By tassilo hummel
Koniac, France – The property of the Christophe Felio family survived in the Koniac region in southwestern France for five generations, through wars and financial crises. Now, though, some vineyards began to tear with its roots.
US president Donald Trump’s decision this week to slap 20 % of customs tariffs on all European commodities deepens pain in the code of about $ 3 billion, which have already been equipped through global trade tensions.
In October, Beijing targeted 4000 region farmers with a tariff after the European Union fees for Chinese -Chinese electric cars. Since then, Cognac sales have decreased to China, its second largest market, by more than half.
With the United States – the best cosmic consumer in the world – which represents one of all two bottles sold, Trump’s tariff has left many farmers.
Fillioux, the 45 -year -old owner and Master mixer at Jean Filliox Cognac, who was established in 1894 by his great great grandfather, had already torn half a hectare of ancient chrome farms. He plans to uproot another and a half and a half next year as part of an industry plan to help farmers through the crisis.
“It is very difficult to move in the situation. We have a big vision problem,” said Felio, standing in the generosity of his father’s implantation in 1980 – the year when he was born.
The worst may come. Trump threatened 200 % of customs tariffs on European wine and spiritual drinks if Europe hit us with Purbon with additional duties.
Conneyk exports to the United States last year amounted to nearly one billion euros ($ 1.10 billion). The United States is also the highest export market in France for wine: sales increased by 8 % last year to $ 2.3 billion last year, according to the Federation of Exporters of Wine and Spiritual Drinks, partly as buyers were stored in anticipation of Trump’s policies.
Fillioux works with distribution partners to try to develop new markets in countries including Thailand, Vietnam and Nigeria.
But he considers himself more fortunate than some other producers: he has a little debt and owns his brand, which makes him less dependent on contracts with large houses like Hennessy owned by LVMH, the largest CGNAC maker.
“The problems are part of Vintner’s life, with all good and bad surprises,” he said.
Global slowdown
Even before commercial tensions with China and the United States – which have more than three -quarters of the categoric revenues – Connect sales have been declining over the past two years due to the global slowdown in luxurious spending.
Before that, the industry expanded production volumes to meet the prosperous demand during the Covid-19s. Recently in 2022, Connac Biotz has encouraged farmers to buy more chrome and manufacturers.
Now many farmers in the area find themselves debtors with their income deteriorating.
“We will manage these positions with the best that we can with banks,” said Florent Morlon, head of the NCEAL office, Remy Martin, Bernod Ricard Martel and Camry Foundation.
“All investments made by Connac, Firins, and a fighter are based on work decisions. After that, external factors have arrived,” Morelon added.
Complex shrinkage
Bertrand Blanchetton, a professor of economics at the University of Bordeaux, said that exporting approximately 97 % of its production was the code in France always dependent on international trade. “Koniac was born from an alliance of foreign merchants and local farmers.”
Since the seventeenth century, when the Dutch businessmen brought their knowledge of the region and taught the local population how to make Brandi, Konya has always been heading to consumption abroad, with Irish, English and Scandinavian merchants who open their homes and charging cosyak abroad.
In February, the BNIC Industry, which oversees production, reduced the annual production limit for the third year in a row to only half levels of 2022, noting “a strong economic environment and an unprecedented decline in global consumption.”
“We are only at the beginning of the crisis,” said Jerome Soriso, a local politician and head of the municipal group formed by the villages surrounding Konak.
He said that unemployment is high because the homes and mourners of the cosyak have stopped employing workers in the short term, while some began to put the employees.
COGNAC producers and suppliers, including packaging facilities, packaging companies, barrel makers, cork and containers, use about 70,000 people in the region.
Some, such as Tonnellerie Vicard, a century -old oak maker, face additional success, as they export their goods to American wine makers as well.
General Manager Jerome Schmidt said: “We have already told us customers on the same night that they needed to review the requests they have already submitted, which reduced the folders with the amount of definitions that they will have to pay,” said General Manager Jerome Schmidt.
A special association
Blanchetton said that Konyaak has a “special bond” with the Black Society. He said that the black American soldiers discovered the drink during World War II and brought it home, before the CEOs, led by Hennessy, began to declare in the 1990s and Fine.
In 2012, rapper Jay-Z created the Cognac D’ox brand in partnership with Bacardi, while Hennessy concluded a care deal with the American Professional League basketball league in 2021.
But even before commercial tensions, the United States’ sales of the United States were stumbling, due to the high levels of aggressive prices in recent years that affect the middle -class consumers, said Thomas Maysin from luxury consultations in Paris.
“The Americans not only started drinking a cosyak less, but they also replaced their consumption positions towards other lives such as Tikila and whiskey.”
Missamene said that while most of the advanced cognac is exported to Asia, American works are dominated by lower cost bottles, as they were sold for $ 36-60, and collective sales brands such as Hennessi have failed to expand the base of consumer.
“It is only a specific part of the population in a few cities,” he said.
Industry President Morelon expected that Koniac will lose its market share in the United States, and the producers will be unable to transfer the full cost of definitions to consumers there.
“It is up to every house to decide, but we know today that in the current context, even if you are increasing by $ 1 or 2 dollars, this may lead to disruption,” he said.
Pascal Dobuy, 67, said that he is likely to drip this season and sell more grapes to drivers who make cheap wine to reduce its losses.
“There is another problem that was added to the lint,” said Dobuy, who lives in Ambelfil, a village near Conneck, when asked about trade tensions with the United States.
Duboy said that the Great Cognac Remy Martin has reduced its contracts with him by half of nearly half, and it is expected that Hennessy will also buy much less, leading to a 40 % decrease in his expected revenues this year. Companies did not respond to a request for comment.
With his interesting daughter not showing the stalled deeds, Duboy said it is likely that the last generation of cosmic makers in his family.
“You start to ask whether it is still worth it,” he added.
($ 1 = 0.9097 euros)
(Participated in the reports of Tassilo Hummel, additional reports by Syepille de la Hamaide; edited by Daniel Flynn)
