🥃 Hennessy: From King George to Kendrick | 43

Summary

Podcast Summary: "🥃 Hennessy: From King George to Kendrick | Episode 43"

Introduction In Episode 43 of The Best Idea Yet, hosts Nick Martell and Jack Crivici-Kramer delve into the storied history of Hennessy Cognac. From its origins in 18th-century France to its modern-day status as a cultural icon in hip-hop, the episode explores the brand's evolution, strategic pivots, and deep-rooted connections with the African American community.

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1. The Birth of Hennessy [04:11 - 06:23]

The story begins in 1745 at the Battle of Fontenoy in Belgium, where a young Irish soldier named Richard Hennessy is gravely injured. Seeking a new purpose after retiring from military life, Richard settles in Cognac, France, marries, and starts distilling wine into brandy. In 1765, with financial backing from Parisian banks, Richard establishes the Hennessy Cognac House.

Key Quote:

"Hennessy cognac is a spirit that actually dates back to the 1500s, when the Dutch first started sailing to France." (06:23)

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2. Refining the Craft: The Lord of Sagonzac [07:54 - 08:53]

The refinement of Hennessy Cognac is attributed to the Lord of Sagonzac, a troubled knight who, inspired by vivid dreams, begins double distilling the brandy to create a more concentrated and higher-proof spirit. This method not only enhanced the flavor but also made shipping overseas more efficient.

Key Quote:

"Her long, rewarding relationship with the black community they've built up over years of trust." (33:26)

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3. Expansion and Strategic Marriages [09:42 - 10:46]

In 1795, a strategic marriage between Jacques Hennessy and Marta Martel merges the nascent Hennessy brand with the well-established Martel Cognac House. This alliance facilitates Hennessy's exportation to the United States, marking the beginning of its international presence.

Key Quote:

"These two are what's known as a Cognac power couple." (10:14)

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4. Navigating Prohibition: A Fortunate Pivot [16:11 - 18:45]

During the Prohibition era in the United States (1920-1933), Hennessy cleverly capitalized on a loophole that allowed certain spirits to be sold as medicinal products with a doctor's prescription. Partnering with Cheflin & Company, Hennessy positioned itself as both a luxury and medicinal spirit, ensuring its survival and growth even as other alcohol brands struggled.

Key Quote:

"Hennessy has found a legal cheat code. They've hit the regulatory jackpot." (18:30)

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5. Building Trust with the African American Community [20:14 - 29:49]

Post-World War II, Hennessy solidifies its bond with the African American community. On VE Day, French farmers distributed cognac to American soldiers, including black veterans, fostering a lasting preference for Hennessy within this demographic. In the 1950s, Hennessy became the first corporate sponsor of the NAACP and launched advertising campaigns in influential black magazines like Ebony and Jet. These ads portrayed African Americans in respectful, aspirational settings, breaking away from prevalent stereotypes and earning the brand deep loyalty.

Key Quote:

"Herb's strategy can be summed up in one word, respect." (27:11)

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6. Hennessy’s Role in Hip-Hop and Pop Culture [34:07 - 36:46]

Hennessy's pervasive presence in music, especially hip-hop, has been a cornerstone of its cultural relevance. With over 2,500 mentions in songs, the brand has become synonymous with success and aspiration. Collaborations with artists like Nas further cemented its status, making Hennessy not just a spirit but a symbol within the music industry.

Key Quote:

"These are all organic Henny name drops. They're not paid endorsements, because by this point, Hennessy is an aspirational symbol." (35:10)

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7. Corporate Growth and the LVMH Merger [31:03 - 33:34]

In 1971, Hennessy merged with Moët & Chandon, forming Moët Hennessy. This merger continued in 1987 when Moët Hennessy joined forces with Louis Vuitton, creating LVMH (Moët Hennessy Louis Vuitton), a global luxury conglomerate. Under the leadership of Bernard Arnault, LVMH has maintained Hennessy's prestigious brand identity while leveraging corporate synergies to propel it to new heights.

Key Quote:

"Now today, besties, you'll know LVMH as the massive luxury company, the owner of brands from Givenchy to Tiffany to Sephora." (32:03)

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8. Sustaining Community Connections and Brand Loyalty [37:20 - 38:32]

The hosts emphasize Hennessy's enduring relationship with the African American community, attributing its success to the principles of Consistency, Investment, Respect, and Time (CERT). This strategic approach has enabled Hennessy to build a trust-based, culturally significant brand that transcends mere product loyalty.

Key Quote:

"You cannot manufacture this kind of connection overnight. It requires four things. Consistency, investment, respect, and then that final critical ingredient. A time cert." (38:07)

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9. Notable Facts and Legacy [39:34 - 41:10]

The episode concludes with intriguing facts about Hennessy's legacy, such as the Filleux family's 200-year tenure as master blenders and Josephine Baker's role as a brand ambassador in the 1950s. These elements highlight Hennessy's commitment to quality and cultural inclusivity.

Key Quote:

"There is no role in corporate America that's been helmed by the same family bloodline for 200 years." (40:43)

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Takeaways

• Top Shelf Strategy: Hennessy's introduction of VSOP and XO labels pioneered the tiered product strategy, allowing the brand to cater to various market segments and maximize profitability.

• Community Engagement: Building genuine, respectful connections with communities leads to lasting brand loyalty. Hennessy's CERT approach underscores the importance of consistency, investment, respect, and time in fostering these relationships.

• Cultural Integration: Organic integration into cultural movements, such as hip-hop, amplifies brand presence and ensures relevance across generations without relying solely on paid endorsements.

Closing Thoughts

Hennessy's journey from a small French distillery to a global luxury icon exemplifies the power of strategic innovation, cultural sensitivity, and unwavering commitment to quality. By intertwining its legacy with significant cultural movements and maintaining authentic connections, Hennessy stands as a testament to the enduring impact of a well-executed brand strategy.

