In a recent turn of events, Cognac workers are on the brink of resuming strikes against LVMH’s Hennessy brand after the conglomerate hinted at the possibility of bottling the renowned liquor in China. The move comes in response to the tariffs imposed by China on European brandy, a decision that has sparked unrest among workers in the Cognac region.
The Force Ouvriere union, representing Hennessy workers, revealed that around 500 employees had already staged strikes earlier this week due to concerns over potential job losses. Reports emerged that Hennessy is contemplating shipping Cognac for bottling in China to circumvent the recently imposed duties. This decision has not only raised fears about job security but also sparked doubts about product quality and the risk of counterfeiting.
While Hennessy assures that essential production processes like harvesting, distillation, and blending will remain in Cognac, the idea of shipping liquor for bottling overseas has raised significant alarm. Workers are now pushing for the introduction of a local bottling requirement in Cognac's protected geographical designation of origin to safeguard local jobs and uphold quality standards.
Amidst the brewing tension, other local producers may join in the strikes, signaling a potential industry-wide movement against the relocation of bottling operations to China. Concerns also loom about possible future tariffs imposed by the US under the Trump administration, adding another layer of uncertainty for the embattled Cognac workers.
French President Emmanuel Macron has pledged to address the tariff issue during Prime Minister Michel Barnier's upcoming visit to China, signaling a proactive stance to mitigate the crisis. As the Cognac industry faces a "looming disaster" without intervention, workers are gearing up for a fierce battle to protect their livelihoods and preserve the heritage of the region.
As LVMH’s wines and spirits division grapples with challenging market conditions, the outcome of this clash between workers, producers, and the conglomerate could shape the future landscape of the prestigious Cognac industry.