Dating back to 1850s in New Orleans, a man called Sewell E. Taylor begins importing Cognac to New Orleans. The brand being Sazerac de Forge et Fils. Around the same time a bar opened in New Orleans called the Sazerac House, where they begin selling the Sazerac cocktail. This cocktail containz the Sazerac Cognac and absinthe. There is a possibility that the drink also used bitters produced from a local pharmacy owned by Antoine Peychaud, and these still remain a vital ingredient in the drink. There is reference to Peychaud making his own version of the drink served from a coquitier (egg cup).
The first mention of the Sazerac is in the early 1900s in William Boothby’s The World’s Drinks and How to Mix Them. Allegedly Thomas Handy the owner of the Sazerac House gave him the recipe. However, he exchanges whisky (he states it needs to be good whisky) instead of Cognac. This was due to the outbreak of a bug in French that killed off the Wine and Cognac industry in the early 1900s.