As the Cognac region navigates rising global challenges, producers are adapting to climate change and global tariffs while remaining committed to their traditional craft.
Cognac, a brandy renowned for its rich flavor and complex aromas, is facing unprecedented challenges.
The French region’s producers are struggling to cope with the effects of climate change, tariffs imposed by China and the US, and the loss of traditional markets.
Cognac is a type of brandy that originates from the Cognac region in France.
The production of cognac dates back to the 17th century, with the first written records of its existence appearing in 1620.
To be considered a true cognac, the spirit must meet strict regulations set by the Bureau National Interprofessionnel du Cognac (BNIC).
These regulations dictate that cognac can only be produced from three specific grape varieties: Ugni Blanc, Folle Blanche, and Colombard.
For ‘the greatest shock since the oil crisis’ , Alain Reboul, a 62-year-old winemaker in the Cognac region, has been affected.
His family’s winery, Earl du Bois Noble, is one of the smaller ones in the region, but he refuses to give up on traditional methods.
Despite the pressure from Chinese and US duties, Reboul plans to continue planting more vines, as his father did before him.
However, not all producers are as committed to their craft.
In response to the economic strain caused by declining exports to China, some have opted for more cost-effective alternatives.
For example, Alain Reboul’s colleague has replaced several hectares of vines with olive trees or truffle plantations.
However, Reboul remains steadfast in his approach.
China is the world's most populous country, with a population exceeding 1.4 billion people.
The country has experienced rapid economic growth since the introduction of market-oriented reforms in 1978.
Today, China is the world's second-largest economy, accounting for over 16% of global GDP.
The country has become a major manufacturing hub, with a significant presence in industries such as textiles, 'electronics' , and machinery.
China's Belt and Road Initiative aims to expand its economic influence through infrastructure development across Asia, Europe, and Africa.
Climate change is also affecting the region’s winemakers.
The warmer temperatures are causing grapes to ripen earlier, which increases the risk of harvest failures due to hail, frost, or disease.
For high-quality cognac, a certain level of acidity is essential, and climate change is altering the natural balance.
Climate change refers to significant long-term changes in the Earth's climate.
It is primarily caused by human activities, such as burning fossil fuels and deforestation, which release greenhouse gases into the atmosphere.
These gases trap heat, leading to rising global temperatures.
Climate change has severe consequences, including sea-level rise, extreme weather events, and altered ecosystems.
According to NASA, 2020 was one of the hottest years on record, with temperatures 1.2°C above pre-industrial levels.
The 'Intergovernmental Panel on Climate Change (IPCC) warns that global warming must be limited to 1.5°C to avoid catastrophic consequences.'
Reboul sells his entire yield to Hennessy, one of the oldest and best-known cognac producers in the region.
He relies on relatives and seasonal workers to manage his estate.
Cassandre Allary, who runs her family business, Tonnellerie Allary, with her brother, also faces similar challenges.
Allary explained that making a barrel requires knowledge and craft, as the wood needs to be toasted and fitted with heads and hoops before being polished and deburred.
The company produces oak barrels and casks for both wine and spirits.
Despite diversifying its portfolio in the 1990s, Allary’s business is currently running at full capacity, but orders are dwindling.
The Cognac region owes its global success largely to trade.
Several famous cognac houses were founded by immigrants, including Bache-Gabrielsen, Hennessy, and Martell.
These brands dominate the market, with the latter two, along with Courvoisier and Remy Martin, accounting for around 90% of sales.
To tap into new markets, some producers are experimenting with innovative products, such as organic cognac in recycled bottles or cocktails, liqueurs, and aperitifs.
Jean-Philippe Bergier, the cellar master, blender, and ‘nose‘ of Bache-Gabrielsen, believes that there is still a strong demand for high-quality cognac, particularly among younger generations.
Bergier has seen many trends come and go in his 35-year career with the company.
Recently, he bottled a small batch of organic cognac to test the market.
He also wants to explore new segments, such as the growing interest in quality and sustainability.
As the Cognac region navigates these challenges, its producers are adapting to changing circumstances while remaining committed to their craft.
The future of this iconic brandy is uncertain, but one thing is clear: its resilience and tradition will continue to shape its success.
