Cognac Industry Plans Vine Pullback to Curb Oversupply

The cognac industry in southwestern France is preparing a new temporary vine-pullback program as it tries to manage a deep market downturn without causing too much damage to growers and distillers. The plan, presented by the Bureau National Interprofessionnel du Cognac, or BNIC, would be put to a vote from June 1 through July 31, 2026, and is aimed at reducing vineyard area over several years.

Industry officials said the goal is to remove about 12,000 to 13,000 hectares of vines, or nearly 15% of the appellation’s planted surface. The proposal comes after months of weaker demand and growing pressure on the region’s production model. Christophe Veral, a grower and vice president of the interprofessional group, acknowledged that the sector had spent years encouraging new plantings and was now moving in the opposite direction.

The new measure follows two earlier attempts to adjust supply. One was the VCCI system, or individual complementary cognac volume, which allows producers some flexibility in managing output. The other was permanent vine removal, but that option did not gain broad support in the region. For the 2025 harvest, the VCCI program covered 1,718 hectares, and officials estimate it could reach about 2,300 hectares for the next crop.

The temporary pullback plan is meant to give producers a way to step back from production while preserving the possibility of returning land to vines later if market conditions improve. That distinction matters in a region where vineyards are tied closely to export demand and long-term investment decisions. The BNIC has not said how much compensation would be offered under the new scheme, but the vote will determine whether growers are willing to accept a broader reduction in acreage as the industry tries to stabilize prices and balance supply with demand.