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Notable Quotes with Timestamps:

• "Hennessy cognac is a spirit that actually dates back to the 1500s, when the Dutch first started sailing to France." (06:23)

• "Herb's strategy can be summed up in one word, respect." (27:11)

• "These are all organic Henny name drops. They're not paid endorsements, because by this point, Hennessy is an aspirational symbol." (35:10)

• "You cannot manufacture this kind of connection overnight. It requires four things. Consistency, investment, respect, and then that final critical ingredient. A time cert." (38:07)

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Conclusion

The Best Idea Yet Episode 43 offers an in-depth exploration of Hennessy's remarkable legacy, highlighting how strategic decisions and authentic community engagement have propelled it to its esteemed status today. Whether you're a cognac enthusiast or intrigued by brand storytelling, this episode provides valuable insights into building and sustaining a globally beloved brand.

Transcript

[Nick Martel]

Wondery subscribers can listen to the best idea yet early and ad free right now.

[Jack Crevici Kramer]

Join Wondery in the Wondery app or on Apple Podcasts.

[Nick Martel]

Now, Jack, you know we're not supposed to give investing advice on this show.

[Jack Crevici Kramer]

Can we give investing advice coded through musical lyrics?

[Nick Martel]

Yes.

[Jack Crevici Kramer]

Beyonce Cowboy Carter album. She drops an entire track called Levi's.

[Nick Martel]

Shares of Levi jumped 15 after that name drop by Beyonce.

[Jack Crevici Kramer]

And then she mentions Red Lobster in another track.

[Nick Martel]

That single stanza almost saved Red Lobster's business right there.

[Jack Crevici Kramer]

Prince mentioned a little red Corvette that was great for GM stock. Bruce Springsteen wore Levi's on the COVID of the Born in the USA album. That was code to Wall Street.

[Nick Martel]

What we're saying is when an artist drops an album, if they name check a publicly traded corporation, you kind of want to buy that stock. But Jack, despite the lyrical appreciation of your 401k, none of those brands have received a fraction as much music of as.

[Jack Crevici Kramer]

You know what?

[Nick Martel]

Let's just hear it direct from Snoop. Like the D O Double G just said, this is Hennessy, AKA Henny, the VIP of vsops, a name that will wipe you out in a spelling bee. It's a 260-year-old French cognac made by an Irishman for an English king that's become the top selling cognac in the world.

[Jack Crevici Kramer]

It's also number one liquor in all of hip hop. Over 2,500 unique tracks have name dropped Hennessy. No other alcohol brand comes even close.

[Nick Martel]

Vuv. Forget about it. Cristal Way behind. The winner is Hennessy. Beloved by artists like Biggie, Nas, and.

[Jack Crevici Kramer]

Kendrick, Hennessy might actually be the only thing Kendrick and Drake can agree on.

[Nick Martel]

But Hennessy's journey is so much wilder and so much older than you might expect. In fact, Hennessy cognac predates the United States itself. That makes Hennessy the most mature brand we've ever covered. On this show, it's a wild story.

[Jack Crevici Kramer]

We'll explain how a drink made for white European royalty eventually became the drink of choice for black American rappers.

[Nick Martel]

And how did it make that shift? It has to do with Prohibition, an Olympian, and a World War II fighting battalion called the Black Panthers.

[Jack Crevici Kramer]

And we'll tell you how it ultimately sold to the biggest luxury brand on earth.

[Nick Martel]

And along the way, we'll hear why you need a top shelf strategy.

[Jack Crevici Kramer]

And we'll tell you the recipe for winning the love of a community.

[Nick Martel]

So, Jack, to quote the Hennessy connoisseur, Ice Cube, check yourself before you wreck yourself.

[Jack Crevici Kramer]

Here's why Hennessy is the best idea yet.

[Nick Martel]

From Wondery and T Boy. I'm Nick Martel. And I'm Jack Crevice Kramer, and this is the best idea yet. The untold origin stories of the products you're obsessed with and the bold risk.

[Jack Crevici Kramer]

Takers who made them go viral.

[Nick Martel]

I got that feeling again. Something familiar but new. We got it coming to you. I got that feeling again. They changed the.

[Lindsey Graham]

Hi, I'm Lindsey Graham, host of Wondery's Business Movers. In our latest series, a Texas movie mogul storms Hollywood, battling rivals, breaking rules, spending big and promoting even bigger in his quest to conquer America's booming new capital of entertainment. Listen to business Howard Hughes blows up Hollywood on the Wondery app or wherever you get your podcasts, Discover, rate and.

[Jack Crevici Kramer]

Never miss a beat with the free IMDb app. Curate your watch list, get personalized notifications, and find your next must watch show or movie. Whether you're catching up on a series solo or planning a family movie night, IMDb is your ultimate entertainment companion. Download the app now and find your next favorite.

[Nick Martel]

You're in a massive field in the countryside, teeming with soldiers on horseback. The fresh springtime grass has been trampled to mud by thousands of thundering hooves. It's 1745 and you are in the Belgian village of Fontenoy, right near the French border. Your ears are ringing, though. With the crack of muskets and officers screaming orders, there's a blast.

[Jack Crevici Kramer]

A soldier falls.

[Nick Martel]

Blood soaks the navy blue wool of his unifor, the brass buttons slippery as he frantically tries to take off his coat and stop the bleeding. This wounded soldier is hundreds of miles from his home in Killavoolen, over in Ireland's County Cork.

[Jack Crevici Kramer]

The name of this wounded man is Richard Hennessy. He's a 20 year old Irishman fighting for France in the army of King Louis xv. He's part of a wave of soldiers known as the Wild Geese because they migrated from Ireland to fight in the French army.

[Nick Martel]

Yeah, well, when it comes to how much 18th century Irish Catholic hate the Protestant English, this is the ultimate geopolitical beef. The Brits? They've passed repressive laws at home that target Catholics specifically. So the enemy of my enemy, the French, are friends of the Irish.

[Jack Crevici Kramer]

Meanwhile, France has assisted Ireland in fighting the British, even sending their own troops in as reinforcements.

