Nov 28, 2024, 4:10 PM
Nov 28, 2024, 4:10 PM

Hennessy workers protest against proposed cognac bottling shift amid tariff concerns

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Highlights
  • Protests erupted in Cognac, France, among Hennessy employees fearing job losses stemming from a decision to export cognac in bulk to China for bottling.
  • The protest was fueled by concerns over tariffs imposed by China, which could significantly affect the cognac industry in the region.
  • Workers demand a revision of regulations to protect local bottling, as the potential shift could have devastating effects on employment and the community.
Story

In southwestern France, hundreds of employees at Hennessy, a prominent cognac maker, participated in protests following plans to export cognac in bulk to China for bottling. This decision arose amidst increasing tensions surrounding tariffs imposed by China on European brandies, which represent 95% of China’s market for imported brandies. The protests highlighted the employees' fears over job security and the broader economic implications for the Cognac region, as a shift in bottling processes could lead to significant layoffs and the potential decline of local industry. Earlier this month, workers had already staged a strike against the proposals, demanding the protection of local bottling practices through the extension of France's controlled designation of origin (AOC). Such measures would ensure that all steps of cognac production remain within France, mirroring protections afforded to champagne production. Despite Hennessy management's announcement to suspend, rather than cancel, their plans, concerns linger about the possibility of relocating bottling operations to China, which many employees view as detrimental to their livelihoods and the future of the region. The backdrop of these events is an ongoing dispute between China and the European Union, exacerbated by recent tariffs that threaten the economic viability of the cognac industry. The situation has left many feeling unsure about their jobs and the future of cognac in France, raising alarms about a potential economic disaster if production lines were to move overseas.

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