Martell Makes Bold U.S. Move To Lift The Cognac Market
Martell is making a play for the cocktail space.
'Make It With Martell' is an expression that American consumers will encounter from this summer onwards as the cognac brand puts in place a new strategy to persuade drinkers to replace key spirits in their favorite cocktails with Martell.
Leading the charge is acclaimed mixologist Rémy Savage, whose multiple projects include the lauded Bauhaus-inspired A Bar with Shapes for a Name in East London. Savage's team has created a series of cocktails for Martell designed to redefine traditional ways of making popular mixed drinks; from a negroni and margarita, to mint julep and mojito.
On World Cocktail Day on June 5, Savage and Martell's global marketing director, Sébastien Borda, jointly reopened L'Indigo Bar, in Cognac, France. This marked the official summer residency of the mixologist at the rooftop venue at the Martell Foundation, said to be the highest point in the town with spectacular 360-degree views of the region.
More importantly, the opening sets in motion the 'Make It With Martell' global campaign, starting in the United States—the world's biggest cognac market by volume—where a series of cocktail programs will begin across bars, hotels and other hospitality venues in big cities. Together, these activities form part of a bigger, sustained strategy that is, in effect, a new platform designed to make Martell a go-to substitute spirit in popular cocktails—and the entire cognac category by extension.
Swapping out key spirits in favorite cocktails is a bold move, but Martell is convinced it is on the right track, not least because it takes cognac back to its often forgotten roots when it was a well tried and tested spirit in mixed drinks. The 1930s book 100 Famous Cocktails prepared in collaboration with Oscar Tschirky, maître d'hôtel of the Waldorf-Astoria Hotel in New York, lists a series of cocktails with cognac at their core.
Cognac was a popular choice in cocktails in the past according to Oscar of The Waldorf.
Bringing cognac back to the center of cocktail culture is now a primary objective for Maison Martell, founded in 1715. As the oldest of the four major cognac houses which include Campari-owned Courvoisier, Hennessy, and Rémy Martin, it is perhaps fitting that it is taking a lead in a revival.
In his first interview since talking the marketing reins at the brand a year ago, and referencing the new campaign, Sébastien Borda told Forbes.com: 'This is really a central point of our strategy. The Martell business is heavily reliant on Asia and, as we know, the context is quite difficult. So we are accelerating our efforts in the U.S and Africa as regions for potential growth.'
Make It With Martell is kicking off in the United States because its parent, drinks giant Pernod Ricard, regards the country as an opportunity for expansion. In mid-May, Conor McQuaid, chairman and CEO of Pernod Ricard North America said that while consumers were 'making more cautious choices', spirits were continuing to take share from beer and wine. In 2024, spirits represented 42% of beverage alcohol in value versus 35% a decade ago.
Sébastien Borda: 'We feel that cognac, and Martell in particular, can take on any classic and bring ... More something new to the on-premise.'
The CEO added: 'Cocktail culture is thriving, especially with cordials and RTDs having doubled in size over the past few years and still growing at 20% year-over-year.'
Borda commented: 'In the U.S. we will push into the on-premise where the cognac category hasn't been particularly active. We want to be part of what will probably be a broader movement, with other cognac houses also playing their part.'
Something has to change as cognac sales have been under immense pressure. In the first calendar quarter of this year, Pernod Ricard—whose brands include Absolut, Chivas, and Jameson—noted a 4% decline across its strategic international labels. Good growth for Jameson, Chivas Regal, Ballantine's and Absolut was undone by declines at Martell and Royal Salute whisky.
Swapping out the gin for cognac in a Negroni makes for a smoother sip, according to Rémy Savage.
In the same period, rivals saw even greater falls. LVMH's cognac and spirits sales were down by 17%, hit by soft demand in the U.S. and China, while Rémy Cointreau saw sales in its cognac division plunge by 33% on an organic basis in the quarter. The uncertainty around Trump's tariffs has not helped.
Martell's strategy rests on its belief that its liquid—made by distilling clear wines as its point of differentiation—is highly suited to mixing, especially at the VS and VSOP entry level. This can bring new consumers into the category. 'Some see cognac as only for certain types of (more formal) occasions but we're going to show them that it can make perfectly balanced, rich, aromatic cocktails,' said Borda.
Rémy Savage: 'Through experimentation I found that cognac was a very generous dance partner due to ... More its complexity in the wood and aroma.'
The cocktail scene is already thriving in the U.S. so Martell will bring an air of experimentation and exploration to the market. The marketing director added: 'We believe we can come in with something that will surprise consumers.' Challenging the mainstay classic cocktails market is a brave move but it was something that Savage had already toyed with in the past due to his love of cognac. He said: 'Through experimentation I found that cognac was a very generous dance partner due to its complexity in the wood and aroma. We pushed it to see how far it could go, and it goes a long way. We're talking about the democratisation of cognac; to make it for everyone.'
Borda said: 'When you have one of the top mixologists in the world taking this approach with such passion and conviction, we feel that cognac, and Martell in particular, can take on any classic and bring something new to the on-premise.'
Savage is spinning several plates at once. He has six bar businesses on the go: two in London, two in Paris, one in Lyon, and one in Bordeaux, with an Art Deco-themed New York oyster bar bar opening shortly, and a further venue coming in Mexico.
The cognac collaboration is the only one he has with a drinks brand in any category, and he is not looking for others. Savage said: 'With Martell it's like we've been dating for four years and, this summer, we're finally moving in together. I am doing it because I want to. I have always been in love with cognac and this has led me to Martell.'
With his New York bar about to open, and Savage's genuine belief that cognac cocktails have a future—picking up from where they left off last century—Martell could just have found the right formula, and team, to turn the category around, starting with the U.S. before expanding to the rest of the world.
The Make It With Martell campaign will launch in key cities such as New York, Chicago, Atlanta, Washington, Houston, and Los Angeles. Borda said: 'It is a new, permanent platform that we strongly expect will drive sales and help us to modernize and create a different image for cognac that, in turn, will contribute to more dynamism at Martell. We will be adapting the cocktails to different seasons and the platform will be central to our future marketing and brand plans.'
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