France's cognac producers weather climate change, tariffs – DW – 05/19/2025

DW

19-05-2025

Cognac is considered by many to be the best brandy in the world. But those who make it are under pressure from Chinese and US duties, as well as global warming — all of which are forcing them to rethink their approach.
Vines for as far as the eye can see. Some 24 hectares (59 acres) belong to Alain Reboul, a 62-year-old, seventh-generation winemaker. His Earl du Bois Noble winery is one of the smaller ones in the Cognac region of France and is located around 100 kilometers (about 62 miles) north of the city of Bordeaux.
Wine production is strictly regulated in the region, which is the biggest white wine region in France and home to at least 4,350 winemakers. Only grapes from the six areas, or crus, of the Cognac geographical indication can be used to make the brandy that is produced in the region and bears the same name.
The largest market for cognac is the United States, whose President Donald Trump recently threatened to impose 200% tariffs on European spirits. The second-largest market is China, where President Xi Jinping already imposed temporary anti-dumping measures on imports of brandy in the fall of 2024 in retaliation to the European Union's approval of duties on electric vehicles made in China. The alcohol can no longer be sold in Chinese duty-free stores.
Alain Reboul said there have always been crises, and that he will weather this one as well Image: M. Jordanova-Duda/DW
According to the French trade association, the Bureau National Interprofessionnel du Cognac (BNIC), exports to China have decreased by half, resulting in a loss of over €50 million (about $56 million) per month. The BNIC has appealed to the French government not to forget the approximately 70,000 jobs that depend directly and indirectly on cognac.
'Plant, plant, plant!'
Along with a local winegrowers' union, the BNIC has recommended to winemakers that they get rid of some of their vines in order to save costs for machinery, fertilizers and pesticides. That's out of the question for Reboul, who has spent a large part of his career buying more land and planting more vines.
"You have to plant them for 30 years, at least," said the tall, weather-beaten man. "For generations!"
Shorter-term thinking has not paid off for his family in the past, Reboul said, adding that his father switched to red wine during the oil crisis and that it wasn't worth it.
Just a few years ago, he said, the motto was "Plant, plant, plant!" The thirst for cognac seemed unquenchable. Despite the COVID-19 pandemic and the war in Ukraine, almost 213 million bottles were sold in 2022, a record year, according to the BNIC.
Cognac is considered one of the best brandies in the world by connoisseurs Image: Dreamstime/IMAGO
Reboul said the current slump has been the greatest shock since the oil crisis. He has colleagues who have uprooted several hectares of vines, replacing them with olive trees or truffle plantations, but he said he will not do the same.
"My philosophy won't change," he said, adding that there have always been crises.
Apart from Chinese and US duties, the Cognac region has also been affected by the loss of the important Russian market in the wake of the full-scale invasion of Ukraine. Climate change is also putting a strain on winemakers because grapes are becoming sweeter; for good cognac, they need a certain acidity. The grapes are also ripening earlier, increasing the risk of a harvest failure because of hail, frost or disease.
Family-run businesses carry on tradition
Reboul sells his entire yield to Hennessy, one of the oldest and best-known cognac producers. He manages his estate with the help of relatives and seasonal workers, and said he loves his job.
Cassandre Allary runs her family business, the Tonnellerie Allary, with her brother. They have 26 employees and produce oak barrels and casks of all sizes for both wine and spirits. There are some 50 barrelmakers located between the cities of Cognac and Bordeaux, and their craft is recognized as part of the country's winemaking traditions.
It takes a lot of knowledge and craft to make a barrel, Allary said. The wood, which is always oak, is first dried outdoors for many months so that the wind and rain bring out the tannins. Then the barrels are toasted and fitted with heads and hoops before being polished and deburred, or smoothed out.
"The temperature [for toasting the wood] depends on the aromas that we want to tease out of the wood," she said. "We do this according to the client's wishes."
Cassandre Allary runs her barrelmaking company with her brother Image: M. Jordanova-Duda/DW
Allary explained that if the wood is toasted at low heat, it releases coconut aromas, whereas a medium heat reveals notes of vanilla, mocha or cocoa.
Regarding the current business climate, she said the small company, which used to supply only cognac distillers but diversified its portfolio in the 1990s, is running at full capacity this year, but orders are dwindling.
Cognac houses founded by immigrants
Almost all the 20,000 inhabitants in Cognac produce or market wine, cognac, barrels, glasses, bottles or labels. The brandy has enriched the region and particularly the town, which gives it its name.
Cognac owes its global success largely to trade. The fact that it is distilled made it possible to export it to other countries. Several famous cognac houses, many of which now belong to larger corporations, were founded by immigrants, including Bache-Gabrielsen, Hennessy and Martell. The the latter two, along with Courvoisier and Remy Martin, dominate about 90% of the market.
Tapping into new markets
A gallery of portraits hangs above drawers full of historic bottle labels in the lobby of the Maison Bache-Gabrielsen, which was founded in 1905 and is still owned by the family. The company produces around 1 million bottles a year, which is not much compared to more famous brands, but a lot considering there are only 23 employees.
The wine is supplied by winegrowers like Reboul and is then turned into a high-proof "eau de vie" through double distillation. The brandy must then mature for at least two years in oak barrels so that it can absorb aromas from the wood. The different wines are then blended to produce the amber-colored end product.
Jean-Philippe Bergier has been making cognac for 35 years Image: M. Jordanova-Duda/DW
Jean-Philippe Bergier is the cellar master, blender and "nose" of Bache-Gabrielsen. He has worked there for 35 years, blending up to 15 distillates from all of the region's areas. He said certain grape varieties, which bring more acidity and once were only added in small proportions to a blend, are now in demand because of climate change.
He said he has seen a number of trends come and go. Recently, Bache-Gabrielsen bottled a small batch of organic cognac in recycled bottles to test a new market segment. The company also wants to tap into new markets by producing cocktails, liqueurs and aperitifs.
He said there is a lot of interest from young people about how cognac is made. Though they drink less alcohol than older generations, they are more interested in quality. And that's why he believes firmly in the future of cognac.
This article was originally written in German.