Fine French Cognacs: Weak Euro Will Help Spur Sales Of Cognacs In The U.S. And China, The Top Two Markets

http://www.comandon.com/

“…cognacs are all produced in France, a country that no longer drinks very much cognac. Instead, demand in China and the US is booming…”

(From an FT.com article)   The euro is probably still overvalued against the US dollar. For most eurozone exporters the problem is not so much how much lower the euro will go but the risk it could climb back from its current level of $1.23 to $1.3 or more.

Analysts also regard the luxury sector as a potential big winner of the weakening euro. Companies such as LVMH or Remy Cointreau produce essentially in France or in Italy their luxury accessories and drinks brands and sell these mainly in emerging countries, Japan and the US. Hennessy or Remy Martin cognacs are all produced in France, a country that no longer drinks very much cognac. Instead, demand in China and the US is booming.

For more:  http://www.ft.com/cms/s/0/6ca95688-6213-11df-998c-00144feab49a.html