Winning with Strategy OPM 64

1. OPM 64 Winning with Strategy CAMUS GROUP Alexandra Camus

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Slide 1: Statement of Current Strategy
Aspirations (Why)
Icon of successful multi generational business. Preserve and strengthen a six-generation family heritage business
Create beauty, refinement, and sensory pleasure through exceptional Cognac craftsmanship
Become the “Hermès of Cognac” — a luxury Maison built on rarity and craftsmanship
Target 2–5% global Cognac volume share (vs. ~1% today) –market size €2.24bn
Financial ambition: 18% EBITDA, 12% EBIT
Advantage (What)
Family-owned since 1863 — one of the last large fully independent Cognac houses
Borderies terroir specialization delivering distinctive aromatic intensity
Rare, highly crafted Cognac expressions positioned in premium and ultra-premium segments
Strong craftsmanship and personalization capabilities
Entrepreneurial family-led brand identity
Scope (Where)
Geographic Scope
Global presence across 110 countries
Product Scope
Portfolio spanning VS, VSOP, XO, Extra, collectible and bespoke expressions
Price range from accessible premium to ultra-luxury ($45 – $100k+)
Customer Scope
Target: brown spirits consumers upgrading to Cognac
Cognac drinkers represent ~2% of total brown spirits consumers
Focus on premium, luxury, and connoisseur segments
Activities (How)
Patented, Aroma-driven Cognac production and proprietary techniques
Product differentiation through craftsmanship and design innovation
Direct engagement with high-net-worth communities (YPO, EO, Chaine, Babson, Harvard networks)
Family-led brand storytelling and experiential activation
Focus on humanizing the luxury brand through personal relationships
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Slide 2 шаблон: Industry and Market Dynamics
Threat of New Entry
Bargaining Power
of Customers
Bargaining Power
of Suppliers
Rivalry Among
Existing Competitors
Complements
Substitutes
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Slide 2: Industry and Market Dynamics
1. Threat of New Entry
Low for Cognac production, rising in premium spirits
• Strong structural barriers: AOC regulation, long aging (3–20 yrs), capital-intensive vineyards & cellars,
decades-long brand building
• Entry into Cognac limited, 95% dominated by houses like Hennessy, Rémy Martin, Martell
• Competition comes from new premium spirits categories (tequila, whisky,) rather than new Cognac
brands
2. Rivalry Among Existing Competitors
High and increasing
• Cognac exports –15.1% volume (2025) to 141m bottles
• Export value –25% to €2.24bn after decline in 2024
• China high-end spirits –28% value, major shock to the category
Drivers of rivalry:
• Shrinking market → price promotions increasing
• Competition for shelf space, back-bar presence, and duty-free visibility
• Large houses dominate marketing and trade terms
Customer Bargaining Power
Hight
High trade inventories give distributors & retailers strong pricing leverage
Travel retail & duty-free demanding subsidies and promotions
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Slide 2 : Industry and Market Dynamics
Bargaining Power of Suppliers
HIGHT – intro dependance, obligation driven
• Supply limited to Cognac AOC region
• Dependence on grape growers and distillers in the region
• BNIC production exceeded 1m hl-PA including stock (2022)
Current trend:
• Overproduction and inventory build-up after growth expectations
• Demand slowdown → buyer’s market for base wine and bulk eaux-de-vie
Implication:
Large houses hold negotiating power over growers in the short term
5. Threat of Substitutes
Very high
Key substitutes:
• Tequila / agave spirits
• Premium whisky
• Cannabis marihuana, recreational drugs
Market signals:
• Tequila now #1 spirit by value in US bars, surpassing whisky and vodka
• Global spirits volumes forecast –1.3% in 2025
• Lower abv drinks
6. Complements
Important growth drivers
Key complements:
• Luxury hospitality and nightlife
• Cocktail culture
• Premium gifting occasions
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Slide 3 шаблон : Creating Competitive Advantage & Delivering Value
Distinctive choice
Effect of choice on competitive advantage
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Slide 3 : Creating Competitive Advantage & Delivering Value
Distinctive Choice
Value Chain Area
Competitive Advantage
Independent family-owned Maison
Brand strategy / governance
Authentic luxury narrative and credibility
vs conglomerate-owned competitors
Borderies terroir specialization (largest
vineyard owner in the cru)
Sourcing / production
Rare supply and distinctive floral flavor
profile enabling premium single-estate
Cognacs
Patented aromatic distillation
techniques
Production innovation
Highly differentiated flavor complexity
and aroma intensity
Bespoke Cognac and Atelier creations
Product development
Ultra-premium exclusivity and strong
storytelling value. Brand exposure and
press
Direct-to-consumer platform (Camus.fr) Distribution
Higher margins and direct customer
data
Ultra-limited luxury releases and
boutique retail
Retail strategy
Halo effect supporting premium pricing.
Personalization
Operations
Higer buyers conversion,
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8. Part 3 шаблон : Creating Competitive Advantage & Delivering Value

