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LVMH halts controversial Hennessy China bottling plan

LVMH has suspended its controversial plan to ship Hennessy Cognac in bulk to China for bottling, a decision made in response to tariffs imposed by China on brandy imports from the EU. The proposal had sparked anger in the Cognac region, leading to protests and strikes at Hennessy’s facilities. The company stated it was halting the project while monitoring the evolving political and diplomatic situation. The tariffs, introduced by China in response to EU tariffs on Chinese electric vehicles, have already affected Cognac demand in China, one of its largest markets. LVMH’s suspension follows mounting industry pressure, with other major producers like Campari’s Courvoisier opting not to pursue similar plans. The EU has also initiated a WTO case against China's brandy tariffs.

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