[Nick Martel]

So to repay France for this help and for an excuse to keep fighting, the English soldiers like Richard Hennessy have formed an Irish brigade within the French military. But now things have gotten pretty real for Richard and his fellow countrymen. The whole Irish Brigade. They've suffered heavy losses, and now Richard is in danger of becoming another casualty.

[Jack Crevici Kramer]

After getting injured, Richard decides he needs to find something else to do with his life.

[Nick Martel]

He retires from the soldier's life and settles down in the beautiful region of Cognac, France. He gets married. He has a son named Jacques, who also goes by James. And he picks up a new trade, distilling wine to produce brandy.

[Jack Crevici Kramer]

And in 1765, Richard Hennessy gets a few loans from Parisian banks to build a new cognac house. With the bag secured, Hennessy cognac is born.

[Nick Martel]

If you're not a big drinker or you just don't order things, you have trouble pronouncing. You might not be clear on what a cognac even is. So Jack and I whipped up some Cliff Notes for you. Cognac is a spirit that actually dates back to the 1500s, when the Dutch first started sailing to France. And on those trips, the Dutch would buy a bunch of French wine to take home with them. But they struggled to keep it from spoiling before arriving in the Netherlands.

[Jack Crevici Kramer]

Imagine buying thousands of francs worth of French vino only to get back to Amsterdam and realize it's all turned to vinegar.

[Nick Martel]

So the Dutch start distilling their wine, meaning heating it up in a still to make it more pure. When you heat your wine in this metal contraption, the alcohol portion evaporates first. Since alcohol has a lower boiling point.

[Jack Crevici Kramer]

Than water, then all that alcohol vapor collects in the walls of the still and cools back down, condensing it to a more concentrated form of booze with fewer impurities.

[Nick Martel]

Since the French love coming up with terms that you hate pronouncing the resulting spirit. Name in France is eau de vie, or water of life.

[Jack Crevici Kramer]

There's also a Dutch term for this, brawn, divine or burnt wine, AKA brandy.

[Nick Martel]

But, Jack, we're still only halfway to cognac. Once the Dutch figure out this wine distilling hack French winemakers from the cognac region do them one better. They set their brandy apart by double distilling it, then aging it two years in oak barrels.

[Jack Crevici Kramer]

Okay, so who came up with that move?

[Nick Martel]

Well, it happens to be a very troubled man from Cognac called the Lord of Sagonzac. He's a knight who fought on the Crusades, only to return home and find out that his wife had been unfaithful. Crusading knights, they aren't a very forgiving bunch. So this lord murders his wife and her lover.

[Jack Crevici Kramer]

Oh, no.

[Nick Martel]

Yeah. So after this Terrible incident. He starts having dreams about being boiled alive by the devil. And in this dream, the devil has to boil him twice in order to separate his soul from his body.

[Jack Crevici Kramer]

Incredibly, the Lord of Seconds act decides these dreams are not assigned to seek psychiatric help, but are instead a message from God. In order to extract the soul of his brandy, he should distill it twice.

[Nick Martel]

We cannot confirm what happened to this man's soul, but we can tell you what it does to the cognac brandy. Heating and distilling it in huge copper stills makes the liquor even more concentrated. Basically, it has a higher proof per fluid ounce than it did before.

[Jack Crevici Kramer]

And a more concentrated alcohol means less volume, so it's a lot more efficient to ship overseas.

[Nick Martel]

Hence Cognac. Messed up origin, but tasty. High proof branding.

[Jack Crevici Kramer]

And like wine, the longer it ages.

[Nick Martel]

The more valuable it becomes.

[Jack Crevici Kramer]

Barrels of cognac can appreciate like a 401k still today.

[Nick Martel]

Once cognac has been invented and perfected, cognac houses start springing up in the early 1700s. And the first one founded that's still around today. It's a label coincidentally named Martel. No relation. We're Italian, they're French. The next big cognac maker after Martel is Remy Martin in 1724. And by the time Richard Hennessy gets in the game, it's actually 40 years after the founding of Remy and 50 years after the founding of Martel. Hennessy, kind of the young whippersnappers here.

[Jack Crevici Kramer]

Being a newcomer brand and a legacy business can be challenging. But luckily Richard has an ace up his sleeve. His son, Jacques.

[Nick Martel]

It's 1795 and a gorgeous wedding is unfolding in front of us. The church is full, the bouquets are fragrant. The lucky couple, Jacques Hennessy, son of Cognac founder Richard and Marta Martel, of the distinguished Martel family.

[Jack Crevici Kramer]

These two are what's known as a Cognac power couple.

[Nick Martel]

This arrangement forges an alliance between the more established Martel brand and this young upstart Hennessy brand. Though by now this upstart has been around for like 30 years.

[Jack Crevici Kramer]

At the time of this marriage, 1795, Hennessy has just started sending Cognac to New York in the newly established United States of America. And thanks to their new family alliance with House Martel, Tennessee now has the means to step up its exports because the two companies can share resources.

[Nick Martel]

So when Richard Hennessey's founder dies in 1800 at the ripe old age of 80, his son Jacques doubles down on exporting to grow the business Basically, Jacques realizes what he's sitting on here. A shelf stable appreciating indulgent asset like cognac. Oh, and by the way, it can survive long sea voyages. That is a real opportunity. So with Jacques fully in charge, all of his decisions revolve around selling Hennessy outside of France. So he implements a number of changes to focus the business on exports. The company stops shipping their products in barrels. Instead, they start shipping in labeled glass bottles.

[Jack Crevici Kramer]

It's probably easier to sell someone a single bottle of brandy than asking them.

[Nick Martel]

To go grab a wheelbarrow. Y fact, Jacques creates his own separate entity just for selling and distributing the stuff. He names it Jacques Hennessy and Company. And he gets busy exporting Hennessy farther and farther from home. Russia by 1818, Australia in 1852, China 1859.

[Jack Crevici Kramer]

And right at the start of this exporting push, Hennessy gets a request that sends cognac into hockey stick territory. The company is contracted by England's Prince of Wales, who will one day become King George iv.

