Aficionados of the grape know the axiom; all cognac is brandy, but not all brandy is cognac. Distilled from grapes just like brandy, cognac can best be thought of as brandy's older, smoother, more sophisticated brother.

Similarly, all cognacs are not created equal, they vary in smoothness, flavor and consequently, price. So how do you know what you're getting?

That's easy, it's all ranked right there on the label...   

§                     VS Very Special, or ✯✯✯ (three stars) where the youngest brandy is stored at least two years in cask.

§                     VSOP Very Special (less commonly, but officially according to the BNIC, 'Superior') Old Pale, where the youngest brandy is stored at least four years in cask, but the average wood age is much older.

§                     XO Extra Old, where the youngest brandy is stored at least six, but average upwards of 20 years.

In addition can be mentioned:

§                     Napoleon Although the BNIC states this grade is equal to XO in terms of minimum age, it is generally marketed in-between VSOP and XO in the product range offered by the producers.

§                     Extra A minimum of 6 years of age, this grade is usually older than a Napoleon or an XO.

§                     Vieux Is another grade between the official grades of VSOP and XO.

§                     Vieille Réserve Is like the Hors d´Age a grade beyond XO.

§                     Hors d'âge The BNIC states that also this grade is equal to XO, but in practice the term is used by producers to market a high quality product beyond the official age scale. Hence the name "Hors d'age" (beyond age).

The farther you go up the scale, the more you can expect to pay.