Bloomberg reported on the crisis of the cognac industry in France

French cognac producers are experiencing a crisis, against which they have to uproot their vines due to falling demand. This was reported by Bloomberg on January 27.

"After several years of rapid growth in demand for cognac, the industry is experiencing a crisis: <...> last 2025, the volume of shipments fell to 141 million bottles, which is the lowest level since 2009," the article says.

According to the IWSR analytical company, cognac consumption will decrease by about 2% annually until 2029.

"We did not expect this severe crisis," admitted Thibaut Delrier, managing director of the small Hine brand.

In 2025, the company laid off more than a third of its employees, and now it is cutting down grapes on about 10% of its 129 hectares.

"Cognac producers are experiencing difficulties due to a sharp decline in demand for alcoholic beverages combined with an increase in the cost of living, which has led to a reduction in demand for luxury goods," writes Bloomberg.

Such difficulties are compounded by increased duties in the United States and China, which account for more than half of total cognac consumption. According to analysts, in France, more than 70 thousand jobs are associated with the production of this drink.

Red nose: alcohol consumption is falling in Russia

The decrease in demand is attributed to an increase in excise taxes and rising prices

The Financial Times (FT) newspaper reported on January 18, citing financial reports from five leading alcohol companies, that the world's largest alcohol producers are facing a historic decline in demand for whiskey, cognac and tequila. The situation has led to the accumulation of $22 billion worth of unsold beverages.

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