Bordeaux and Cognac trading companies create a joint federation

he Bordeaux and Cognac wine regions can seem to be worlds apart when it comes to their product ranges, their industry structure and their sourcing. Whilst Bordeaux produces mainly still wines, Cognac is virtually all about brandy; whereas Cognac is dominated by a few major players, Bordeaux is more akin to an ill-disciplined army; and Cognac companies mostly secure their supplies through multi-year contracts. The purpose of the new federation is to “combine the missions of the two existing organisations and their members in order to act together in their shared region, New Aquitaine, and to help spread their influence worldwide”, claims a press release. The release also points to “a common core business, particularly from a sales and export perspective”. With the same approach to export facilitation, both appellation regions support each other and rally round to ward off threats of protectionism, from the Chinese anti-dumping investigations to American threats that remain very real.

With 80 members, Bordeaux Négoce reportedly handles 60% of Bordeaux sales volumes worth 3 billion euros in revenue at the end of 2023, 60% of which comes from exports. Its Cognac alter ego SMC has 42 member companies and handles 99% of Cognac shipments generating 3.3 billion euros in revenue in 2023, 97% of which stems from export markets. Looking at the figures, it takes half the number of Cognac shippers to produce the same revenue as the Place de Bordeaux.

The two shipping organisations account for 37% of wine and spirits export values. “The industry is in favour of open, fair free-trade dynamics. The removal or mitigation of tariff and non-tariff barriers, regulatory harmonisation and co-operation between States allow market diversification and are the cornerstones of stable growth that benefits the entire industry value chain”.