Introduction: Over recent years a new force has emerged in the world of Cognac – Duc de Fugue. But while the brand has attracted increasing attention within the travel retail and drinks industry and among liquor enthusiasts, it is still relatively unknown among the wider public. In this exclusive interview The Moodie Davitt Report Founder & Chairman Martin Moodie met Duc de Fugue Cognac President Roger Wang to discover the mystery and potential of the brand.
The Moodie Davitt Report: Ten years ago you set off to France hoping to buy a winery. You made an acquisition, but it wasn’t a winery. Tell us what changed your mind and what made you invest in Cognac.
Roger Wang: Back in 2009 as relationships were increasing between China and France, various fine red wines quickly entered the China market and were much favoured by Chinese consumers. This led to the rapid expansion of the French fine wine market.
During my travels to France ten years ago, I visited dozens of big and small wineries, from Burgundy to the Loire Valley, from Bordeaux to Languedoc, exploring from place to place. At one point I was invited to visit Cognac and talk with numerous cellar masters, where I learned that Cognac was positioned in France as equivalent to Moutai in China.
The unique geographical location of Cognac results in a significant supply scarcity in the world. The spirit produced in this area is protected by local laws and regulations, making Cognac a premium and rare category, so we decided that investing in the sector was undoubtedly our best choice.
What drove your interest in this category?
People with similar interests always find a common language. Travelling to different places, tasting famous wines and spirits, and exploring the charm of cigars are all methods of finding joy in the world.
Before I visited Cognac on my trip to France, I had always been deeply attracted by this unique and romantic ‘eaux de vie’. Afterwards Cognac became an essential part of me.
And how did you discover Cognac Duc de Fugue?
As an enthusiast of fine wines and spirits, I often travel to Europe for investment and business reasons. During a visit to France, I met an investor from Paris and was invited by him to visit a Maison located in the heart of Cognac.
I had in-depth exchanges with the old Maison owner and his two sons, who are now General Manager and Cellar Master. I become interested in this unique area and was impressed by the excellent quality of their Cognac.
After that, I visited Cognac several times together with friends and experienced tasters, coming with the vision of a Chinese to bring a traditional and premium Cognac brand and its outstanding quality ‘eaux de vie’ to China and the world.
Finally I decided to invest in Cognac, and start the journey with Duc de Fugue.
At that time, the firm was renowned for producing Cognacs for other houses rather than its own brand. How did you go about the challenging job of developing it as a brand in its own right?
Cognac is one of the most high-end spirits in France. Back in 1789, the first batch of Cognac from Duc de Fugue Maison was successfully distilled in the Grand Champagne region. The Cognac produced from this cru is renowned for its uniquely rich taste and high quality.
The best Cognac has been passed from generation to generation for over 200 years. Yet despite its long history and superior quality, the house only produced Cognac for other brands in the past. As an investor, I felt regretful about this.
To bring products to the world, branding is imperative. After five years’ thorough preparation, from product to packaging to brand, Duc de Fugue Cognac was officially launched in the spring of 2016, taking its first step towards globalisation.
Tell us about the range, which, unusually, includes some rare vintage Cognac expressions.
Duc de Fugue Cognac’s product portfolio extends from the entry point VSOP through Victory to XO and XO Black. Then the range continues from Extra to ultra high-end products such as Etoile 1975 and 1977 vintage Cognac and Diamond.
Duc de Fugue Diamond is blended from almost 100 long-aged eaux de vie. It is packaged in a customised crystal glass decanter perfectly cut as a diamond, each with a unique identity code.
Diamond has a rich and mellow flavour, long and gentle taste and a smooth sense of harmony. The rare 1975 and 1977 vintage Cognacs from Petite Champagne preserve its fine taste and flavour. It is rare and precious, worthy of tasting and collecting. We will explore a further broadening of our product portfolio to meet the trend of consumer segmentation and premiumisation.
Duc de Fugue Cognac entered the Chinese market in 2016 and several operations centres have since been established, including in Hong Kong, Shanghai, Beijing and Shenzhen. Tell us about the brand’s journey since in China, overseas and also in travel retail.
