Luxury Goods SpecialSinking spirits

To say that there is a crisis in the Cognac world is to understate the case. The word scarcely hints at the sorry spectacle that is unfolding. This is more than just a tale of falling sales and mounting stocks, though the extent of the industry’s financial woes are real enough. More than anything, the crisis looks set to alter dramatically the fabric of the Deux Charentes, the two dZpartements north of Bordeaux where Cognac is produced.

Cognac is more than just the economic heart of the Deux Charentes; it effectively is the Deux Charentes – and has been for several hundred years. It is by far the region’s largest business, directly employing 22,000 people and indirectly employing a further 33,000 out of a total population of 880,000. As significant, Cognac accounts for 25 per cent of all sales in the region and a whopping 70 per cent of its exports.