by older people who want to do something together with this culture and who want to share it with others. That’s the game we want to play in.

In 2020, not long after your appointment as CEO, you organized this collaboration project with New York -based Chinese artist Cai Guo-Qiang, who created “The Birth of Tragedy” daytime fireworks to mark the 150th anniversary of Hennessy X.O cognac on the Charente River in Cognac, France. Do you have plans to collaborate with a Korean artist for any upcoming anniversaries?

I would love this idea. I have been working with LVMH for 22 years now and when I started here, I was following what I call the LVHM caravan where you go from one store to another. One day, I was in China, and I said to myself that I have to get out there and truly understand the culture so I went directly to the Shanghai Museum. Since then, every time I travel, I dedicate a part of my time to getting to know the culture, trying to really understand it. Because I think that’s what really matters. It was the case while I was working in the beauty industry and even more important as I’m in the spirits industry because it’s about life.

Earlier, I was explaining to the Korean team that I understand why we are popular with Black Americans in the U.S., which is because we have cultivated a close relationship with them for 120 years, developing with them, educating them and being a part of their lives. We are strong in China because we entered the market rapidly beginning in the southern provinces, and brought our cognacs to Chinese tables by pairing it with the local cuisine. And now we are in Korea and I want to find the right culture to connect with Koreans. It is easy for me to find a specific blend or a specific bottle that would appeal to Koreans. But that’s not enough. How can I connect with the people?

To do that, I have to understand the culture. What is the conduit via which we can really get to know each other more? If there is a Korean artist who we can work with, who can act as that channel, that would be really great. But it has to be an organic connection. We do not want someone to create an artwork for us and finish there. We want a true collaboration. We want to invite the artist to France, to Cognac, to discover our culture as well. It has to be an exchange. The artist has to understand us and we have understand them to be truly connected.

I know that Hennessy is quite serious about sustainability. Can you tell our readers about your current sustainability programs?

Sustainability is very important and something we take very seriously. Why? If there is no living soil, or proper soil, there will be no proper vines. If there are no proper grapes, it means there is no proper eaux-de-vie, which means there is no Hennessy. So it is literally a matter of life or death for us. I could pretend that I am doing sustainable development for the sake of mankind. In fact, this all began to protect the company. But when you start something to protect the company, you learn something important and you start seeing other things and then you may want to contribute to something larger than your company. That’s what we are doing.
We have several programs. The Living Soils program involves growing trees that will be helpful to the vines in about 80,000 hectares of vineyards, solely for research and development purposes.

We also have a Living Landscape program that aims to transform the landscape of vineyards by 2050. By working on these programs, we can understand the value of the forest and trees, which even led us to finance a huge program on forest renovation. There are so many things to be done in this area so I am pushing not only my company but also LVMH and other companies in the group to really make a big move. We need a collaboration here and an ambition that will grow beyond vineyards.

BY YIM SEUNG-HYE [yim.seunghye@joongang.co.kr]

BY YIM SEUNG-HYE [yim.seunghye@joongang.co.kr]