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Hennessy Explores Bottling in China to Avoid EU Brandy Tariffs, Causing Strikes


Photo by Jason Stewart

Summary


  • Hennessy is exploring a plan to bottle cognac in China to avoid high tariffs imposed on European brandy imports.

  • The trial involves shipping bulk cognac to China for bottling locally, which could affect 2025 sales if successful.

  • The move has sparked labor strikes at Hennessy’s bottling facility in southwestern France.


 

Hennessy, a cognac producer under French luxury conglomerate LVMH, has announced plans to trial bottling operations in China to counter steep tariffs imposed by Beijing. These anti-dumping measures, implemented in October, raised duties on bottled brandy imports from the European Union to over 30%. China, which accounted for $1.7 billion in cognac exports last year, remains the second-largest and most profitable market for the industry.

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