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Cognac Producers Pay to Uproot Vines Amid Demand Slump
28 Jan
Summary
- Producers will be paid to remove vines by the root.
- Demand for high-end liquor has dropped significantly.
- Industry faces lower sales due to tariffs and trade tensions.
French cognac producers are implementing a significant measure to counteract a sharp decline in demand for their high-end spirit. The industry association plans to pay its members to uproot their vines, a strategy aimed at realigning production volumes with current market needs. This initiative comes as cognac sales have fallen by over a third in the past three years.
Trade tensions, particularly tariffs imposed by the United States and China, alongside an anti-dumping probe in China, have severely impacted the market. The UGVC estimates that overall cognac sales have dropped to approximately 140 million bottles in 2025. To finance these payments, the association will secure a 10-year loan.
While recent trade agreements with Mercosur and India may offer future market opportunities, establishing sustained demand will take time. India is identified as a region with significant potential for the cognac industry's growth.
