Hennessy, the world’s best selling cognac, has proven that with a sustainable business approach an international luxury brand can establish itself firmly in the hearts and minds of African consumers.
Hennessy is one of a few internationally renowned luxury brands to enjoy major success in Africa and deep-rooted loyalty from their consumers. Despite starting out in a market where scotch and brandy were the traditional tipple of choice - and cognac as a liquor category was non-existent – Hennessy is currently the number one selling cognac in Africa, and a leader in the premium spirits category with consistent double digit growth over the last 10 years.
Says Pascal Asin, MD of Africa and Middle East at Moët Hennessy, who has been supervising the Hennessy brand forward in Africa for more than a decade: "It’s more than just a business model – it’s about transmitting the legacy of an iconic brand in such a way that the local market adopts and welcomes it as their own."
The company’s history, and the devout interest in preserving and extending the process of that history, is one of the key factors of the brand’s longevity. With the Hennessy family being involved in the business for well over eight generations, it is a Maison that prides itself on its lineage, its time-tested processes and its ability to adapt to ever-changing times.
This is not unlike the approach that Hennessy’s founder took in 1765. Richard Hennessy, an Irish officer who was serving in the army of King Louis XV, moved to Cognac in France with one desire: to create the world’s most superior cognac.
Asin adds that Richard Hennessy’s philosophy and practice of adapting and adopting to the environment still rings true for the brand today: "Richard was Irish by birth but, when he moved to France, he took on the authentic ways of Cognac to create the world’s most superior cognac. It’s this mind-set that has made Hennessy a success around the world and, more recently, in Africa."
An age-old philosophy that surges forward
The success that a luxury brand like Hennessy has seen in Africa may make sense on paper, especially if one considers that Africa is home to approximately $165 000 Dollar millionaires and countries like South Africa, Nigeria, Kenya and Ghana have seen significantly positive economic growth in the last five to 10 years.
But Asin believes that the favourable economic climate only accounts for a small part of Hennessy’s success in Africa: "While the African consumer may have more disposable income, they are still very specific on what and how they spend it – Africa is still very much a growing market. To be a successful international luxury brand one needs to adopt a business model that is specifically adapted to the consumer’s needs, wants and concerns," he explains.
Asin remarks that the luxury consumer in Africa is hungry for experiences that resonate with them on a very personal level, and explains how Hennessy helps create and capture these moments: "The typical African consumer is the young aspirational man who, at the end of his day or week, wants to enjoy Hennessy with his friends and colleagues to celebrate their journey to success. It’s customary for them to meet in their favourite nightclub or pub where they will drink Hennessy from a balloon glass – a tradition that is often viewed as archaic in other parts of the world. In Africa, however, the balloon glass is what differentiates the Hennessy drinker from the rest of the crowd; it adds to the experience of the relentless African spirit of conquest," explains Asin.
Africa: adapting and adopting
When Hennessy first explored the African market in the early 1990s, scotch and traditional brandy were the most popular spirits and cognac as a liquor category was non-existent.
While first-mover advantage in Africa might seem like a marketer’s dream, the loyal African consumer can be a big business obstacle for premium brands that may have the competitive edge elsewhere in the world.
"When we entered the South African market we were not only faced with the commercial dilemma of having an almost non-existent market but, also, a market where consumers weren’t even willing to waver on the label of spirits they enjoyed, let alone the type of spirits," explains Asin.
It was during this time that Hennessy also noticed a number of international luxury brands that were merely moving into Africa with the intention to get a piece of the growing market share.
"Today many of them are long gone because the market failed them. Or rather, they failed the market by coming in as - and remaining as - business ‘outsiders’. The brands were never truly geared for the African market. We understood the only possible way to be successful in Africa was to adopt and adapt to the traditions of the continent – much like Richard Hennessy did when he moved to Cognac, and much like the brand did as it moved into America, Europe and Asia throughout its 250 year history," explains Asin.
Hennessy’s focus is always on building relationship and partnering with the loca market to understand their consumer intrinsically.
This then means that Hennessy works almost solely with suppliers, retailers, distributors and agencies that specialise in the African market – an approach which few other luxury brands have fully understood. In addition, the African spirit of partnership has resulted in the major growth for the brand and made Hennessy one of the favoured spirits in the premium liquor sector on the continent.
Yesteryear's blends for tomorrow's stars
Hennessy’s ethos of truly integrating into the African market has made them particularly successful in South Africa and Nigeria, and more recently in Ghana, Kenya and Tanzania.
Remarkably the demand for luxury goods is not necessarily by the affluent older generation, as often seen in Europe or America. "While many African consumers are the well-established high net worth individuals, the majority of Hennessy drinkers are young up-and-coming entrepreneurs," explains Asin.
This doesn’t come as a surprise, considering that 65% of the African population is under 35 and that approximately 10 million Africans enter the workforce for the first time every year.
It’s this youthful face of the luxury African consumer that lead to Hennessy’s Never Stop. Never Settle. marketing campaign. The powerful commercial speaks to the heart of the African consumer who is on a journey of success: the man whose ambition and inner drive will steer him to realise his full potential, and go beyond.
This celebration of the relentless African spirit is undoubtedly one of the factors to Hennessy’s success in Africa: "Succeeding in Africa doesn’t happen overnight – the African consumer intrinsically knows it and we understand it. It’s the African consumers and our local partners who are continuously pushing the limits that are driving us forward to continue our legacy for another 250 years."
As progressive as Hennessy was in the past, they aim to continue that legacy in the future. Aligning with members of the communities in the countries in which they operate has been key to success. Starting from partnering with US hip-hop legend Nas in 2012, Hennessy was one of the first major alcohol brands to align with a rap artist, speaking to the brand’s understanding of being for the people and being a brand that the people could mould into their own personal preference.
In Africa specifically, Hennessy has partnered with the home-grown talents of rappers D’Banj, 2face Idibia, Wizkid, Naeto C and M.I, all of whom are starting to gain global acknowledgement and which has made the brand even more appealing to the local market.
Hennessy plans to continue its adventurous take on cognac in the next 250 years, but not before celebrating the last 250 historical years in style and flair as only Richard Hennessy would.
The Hennessy H250 Tour is a Hervé Mikaeloff curated touring exhibition created to highlight the artists who are consistently pushing the boundaries of culture forward. Complete with live exhibitions and shows spanning the globe, the tour will touch five continents in legendary locations throughout 2015. Circa Gallery in Johannesburg was selected to represent the African leg of the tour and, in addition, will also feature the work of South African artist Dineo Bopape alongside the internationally renowned artists like Anton Corbijn and Charles Sandison. The exhibition will be showcased from Wednesday, 19 to Friday, 28 August 2015.
A special H250 Collectors Blend was also created specifically for the brand’s 250th anniversary, and with only 250 barrels of the blend available worldwide it truly makes for a once-in-a-lifetime collectors’ item.
Watch the Hennessy 250 years of history video here.
For more information, visit the Hennessy website. Alternatively, connect with Hennessy on Facebook.