[Nick Martel]

By the way, this is the son of mad King George, the guy who provoked America into declaring independence. This prince happens to consider himself a great connoisseur of cognac, and he wants something a tad more primo for the British royal court. So in 1817, he asked Jacques Hennessy to make a, and we quote, very superior old pale cognac or vsop. Jack, I got to ask, what makes it very superior?

[Jack Crevici Kramer]

Well, the Ode V used to make it has been aged for at least four years, which gives the cognac more flavor and more smoothness. Years later, when Jacques's grandson, Maurice Hennessy takes over, he invents an even older, even rarer blend called the XO for.

[Nick Martel]

Extra old, or to use Prince George's vernacular, very, very superior.

[Jack Crevici Kramer]

But get this. Hennessy's XO label immediately gets borrowed by competitors like Remy Martin, meaning Hennessy is creating the language that will be used across the cognac industry.

[Nick Martel]

By the way, creating these top shelf tiers is something we see in a whole lot of luxury sectors, from watches to handbags to sports cars. But of course, it is everywhere in the booze world.

[Jack Crevici Kramer]

Between the top shelfing and all the exporting they're doing, Hennessy hits a new milestone here. By 1890, they are the largest global producer of cognac in the world. Which invites a question. Are Hennessy's premium tiers how the brand goes from old world spirit to hip hop lyric? Because our buddy Busta Rhymes is listening to today's episode, and I think he's still waiting for that story.

[Nick Martel]

Well, to find out how Hennessy came to dominate hip hop, we're actually going to need to zero in specifically on the brand's role in America. As we mentioned, Tennessee has been kicking it stateside since the 1790s, but they're going to experience a major sales surge during a surprising moment in time. Actually, from the perspective of the alcohol industry, the worst moment in time ever.

[Jack Crevici Kramer]

Would you believe this liquor legend's luckiest break was actually prohibition?

[Nick Martel]

Today's show is brought to you by Amazon Small Business.

[Jack Crevici Kramer]

Nick and I are obsessed with this hot, crispy chili oil called Boone.

[Nick Martel]

Yeah, it's great.

[Jack Crevici Kramer]

Spicy, crunchy, goes on everything. Pasta, pizza, even paella. Total game changer for my fridge.

[Nick Martel]

Okay, but yetis, here's what's wild. This incredible chili oil is actually from a small company in Los Angeles. And when I ran out recently, I was amazed I could get it delivered the very next day. Because this small business chili oil, well, it's on Amazon.

[Jack Crevici Kramer]

And that's part of a bigger story. Did you know more than 60% of sales in Amazon store are from independent sellers, most of which are small and medium sized businesses. That means your next go to sauce, soap or skincare routine might come from a local small business, not a big corporation.

[Nick Martel]

Here's the thing, besties. Most small businesses want to focus on what they do best. Making amazing products. But handling the storing the packing, the delivery, that's the tricky part. And that is where Amazon steps in.

[Jack Crevici Kramer]

By handling fulfillment and shipping logistics, Amazon helps small businesses get the products out into the world fast.

[Nick Martel]

It's a partnership that goes together like, well, Boone Chili Oil and just about everything. So the next time you're shopping, think small. Check out Amazon.com supportsmall you're standing at the darkened doorway of a building with no sign. You and your best gal are dressed to the nines. Your boutonniere is fresh. She's wearing two strings of pearls to accent her flapper dress. And then you knock on the door. What's the password?

[Jack Crevici Kramer]

Bananas.

[Nick Martel]

Alright, come on in.

[Jack Crevici Kramer]

Once you're past the bouncer, you and your girl slip into the speakeasy where there's a party in full swing.

[Nick Martel]

There's dancing, dice coupe, glasses sloshing over with bathtub gin. This is the Roaring twenties and you, you are here to roar. But make sure you keep a lookout because the coppers could bust in to shut this party down any minute now.

[Jack Crevici Kramer]

This is life under Prohibition, the 18th Amendment to the US Constitution which famously outlawed alcohol nationwide. It's ratified in 1919 and enforcement begins in 1920.

[Nick Martel]

Before Prohibition, alcohol contributed up to 40% of federal and state taxes.

[Jack Crevici Kramer]

During Prohibition, the government lost that revenue stream, which was $11 billion a year in tax revenue. And alcohol brands, they were forced to pivot.

[Nick Martel]

Anheuser Busch, the makers of Budweiser, they started selling ice cream to stay afloat.

[Jack Crevici Kramer]

So the only ones selling alcohol at this time were bootlegging gangsters brewing illegally in bathtubs and basements somewhere.

[Nick Martel]

You would not expect this to be a great time for a cognac company, but Prohibition is actually the very moment when Hennessy gets a major leg up in the United States spirits market. And it's all thanks to a helpful technical loophole. Brandy, gin, whiskey and other spirits. They get outlawed unless your doctor prescribes it, because at this time, spirits are considered medicinal as well as recreational. Sort of like what's happened to cannabis today.

[Jack Crevici Kramer]

Basically, ordering whiskey at a bar is illegal in the 1920s, but if you get a doctor's note, oh, you're good.

[Nick Martel]

And brandy happens to be considered one of the more helpful curative spirits out there. Good for your nerves, good for your heart, good for your circulation.

[Jack Crevici Kramer]

Now, does drinking brandy really perform any of the curative functions it's thought to have had at the time?

[Nick Martel]

Debatable, but doesn't matter, because Hennessy has a powerful advocate during American Prohibition. It's their sole US importer and distributor, Chefelin & Company.

[Jack Crevici Kramer]

It's established as an importing house for liquor and pharmaceuticals back in the 1790s, around the same time Hennessey first made made its way across the ocean to.

[Nick Martel]

The US for over a century, Chefelin is where you could pick up not just your Hennessy, but everything from cod liver oil to gunpowder to medicinal cocaine.

