The French Cognac sector is facing a severe crisis as exports fall and revenues decline sharply.
At Wine Paris on February 9, 2026, Florent Morillon, president of the Bureau National Interprofessionnel de Cognac (BNIC), presented a request for €40 million in European funds to aid in the uprooting of 3,500–4,000 hectares of affected vineyards.
Projected 2025 figures show exports declining to 141 million bottles, generating €2.24 billion in revenue—a 15% drop in volume and 25% in value compared to 2024. The losses bring the industry back to levels not seen since 2010.
Two major factors are driving this downturn: decreasing global consumption of wine and spirits and a Chinese anti-dumping investigation targeting French Cognac. This probe, initiated in response to EU tariffs on Chinese electric vehicles, has severely disrupted trade for the sector.
Morillon emphasized the wider implications of such geopolitical tensions for European agriculture, arguing that compensation is necessary when EU decisions inadvertently harm specific industries. “Cognac and Armagnac cannot be held hostage due to policies protecting other sectors,” he said.
President Macron recognized the €500 million loss caused by the Chinese investigation, with the government supporting the request to bring it to Brussels. The €40 million sought would fund permanent vine removal at €10,000 per hectare, separate from general wine-sector support or emergency distillation measures.
BNIC officials stressed the importance of targeted aid for areas permanently affected, distinguishing it from broader economic challenges. Successful compensation could serve as a model for protecting other agricultural sectors from international trade conflicts in the future.
Source: VinoVistara