The cognac industry, “burdened” by a Chinese anti-dumping investigation launched in response to a European initiative, has written to Brussels and Paris to demand funding for a start-up plan of between 35 and 50 million euros, we learned on Thursday. Beijing imposed major restrictions last year on importers of European brandies, mainly cognac, a move widely seen as a response to the European anti-dumping investigation targeting Chinese electric vehicles.
In July, large exporters such as Hennessy, Rémy Cointreau and Martell agreed to increase their prices to avoid an increase in customs duties. Although its shipments have fallen by 10% over the last year, the interprofessional is studying a “temporary recalibration” of the 90,000 hectares of vineyards with a temporary reduction of the surface from 7,000 to 10,000 hectares and, above all, a permanent uprooting of 3,500 hectares. And since it considers itself a victim of the trade war between Beijing and the EU, it demands a premium “in relation to the damage suffered”, according to Florent Morillon, president of the National Interprofessional Cognac Office (BNIC).
The sector “has lost a quarter of the Chinese market” in the last year and a half
“We have suffered the consequences of these decisions. We would like to receive aid because we are a collateral effect,” he stated, adding that the premium, taking into account the price of the vineyard in the region, cannot be less than 10,000 euros per hectare. “For us, the ideal would be between 10,000 and 15,000 euros. If we do the math, it is between 35 and 50 million euros” approximately to uproot 3,500 hectares, he continued, arguing that the sector “has lost a quarter of the Chinese market in the last 18 months,” and that the 50 million euros it demands correspond to only half a month. business in China before the restrictions.
This definitive uprooting would especially affect winegrowers close to retirement and those experiencing financial difficulties. In addition to the Chinese investigation and its consequences, cognac also suffers from the surcharges imposed by the Trump administration in the United States and the general decline in the consumption of wine and spirits. The sector, which makes almost all of its sales from exports, represented some 3 billion euros in exports in 2024, half of which went to the United States (36%) and China (20%), according to customs.
Source: BFM TV