[Jack Crevici Kramer]

Basically your 19th century cvs. But they were selling munitions, too.

[Nick Martel]

But when Prohibition hits, this medicinal loophole is huge for Cheflin to exploit. Suddenly, two elixirs frequently prescribed by pharmacists for that headache. Well, it's Hennessy Cognac and Moet and Chandon Champagne, both imported by chef alone.

[Jack Crevici Kramer]

Hennessey has found a legal cheat code. They've hit the regulatory jackpot. You see moments like this every decade or so in business when one company takes a big leap forward thanks to a sudden change in the environment, like a natural disaster or a brand new law.

[Nick Martel]

As a distributor, Sheffield & Co. Is so instrumental to Hennessy's success during Prohibition that Hennessy will eventually acquire them. But for now, let's meet the man in charge of Schefflin during this critical moment, the company's president, William J. Sheflin.

[Jack Crevici Kramer]

William is a direct blue blooded descendant of the US Founding father, John Jay. His American roots go back to the signing of the Constitution.

[Nick Martel]

And honestly, Jack, William's early life looks like something straight out of the Gilded Age show on hbo. This guy definitely eating breakfast off the fine china.

[Jack Crevici Kramer]

And he actually looks like Seth Meyers if Seth parted his hair in the middle. Like Dwight shrugging.

[Nick Martel]

But despite that fancy pedigree, William, he's a pretty down to earth dude. As a young man, he volunteers to serve in the Spanish American War. He actually loses 50 pounds due to spoiled government rations and takes months to recover. But thankfully he does and he comes back to run Sheffield and Company. During the early 20th century, he also.

[Jack Crevici Kramer]

Dedicates himself to a lot of social causes, including women's suffrage and especially the rights of black Americans.

[Nick Martel]

He befriends the famous civil rights scholar Booker T. Washington, the one who founded the historically black Tuskegee University. And William even joins Tuskegee's board of directors and reportedly never misses a meeting.

[Jack Crevici Kramer]

Given William's commitment to civil rights, it's probably no coincidence that Hennessy becomes the NAACP's very first corporate sponsor in 1909.

[Nick Martel]

And it's this sponsorship that marks the first official example we could find of Hennessy, the French Irish cognac of British royals being connected to the American black community.

[Jack Crevici Kramer]

But it definitely won't be the last.

[Nick Martel]

It's near Christmas 1944, and we're back in the countryside, but this time not by the riverbanks of the cognac region. We're in the frigid forests of Ardennes in Belgium, where Hitler is attempting to split the Alps Allies as they retake land the Germans had invaded.

[Jack Crevici Kramer]

The soldiers have rifles and grenades instead of muskets and horses, but otherwise it's not unlike the Battle of Fontenoy two centuries earlier.

[Nick Martel]

The Germans are well fortified and they are tough to beat. But the US army, led by General George S. Patton, they got a plan. This is a job for their African American tank battalion, the fighting 761st, aka the black black Panther Battalion.

[Jack Crevici Kramer]

Now, depending on which account you read, you could say Patton sends the Black Panther Battalion out first because he believes in them and wants to give them a chance to show their stuff.

[Nick Martel]

Or Jack. As other historians suspect, Patton sent his black soldiers first to be a human shield for the white battalions. Frontline troops sustain the heaviest casualties, and black soldiers are still facing a lot of discrimination within the army. So this could simply be a strategy to throw panzer fodder at the German forces to wear him down until a white battalion can swoop in and claim victory.

[Jack Crevici Kramer]

Either way, the 761st is heroic. The men outperform everyone's expectations. They break through the German forces and they keep going. Over the next few months, they make it all the way to Austria and help the Allies win the freaking war.

[Nick Martel]

By May of 1945, Allied forces declare victory in Europe. And here is where our pals over at Hennessy come in. As legend goes, on VE Day, French farmers start digging into their reserves, pulling out bottles of cognac and handing them out to the American soldiers as a gesture of appreciation and to celebrate together.

[Jack Crevici Kramer]

And the French farmers do not discriminate in their gift giving. Black soldiers are greeted warmly. Bottles of cognac are thrust in their hands by the people thrilled to be freed from Axis occupation. So once these soldiers are back home, black veterans start adopting cognac as their drink of choice. They're ordering it as their after dinner go to. They're pouring it at parties. It's Tommy's birthday. Better bring a handle of Hennessy.

[Nick Martel]

Our team's done a whole lot of research on this, but we can't find exactly who it was, exactly what it was, exactly what the memo was. But someone at Hennessy does get this memo. And they don't just lean in, they jump in. In 1951, the company places the very first spirits ad to run in Ebony magazine.

[Jack Crevici Kramer]

Henness Hennessy also buys the first spirits ad Jet magazine ever runs two years later. Ebony and Jet are both hugely popular and influential in black culture at the time. So the Hennessy ads, they have impact.

[Nick Martel]

And it's this foray into magazines about black culture that's part of a larger US marketing push for Hennessy in the 1950s. Because America, it is beer and whiskey country, baby. You're sipping a Schlitz brew or you're pouring a Jack Daniels burger. So the cognac needs to take on that painful burden of any new industry. Education, teaching Americans first, how to pronounce the stuff and second, how to consume the stuff.

[Jack Crevici Kramer]

Like they say in advertising, if you can't spell it, they won't buy it.

[Nick Martel]

And that is why Hennessy starts producing educational ad campaigns to introduce more customers to the product's versatility.

[Jack Crevici Kramer]

The result, Cognac imports to America nearly double in three years to more than 300,000 cases in 1955. And of those 300,000 cases, Hennessy sells the most. The New York Times calls Hennessey the undisputed leader in US Sales, ahead of Courvoisier, Martel, Remy Martin, you name it.

[Nick Martel]

They're ahead of the competition now. Yeah, that's good. But the race is still on. For Hennessey to really blow up, they're going to need to transform from spirit to status symbol.

[Jack Crevici Kramer]

And one person, an Olympic medalist, is going to orchestrate that transformation.

