The Cognac sector is based on a very specific terroir and territory with more than 270trading houses of various sizes and more than 4,400 farms. The importance of the history and the construction, over a long period of time, of the know-how and knowledge accumulated by the local actors are explanatory factors. Emmanuel Nadaud's article "The Legend of Cognac" in "Revue des Deux Mondes" elucidates the secrets behind the production of Cognac.


The demand for quality and an orientation towards high-end products

Cognac is a top-of-the-range product that is based on the region’s winegrowing and trading tradition as well as on the mobilization of age-old know-how that meets the needs of the industry: vine cultivation, distillation and aging of eaux-de-vie, blending and marketing. It is attached to a strict framework for the production of Cognac, the Cognac Geographical Indication (GI) exist since the 1930s, guaranteeing the high standards and quality of Charentais brandy. The respect of the specifications, and consequently the respect of the production process, has allowed its success and accompanied its recognition as a high-quality product in the world.




An export-oriented territory with a sense of commerce

Cognac is a product oriented towards international markets (98% of sales, of which nearly half are to the United States). This export orientation is part of the region’s historical trading tradition. Cognac is a product born of the will of foreign traders (the Dutch in the 16th century) and not of the producers. Cognac is a global product intended for international markets. It is adapted to export by nature. It has inscribed in the DNA of the region the idea that it is necessary to be open to the outside world and to adapt to the market.


Powerful distribution network

Centuries of heritage have led Cognac to create renowned brands, now part of major luxury and spirits groups worldwide, dominating their respective markets. With substantial funding, they enhance their global influence through distribution networks. Simultaneously, investments in production secure the supply of the Charente eau-de-vie.

The anchoring of the Cognac houses in the African American market

Cognac has established itself in the African American community as an identity product. By extension, Cognac is now presented in the United States as a product of minorities. This success is the result of a presence and support on the ground for the African American community from presence in jazz clubs from the 1930 to support for civil rights associations after the Second World War. The Cognac houses now benefit from the association with the big names in rap music, which use the Charente eau-de-vie as a distinctive sign of success.

Territorial governance: the organization of the Cognac sector and the strength of the networks

The Cognac sector is highly structured in the region.They are structured within the Bureau national interprofessionnel du Cognac (BNIC), which is in charge of strategic decisions for the sector to secure supplies for the Cognac houses on the one hand, and to guarantee outlets in line with the volumes produced for the vineyards on the other. The relationship between grape cultivation and trade is the cornerstone of the management in the Cognac region. BNIC provides an objective space for dialogue, uniting participants' collective strength, making industry success greater than the sum of individual achievements. The words partnerships, consensus, etc., find a real operational translation on the territory.

Comprehensive and distinctive training programs

The Cognac region provides primary and continuing education to meet the needs of the local industry, including grape cultivation and upstream industries related to packaging. The region's postgraduate education programs are distinctive, with two organizations holding crucial positions: the University of Spirits affiliated with the University of Poitiers, offering master's training in law and business, and the CIDS, a professional association providing continuing education for industry professionals.


Challenges in the Cognac industry

The robust growth of the Cognac industry should not overshadow inherent risks. For example, in terms of innovation, the “progressive” vision that encourages product and process diversification and innovation is diametrically opposed to the “traditionalism” vision that supports adhering to historical production methods. Additionally, challenges include the necessary ecological transformation for climate and environmental concerns, along with issues related to infrastructure and land. These factors pose significant challenges to the development of the Cognac industry.