Armenian Brandy Producers Agree to Stop Using ‘Cognac’ Label Following Lengthy Dispute With EU Authorities
On Wednesday, Armenpress reported that Armenian brandy producers will forgo the “cognac” label that has distinguished their bottles over the past 125 years. The agreement follows a century-long back and forth with French officials who have fought to distinguish cognac as a product exclusively originating from France’s commune of Cognac.
During budget discussions, Minister of Economy Gevorg Papoyan said that the country’s products will be rebranded as “Armenian Brandy” from 2025 onward. The E.U. will reportedly launch a support program in weeks to come that will lay the groundwork for quality control, laboratory infrastructure, licensing and inspection procedures.
Armenian brandy distillers have historically used the localized term “Konyak” to market their liquor, of which around 40 million liters are produced annually. An estimated 80% of that output is exported to Russia.
Just as true tequila can only be made in Mexico and true feta cheese made in Greece, cognac can only be made in the eponymous Cognac region of France. It’s surprising that Armenia has been allowed to use the verbiage until recently; suffice it to say that France does not play around when it comes to protecting its designated origin spirits.
If nothing else, the mere mention of a recognizable name can erupt into lawsuits and literal mass destruction.
Two thousand cans of Miller High Life, famously subtitled “The Champagne of Beers,” were confiscated and crushed by E.U. customs authorities in 2023 in a public show of force. Little over a month later, 35,000 bottles of the Haitian brand Couronne Fruit Champagne — a bright orange soda with zero alcohol content — met a similar fate. Elsewhere, American hip-hop label Cologne & Cognac Entertainment is knee-deep in a legal battle with a French trade union. Early proceedings paint a rough road ahead for the music imprint.
But Armenian brandy is different. Far from a knock-off, the liquor has long held precedent over the disputed term it’s now giving up.
The story begins in the heart of Paris, where the Grand Prix tasting exhibition was held in 1900. Yerevan Brandy Company, the largest producer in Armenia both then and now, stood shoulder to shoulder against the region’s most acclaimed spirits. In a decision that’s impossible to imagine in hindsight, a unanimous grand jury recognized Yerevan’s quality by granting it use of the word “Armenian cognac” for the foreseeable future. That right was revoked after World War II.
The slogan nonetheless stuck, leading to its widespread (and technically unregulated) use among other brands in the country.
The plot thickens further. Yerevan was eventually acquired in 1999 by French spirits firm Pernod Ricard, the same company that owns Martell Cognac. Up until now, the conglomerate operated the two brands with a paradoxical concession — one abided by designation of origins laws while the other decidedly did not. Yerevan’s flagship brandy, ArArAt, will be the biggest name to give up the “Armenian cognac” indicator under the recently announced changes.
The timing of the news lines up with a period of turmoil for the cognac industry.
A highly publicized trade scuffle between the E.U. and Chinese officials has led to tariffs as high as 39% on European brandy exports to China. Under normal conditions, China is the world’s second-largest consumer of cognac, regularly generating over $1 billion per year for heavy hitters like Pernod, Moët Hennessy and Rémy Cointreau. Insiders have suggested that the tariffs amount to much more than a simple tax.
“When China announces an investigation, it is the start of the ban on French Cognac, an effective ban. It signals to society in China that Cognac is no longer in favour,” Ian Ford, chief executive of Shanghai-based alcohol management company Nimbility told the South China Morning Post in January. “Therefore, if you’re at a big banquet, entertaining a government official, it’s taboo now to be drinking or gifting Cognac.”
Armenia is not part of the E.U. and is thus exempt from the tariffs. By dropping the use of the word “cognac,” it’s possible that Armenian distillers will be able to capitalize on a China-sized void in the market that could prove wildly lucrative in years to come.