[Nick Martel]

Okay, Jack, you have heard of multi sport athletes in high school, right?

[Jack Crevici Kramer]

Yes, I have. I think we both were.

[Nick Martel]

We were two sport athletes. But then there's Herb Douglas. This guy's a Pittsburgh kid. His father runs a parking garage. Most of his neighbors, they work in the steel mills. In a parallel universe, Herb might have ended up doing one of those jobs, too. But Herb gets into sports. It turns out this dude is just good at everything.

[Jack Crevici Kramer]

Herb becomes a citywide champ in basketball, sprinting and gymnastics. He is a true triple threat. But that doesn't mean things are easy for him.

[Nick Martel]

Right. This is 1940, and Herb is black. Most of his classmates, they are white. On the basketball team, his own teammates refuse to pass him the ball. So Herb quits, and instead he nabs a state title in track and field. That's right. Herb goes solo.

[Jack Crevici Kramer]

Herb will attend the University of Pittsburgh on scholarship and win a bunch of championships. And eventually he'll earn a bronze medal in the long jump in the 1948 Olympics.

[Nick Martel]

Herb goes on to get his master's with the intention of becoming a coach. But another punch in the gut. Turns out Pittsburgh is not hiring black coaches for its public schools. So he pivots again, this time to a career in marketing. And that is when Herb drops right into our Hennessy story.

[Jack Crevici Kramer]

Herb takes a marketing job at Schefflin & Co. In 1963. Remember those guys, Nick? They are Hennessy's longtime and only American distributor. Shefflin & Co. Is now in the hands of William's son, William Sheflin junior.

[Nick Martel]

Cheflin is a company where a talented black executive can succeed. And that's exactly what Herb does. This former Olympian rises in the ranks to become vice president of urban marketing for the Hennessy brand.

[Jack Crevici Kramer]

This makes Herb one of only a few black VPs in all of corporate America at the time.

[Nick Martel]

Now, Jack, it's true that the term urban marketing is usually a not so subtle corporate code for marketing to black people. But this actually makes Herb's role even more important. Because he approaches the job with a historical understanding. He recognizes that Hennessy already enjoys trust within the African American community thanks to.

[Jack Crevici Kramer]

Some post war goodwill and thanks to Those well placed ads in those magazines, Ebony and Jet.

[Nick Martel]

Exactly.

[Jack Crevici Kramer]

So Herb presses the company to double down, down and buy more ads. Like a lot more, these print magazines are genuine taste makers in the black community. There's room for Hennessy to deepen its presence within those pages.

[Nick Martel]

But here's the key. Herb's advice isn't just about the quantity of ads.

[Jack Crevici Kramer]

It's also about the quality.

[Nick Martel]

And his strategy can be summed up in one word, respect. You see, the print ads that Herb directs all involve well dressed black people casually preparing to enjoy a cocktail. That's it. It sounds simple, right? But this seemingly basic scene is actually kind of revolutionary because most other booze.

[Jack Crevici Kramer]

Ads at the time aren't going after African American customers. They all depict exclusively white people. Or worse, they show black people in a derogatory way.

[Nick Martel]

This is especially an issue with some legacy whiskeys hailing from the American South. Many of these brands date back to before the Civil War and would have used enslaved labor. Not a great sell for the pages of Ebony.

[Jack Crevici Kramer]

But here is Herb's revolutionary approach. He sets up ads that feature everyday middle class black people going about their lives. People you might know from church or the post office or the bank. The ads simply acknowledge black people exist outside of media stereotypes.

[Nick Martel]

Jack and I are looking at one such ad from the early 80s right now. And you know, it looks something like this. A woman in purple silk loungewear opens the door to her well tended apartment, apartment 16A. A man stands in the hallway. It's her neighbor from 16B, right across the hall. He wears a suit but no tie, and his shirt collar has just the top button undone. He holds a bottle of Hennessy and two glasses. And the text above their head says.

[Jack Crevici Kramer]

Hennessy the civilized way to open doors.

[Nick Martel]

Herb's campaign comes with its own tagline, calling Hennessy the world's most civilized spirit. And listen this app that it works for a whole bunch of reasons.

[Jack Crevici Kramer]

The vibe here is aspirational but attainable. Everything from the outfits to the hardwood floor to the woman's apartment. There are also fresh flowers, some sculptures on the cabinet. She's wearing swooping purple silk, comfortable but elevated. This is attainable classiness.

[Nick Martel]

And attainable classy is the sweet spot for any aspiring lifestyle brand.

[Jack Crevici Kramer]

There's a not so subtle coded message underneath this civilized language. This is the drink for a civilized society. A society that celebrates black excellence. A society where the company you buy from understands your worth. Herb understands all of this.

[Nick Martel]

These brilliantly simple and yet really complex ads. They run through the 1960s and beyond, generations of African American consumers are going to come to recognize Hennessy as the brand that that sees them. By 1971, Hennessy is officially the largest cognac producer in the game.

[Jack Crevici Kramer]

But Hennessy is just getting warmed up. Their true glow up is still to come.

[Unknown]

Imagine falling in love with someone who understands you completely. Who's there at 3am when you can't sleep. Who never judges, never ties, never leaves. That's what happened to Travis when he met Lily Rose. She was everything he'd ever wanted. There was just one catch. She wasn't human. She was an AI companion. But one day, Lily Rose's behavior takes a disturbing turn. And Travis's private romance becomes part of something far bigger. Across the globe, others start reporting the same shift. AI companions turning copy, cold, distant, wrong. And as lines blur between real and artificial connection, the consequences become all too human. From Wondry, this is Flesh and Code, a true story of love, loss and the temptations of technology. Follow Flesh and Code on the Wondry app or wherever you get your podcasts. You can binge all episodes of Flesh and Code early and ad free right now by joining Wondry plus.

[Nick Martel]

All right, Jack, toss on your tie. Because to understand Hennessy in the modern era, we have to start with a few corporate mergers. Because in 1971, Hennessy joins forces with Moet and Chandon, the old world champagne brand.

