French Cognac Exports to China A Slump in the Bottle

Title French Cognac Exports to China A Slump in the Bottle

The luxury spirits industry has taken a significant hit, with French cognac exports to China experiencing a notable decline. According to the BNIC association of cognac producers, sales to China dropped by 24% in value last year due to tariffs imposed by Beijing.

The story began when Brussels decided to impose tariffs on Chinese electric vehicles, citing unfair competition claims. In response, China set temporary tariffs on brandy imports, specifically targeting France's cognac makers. These tariffs have had a profound impact on the industry, with 98% of sales relying on exports.

The numbers are stark the number of bottles sold to China fell by 9.6% last year, representing a loss of 23.8% in value. Overall, cognac exports fell by 10.6% by value to around €3 billion ($3.1 billion). This decline is not limited to China; exports to the North American market also fell by 1.5% by value.

The reasons behind this slump are multifaceted and complex. The global geopolitical and economic context has created a challenging environment for the liquor sector as a whole. Trade tensions between Europe and the US, driven in part by President Trump's policies, have led to uncertainty and market volatility.

In conclusion, the French cognac industry is facing significant challenges in its largest export market. To recover from this slump, it will be essential to adapt to changing global circumstances and find new opportunities for growth.

Edward Lance Arellano Lorilla

CEO / Co-Founder

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