New York —
At 261 years old, Cognac brand Hennessy is starting to show its age.
After a pandemic-era surge in demand, the amber-colored spirit is navigating a sobering reality. Consumers, particularly younger ones, are moderating their drinking or shifting toward premium tequila. As a result, exports from France’s Cognac region have plummeted. At the same time, tariffs from the United States and China are also taking a sizable bite out of profits for parent company LVMH.
That has put immense pressure on one of the most recognizable liquor brands to evolve.
“It’s a strange thing to have a brand that is not consumed, but culturally very relevant,” said Hennessy CEO Charles Delapalme.