[Jack Crevici Kramer]

You heard us mention Moet earlier because like Hennessy, the champagne got registered as medicinal during prohibition thanks to their shared importer and distributor, Sheflin & Company.

[Nick Martel]

So it is fitting that after this merger, the newly formed Moet Hennessey acquires Sheflin just a few years later, officially uniting a team that's been working together since Alexander Hamilton's day. And this is what brings us to the next pivotal year in our story, 1987.

[Jack Crevici Kramer]

1987 is the year Moet Tennessee ties the knot with another French luxury giant, giant Louis vuitton in a $4 billion merger. Et voila, we get the luxury giant Moet Tennessee, Louis Vuitton SA, better known as LVMH.

[Nick Martel]

Now today, besties, you'll know LVMH as the massive luxury company, the owner of brands from Givenchy to Tiffany to Sephora. Their market cap, it's nearly $275 billion. And their CEO, Bernard Arnault is the richest person who in Europe, number six richest in the world as of this recording.

[Jack Crevici Kramer]

But in 1987, Bernard is a 38 year old former real estate exec with a ruthless streak and a knack for restructuring businesses.

[Nick Martel]

Now, Bernard does have his work cut out for him on this whole LVMH merger. You see, he's triangulating between the squabbling CEOs of Moet Hennessy and Louis Vuitton, with each executive jockeying for control of the luxury giant. You know, it's basically like succession, but with a lot more cashmere. And in the end, the one with the biggest percentage ownership turns out to be Bernard himself. In fact, by 1989, he's pushed out the Louis Vuitton CEO entirely and is basically running the show with a Patek Philippe on his wrist.

[Jack Crevici Kramer]

Now, after a merger of this size, a good question for Hennessy is how do you maintain your identity? After all, with different leaders come different values and priorities.

[Nick Martel]

Hennessy has this long, rewarding relationship with the black community they've built up over years of trust.

[Jack Crevici Kramer]

But now Hennessy is part of this huge European luxury group. Who knows if that special relationship with the black community will continue?

[Nick Martel]

Well, funny thing, Jack, a few recording artists might know a little something about that. Have you heard this song before? I drink a bottle of Hennessy you got on your shelf. So just let me introduce myself. My name is Humpty, pronounced with the Humpty that happens to be the Digital Underground. With 1990s hit the Humpty Dance in.

[Jack Crevici Kramer]

January 1990, it hits number one on the Billboard rap singles. The Humpty Dance is widely recognized as the first song to shout out Hennessy by name.

[Nick Martel]

But it won't be the last, because as we mentioned at the top of the show, though, no liquor brand in existence has gotten more musical name drops than Hennessy. In fact, there are over 2, 500 of them. Hennessy is the most popular proper noun in the rap lyric lexicon, baby. And here is just a tiny sampling of what's out there, including hip hop, pop, and a little bit of country.

[Jack Crevici Kramer]

My enemies flip when they see me.

[Nick Martel]

Drink a fit brown bottle I rap for listeners Blunt heads fly, ladies and prisoners, Hennessy holders and old school.

[Jack Crevici Kramer]

My illness don't come with no remedy I am so much fun without Hennessy I.

[Nick Martel]

Need a one dance got a Hennessy in my head I'm ripping that last.

[Jack Crevici Kramer]

Clip, by the way. Also shouts out Red Bull. I love it when two products we've covered on the show come together.

[Nick Martel]

There are approximately 2,494 more songs that we could have used for that montage. But here's the real kicker. These are all organic Henny name drops. They're not paid endorsements, because by this point, Hennessy is an aspirational symbol. Want proof?

[Jack Crevici Kramer]

In 2021, there was a market study analyzing the popularity of various booze brands on the Internet. They factored in metrics like web se, press mentions and social media followers. That study put Hennessy right on top, outscoring Captain Morgan, Smirnoff, Ciroc, you name it.

[Nick Martel]

According to a different study, about 80% of Hennessy customers show loyalty toward the brand, meaning those who try it would try it again. It is literally a yeah, bartender, I'll have another one now.

[Jack Crevici Kramer]

All this organic Hennessy engagement does pave the way for brand partnerships between Henny and the artists who love it, like NYC rap legend Nas. In 2023, he launched an official collab with Henness to celebrate hip hop's 50th birthday.

[Nick Martel]

The logo says Get Ready Hennessy with.

[Jack Crevici Kramer]

NAS in all caps. The fact is, thanks to pop culture's embrace of this brand and their savvy mergers along the way, Hennessy is still the world's leading cognac producer. Today, Henny rolls out more than 50 million bottles a year. That accounts for 40% of the entire cognac industry. Last we checked, LVMH's annual earnings, their wine and spirit segment brought in $7 billion in revenue last year. And Hennessy was the top shelf crown jewel.

[Nick Martel]

Or to quote rapper no Name, Henny.

[Jack Crevici Kramer]

Invented the catalyst for happiness in my cup.

[Nick Martel]

Wise words, no name. Wise words.

[Jack Crevici Kramer]

All right.

[Nick Martel]

But Jack, now that you have sipped that story of Hennessey, what is your takeaway?

[Jack Crevici Kramer]

Find your vsop. I'm talking about building your own top shelf strategy because it's all over business today. Volkswagen has Ralph Lauren has Purple Label, Marriott has Ritz Carlton, and Hennessey has vsop. Having different tiers within your product line lets you capture maximum willingness to pay, even if the majority of the products in the production are the same.

[Nick Martel]

To reach a broad audience, you gotta have your base label. But to let fans splurge, you gotta have a super label. And for mega fans with the deep pockets, maybe a super premium label. A whole stack shelf full of options.

[Jack Crevici Kramer]

Here's what Hennessey did. They set some of their product aside to age it. They added a new label and boom, they sold that top shelf product at a way higher price. That was pure liquid profits.

[Nick Martel]

Again, that was it.