Part 3 шаблон : Creating Competitive Advantage & Delivering Value
Choose a particular line of business to focus on. Identify the 7-10 most
important attributes that customers consider when choosing among
competitors in this line of business. Select the two most important competitors
in the line of business. Show how you rank versus the competition on the
attributes that customers consider
Purchase criteria
(for target customer segment)
Attribute 1
Attribute 2
Attribute 3
.
.
.
.
Low 1
2
3
8
4
5
High

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Part 3: Creating Competitive Advantage & Delivering Value
Camus differentiates on product craftsmanship, personalization, aromatic complexity
Most important for Distributors Brand Awareness and price
Attribute
Hennessy
Martell
Camus
Price / perceived
value
3.5
3
3
Brand prestige /
awareness
5
4
3
Taste profile /
aromatic
complexity
4
4
4.5
Craftsmanship /
authenticity
4
4
4.5
Packaging
aesthetics
4.5
4
4
Heritage / brand
story
4
4
4
Availability in
channels
5
4
3
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10. Part 4 шаблон : Sustaining Competitive Advantage

What are the 1 - 3 Key Market Realities (important trends) that your firm must
confront over the next 1 - 5 years? How will these external realities affect
your competitive advantage if you do not adjust your strategy?
Key Market Realities and Opportunities
Effect on your current competitive advantage
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Slide 4: Sustaining Competitive Advantage
Key Market Reality
Effect on Camus Competitive Advantage
Structural shift in alcohol consumption (younger Reduces traditional Cognac consumption
consumers drinking less, growth of low-ABV
occasions, requiring stronger experiential luxury
beverages and wellness trends)
positioning and brand storytelling
Geopolitical and regulatory instability (China
tariffs and anti-luxury consumption policies,
conflicts in Russia, Israel and the Middle East,
trade disruptions affecting the US market)
Increases demand volatility and geographic
concentration risk, forcing diversification of markets
and channels
Rising competition from other premium spirits
(tequila, agave spirits, premium whisky gaining
share globally)
Cognac must compete across categories, requiring
stronger differentiation through craftsmanship,
terroir, and rarity
Shift in luxury wealth allocation toward
alternative assets (art, diamonds, real estate,
crypto replacing collectible spirits in portfolios)
Reduces Cognac’s role as a collectible or
investment good, requiring stronger emotional,
experiential and cultural value creation
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Slide 5 шаблон : Key Actions Going Forward
What should you and the organization Start, Stop, Continue, or Do
Differently?
Start?
Stop?
Continue?
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Do Differently?

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Slide 5 : Key Actions Going Forward
Start
•Turn loyalty into repeat purchases by building programs focused on purchase frequency and
collector engagement
•Develop a credible cocktail and mixology strategy to reach new consumption occasions and
younger consumers
•Increase market penetration by expanding presence across more geographies and channels
Stop
•Relying on price increases as the primary growth lever
•Experiential events focused only on brand image rather than revenue generation
Continue
•Craftsmanship leadership and R&D in aromatic Cognac production
•Family-led purpose-driven brand positioning
•Sustainability initiatives, including reducing the company’s carbon footprint
Do Differently
•Shift from distributor-driven volume growth → consumer-driven luxury relationships
•Design products not only for technical perfection, but also for strong perceived value at the right
price point
•Rebalance geographic exposure to reduce concentration risk and grow global presence
Leadership priorities
•Diversify group income -> whisky, e-commerce, paod experiences, commodities to balance group performance
• Increase direct engagement with distributors and markets
•Delegate operational management to the executive team
•Build CRM and customer insight capabilities
•Advocate for category evolution and new consumption occasions
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Appendix 1
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Appendix 2
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Appendix 3
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Appendix 4
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