CHINESE ANTI-DUMPING INQUIRY IS HURTING COGNAC EXPORT TO CHINA

Anti-Dumping issues between China and France is becoming alarming.

Anti-Dumping inquiry means China is investigating if French brandies are sold for less than their costs to the point that it is hurting the sales of domestic Chinese brandies

According to a BNIC press release (BNIC, 8th April 2024) representatives of the Federation of French Exporters of Wines and Spirits (FEVS), the National Interprofessional Office of Armagnac (BNIA), the National Interprofessional Office of Cognac (BNIC) and the five main Cognac Houses present in China (Hennessy, Remy Martin, Martell, Courvoisier and Camus) met today Mr. Wang Wentao, Minister of Commerce of the People’s Republic of China, on the occasion of his official visit to France. This exchange, which lasted more than two hours, made it possible to mention the anti-dumping investigation launched by the Chinese authorities on January 5 on European wine brandies, in a context of trade and diplomatic tensions between the European Union and China.

It has been a difficult past 12 months for Cognac, with volume sales dropping by 16% in the first six months of 2023, and many established brands seeing sales plummet. Euromonitor International anticipated marginal growth for the category by the end of 2023, but hopes for a stronger market in 2024 have been dashed by recent moves by the Chinese government says the Spirit Journal (Feb. 2024).

French government and Cognac authorities are trying to negotiate a solution to resolve this incident and get back to business without tensions using the past 60 years experience and collaboration between the 2 countries says Vitisphere (2024).

Could there be political motivations? It reminds me when President Trump increased the US import tax for cognac while negotiating a deal between Airbus versus Boeing. I cannot help to smell a ‘car battery deal’ in this new situation. Hopefully, I am wrong!

Sources: BNIC, The Spirit Business, Vitisphere