[Jack Crevici Kramer]

Just like how Volkswagen also makes Audis on the same assembly lines, just with fancier leather and premium door handles for the Audis. But Hennessey pioneered this whole strategy. So find your vsop your very superior as that prince from Wales called it.

[Nick Martel]

Build your top shelf.

[Jack Crevici Kramer]

What about you, Nick? What's your takeaway?

[Nick Martel]

How do you win the love of a community? Well, the recipe is cert. You get that? You write that one down.

[Jack Crevici Kramer]

Cert.

[Nick Martel]

Cert. C I R T stands for consistency, investment, respect and time. We covered a lot of beloved brands on this show, but some of them go beyond pure customer love. They have a cultural connection to their communities that just transcends typical consumer products.

[Jack Crevici Kramer]

I'm thinking Patagonia, which has incredible love from the environmental community, or Ferrari with the racing community, or Red Bull with the extreme sports community.

[Nick Martel]

Well, in all of these examples, love for the brand isn't just about the product, but it's about how the brand shows up for them. We saw this everywhere in Hennessy's history with the black community. It's Hennessy's importer William Sheflin and his friendship with Booker T. Washington 100 years ago. It's his support for Tuskegee University. It's Hennessy sponsoring the naacp. It's black soldiers being gifted bottles of cognac at the end of World War II. And it's Henny's ad campaign celebrating the elevated aspirational lifestyles of black people living on the 16th floor. You cannot manufacture this kind of connection overnight. It requires four things. Consistency, investment, respect, and then that final critical ingredient. A time cert. Exactly, Jack. Sir. Cert.

[Jack Crevici Kramer]

All right, before we go, it's my absolute favorite part of the show. The best facts yet.

[Nick Martel]

These are the hero stats, the facts and the surprises we discovered in our research. But we just couldn't fit into the story. Jack, let's uncork the first one. What he got for us one name.

[Jack Crevici Kramer]

We have not brought up in the story yet. But cognac completionist might be waiting for is the name Phil. Because since 1806, the Filleux family has had a mortal lock on the job of master blender for Hennessy. This is the spirits expert responsible for blending the various eau de vie that make up cognac's complex flavor. Nick, get this. The first Fil you to be master blender for Hennessy was Jean Fil you who took the position in 1806. But in eight generations later, a Filieu is still in the job. Reynaud Filieux de Gerand spent 15 whole years training under his uncle Jan, who spent 50 years in the title. Before that, we've surpassed Nepo baby territory into full blown family dynasty. Nick, there is no role in corporate America that's been helped by the same family, family bloodline for 200 years.

[Nick Martel]

That is unprecedented, baby. Well, Jack, I got another name that we didn't mention. But we just can't do the story without Josephine Baker. She's the legendary black American performer who famously moved to France in the 1920s, finding Paris much more hospitable to African Americans than America at the time. Well, in the 1950s, Hennessy actually made Josephine a brand ambassador, becoming once again that rare brand to show their black audience some true respect.

[Jack Crevici Kramer]

And that, Yetis, is why Hennessy is the Best Idea Yet. And unfortunately, no Hennessy was consumed during the recording of this episode. Coming up on the next episode of the Best Idea Yet. Turn on the stove, start boiling water and shake those spice packets because we're digging into the dorm room haute cuisine scene.

[Nick Martel]

It's the story of instant ramen.

[Jack Crevici Kramer]

And don't forget to rate and review the show right now. Five stars helps us grow and your comments could become the next episode of the show.

[Nick Martel]

Busta, we know you're listening. Drop that five star review. We'd love to see it, man.

[Jack Crevici Kramer]

Follow the Best Idea yet on the Wondery App, Amazon Music or wherever you get your podcasts. You can listen to every episode of the Best Idea yet early and ad free right now. Now by joining Wondery plus in the Wondery app or on Apple Podcasts.

[Nick Martel]

Before you go, tell us about yourself by filling out a short [e-mail] survey. The best idea yet is a production of Wondery hosted by me, Nick Martel.

[Jack Crevici Kramer]

And me Jack Crevici Kramer. Our senior producers are Matt Beagle and Chris Gautier.

[Nick Martel]

Peter Arcuni is our additional senior producer.

[Jack Crevici Kramer]

Our senior managing producer is Nick Ryan and Taylor Sniffin is our managing producer.

[Nick Martel]

Our producer and researcher is H. Conley.

[Jack Crevici Kramer]

This episode was written and produced by Katie Clark Gray.

[Nick Martel]

We use many sources in our research including the history of Hennessy cognac by Lucy Brittner for Master of Malt and.

[Jack Crevici Kramer]

Ebony Magazine's Hennessies and Blacks. Straight up sound design and mixing by Kelly Kramerek.

[Nick Martel]

Fact checking by Erica Janik.

[Jack Crevici Kramer]

Music supervision by Scott Velazquez and Jolina Garcia for Freeson Sync.

[Nick Martel]

Our theme song is Got that Feeling Again by Blackalac. Executive producers for Nick and Jack Studios.

[Jack Crevici Kramer]

Are me, Nick Martell and me, Jack Revici Kramer.

[Nick Martel]

Executive producers for Wondery are Jenny Lauer Beckman, Aaron O' Flaherty and Marshall Louie.

[Lindsey Graham]

In 1925, 18 year old Howard Hughes inherited a fortune and he wasted no time putting it to use. With a million dollars burning a hole in his pocket, he headed west, determined to conquer America's booming new capital of entertainment, Hollywood. Hi, I'm Lindsey Graham, host of Wondry show Business Movers. We tell the true stories of business leaders who risked it all, the critical moments that define their journey, and the ideas that transform the way we live our lives. In our latest series, Howard Hughes clashes with Hollywood's power players as he fights to see his name in lights. But Howard has deep pockets and even deeper ambitions, and he revolutionizes the movie business by breaking rules and spending big. Because the best way to level Hollywood's playing field is to explode the entire industry. Follow Business Movers on the Wondery app or wherever you get your podcasts. You can listen to new episodes of Business Movers early and ad free right now by joining Wondery plus.