Duc de Fugue Cognac products are sold worldwide and the Maison has established good cooperation with several well-known duty free groups such as Dufry, China Duty Free Group, CNSC Duty Free, Shenzhen Duty Free, Zhuhai Duty Free, Hainan’s Global Duty Free Plaza, Hainan Tourism Investment Duty Free Corporation and Wangfujing Duty Free. It also has more than 30 downtown partners across Greater China.
Duc de Fugue is also sold in various premier supermarkets and ecommerce platforms in China (such as Ole, Baoshuhang, Guoyang, Tianhong, Tmall and JD.com etc.), and has been increasingly recognised by many consumers.
The brand is developing overseas markets, including the US, Thailand, South Korea, Singapore and Taiwan and in the near future will be available in many more overseas retail channels.
How important is travel retail to the brand?
As tourism recovered and grew strongly during 2023, Duc de Fugue Cognac has been driving growth in the travel retail channel.
Airports and border stores are important windows for brands to show products to the world, as well as presenting excellent shopping environments for high-value consumers. Travel retail plays an indispensable dual role in terms of brand exposure and product sales.
We aim to sell products into different travel retail markets by focusing on the different demands of each area. To boost its presence, Duc de Fugue has participated in some high-level exhibitions such as the China International Import Expo and China International Consumer Expo in recent years.
Duc de Fugue Maison’s first flagship shop celebrated its official operation in the Times Duty Free mall at Mission Hills in Haikou, Hainan in 2023 after a soft opening in 2021. Here, consumers can taste and purchase a wide variety of products and make friends with fellow Cognac enthusiasts, enjoying the best one-stop shopping experience.
How have critics and consumers reacted?
High quality has always been Duc de Fugue’s aspiration. The continuous upgrading of alcohol consumption is also bringing huge market opportunities for our high-end positioning. Duc de Fugue Cognac has been recognised by many consumers for its outstanding taste and quality, high-end packaging design and high cost-effectiveness.
Our Cognacs have won awards in various international wine and spirit competitions, which is both great recognition and encouragement to us.
These achievements are attributed to our continuous pursuit of quality and insight into customer needs. Consumers expect to have a wider range and more options within categories. In that regard, as I mentioned, Duc de Fugue Cognac provides products covering grades from entry point to high end to meet the needs of different consumers.
Sum up for me your greatest challenges and successes to date.
For Duc de Fugue’s globalisation, the biggest challenge is how to evolve in terms of optimising the entire industry chain, not just in product quality and price.
From grape planting to agricultural industrialisation, and across product, packaging and supply chain, all aspects are critical in terms of fulfilling the upgrade needs of consumers, and ensuring Duc de Fugue’s sustainable development throughout the chain.
The success comes from consumer recognition. Many Cognac enthusiasts and other consumers have experienced Duc de Fugue Cognac through different travel retail and domestic market channels, and become our loyal fans. Thanks to such consumer recognition, Duc de Fugue Cognac is joining the ranks of premier spirit brands and increasing its market share every year, becoming renowned by word of mouth as a high-quality Cognac.
Having your own vineyards in the heart of Cognac ensures you can serve the brand’s long-term growth. How optimistic are you for the future and where would you like Duc de Fugue Cognac to be in five years?
The Bureau National Interprofessionnel du Cognac (BNIC) recently released data showing that in the past 12 months French Cognac exports globally have declined. But in China, Cognac imports have increased by more than +20% against the trend.
Therefore, we have high expectations for the Greater China market in 2024. Cognac, as an internationally popular liquor, enjoys a deep recognition and cultural heritage. It represents a high-quality spirits category that meets the needs of consumer for a high-quality life.
I hope Duc de Fugue Cognac becomes a first-tier Cognac brand in five years. We are continuously driving and breaking through in all areas from globalisation to all kinds of marketing activities.
Any final message to retailers reading this in China and abroad?
What I want to say to our existing retailers and our future partners of Duc de Fuge Cognac is “Believe in the power of belief”.
As we develop Duc de Fugue Cognac, we will accelerate supply chain optimisation and expansion in various markets and channels. Although the process is full of challenges, once the target is established, we will move forward bravely without fear.
Finally, we hope to work together with all the retailers who love Duc de Fuge Cognac to achieve mutual benefit and help it become a world-class brand. ✈
This interview was first published in The Moodie Davitt China Travel Retail Report, February 2024 issue. Click on the image below for access.
