Hennessy still exploring bottling Cognac in China to mitigate tariff challenges
LVMH's Hennessy, a renowned producer of premium Cognac, has been exploring a strategic pilot project to bottle its popular VSOP and XO lines directly in China, aiming to produce an estimated 600,000 cases annually for the domestic market. Henri Berthe, CEO of Rockwood Bottling, a French-owned glass and ceramic bottling plant in China, highlights several benefits of filling in China: • Tariff avoidance: By importing bulk spirits and bottling them in a Chinese free trade zone, Cognac producers can bypass steep tariffs on finished products. • Cost savings: Local bottling reduces expenses by leveraging Chinese-made glass and packaging materials, yielding savings of up to 20%. • Market agility: Bottling within China enables producers to maintain ready-to-ship inventory, improving responsiveness to market demand.