Hennessy Eyes China for Bottling Amid Worker Strike

Hennessy, owned by LVMH, is considering bottling cognac in China to counteract Chinese tariffs. This move triggered a strike by 500 workers in France. The plan involves testing sample shipments and possibly relocating bottling operations, while competitors like Remy Cointreau explore alternative cost-saving strategies.

Hennessy, the renowned cognac brand owned by the French luxury giant LVMH, announced plans to potentially bottle its product in China. This development has sparked a mass walkout by workers at its French plant, reflecting the challenges posed by new Chinese antidumping tariffs.

China stands as the industry's second-largest export market, following the U.S., contributing significantly to the cognac trade. However, economic downturns in these regions, coupled with a poor harvest, have resulted in a sharp decline in sales. The recent duties imposed by Beijing further strain the situation, affecting companies like Remy Cointreau and Pernod Ricard.

The proposed plan has ignited fears among workers regarding job security, as shipping cognac to China for local bottling could bypass tariffs but at a cost to the French workforce. The industry lobby is urging government intervention, aiming to safeguard the presence of this iconic French brand on the global stage.

(With inputs from agencies.)