Strike at French cognac maker Hennessy over measures in China spat [Video]

Hundreds of employees of French cognac maker Hennessy, part of the LVMH group luxury empire, went on strike on Tuesday to protest measures the brand plans to employ to circumvent Chinese tariffs imposed in a spat with the EU.

Some 500-600 staff in cognac’s home Charente region in southwestern France were protesting at an experimental plan to export the drink in vats, rather than bottles, which will be subject to additional taxes estimated at 35 percent, France’s CGT and FO unions said.

“Management told us they wanted to do tests on exporting the products in vats with a view to future bottling in China by a service provider” and no longer in France, Frederic Merceron, FO representative at Hennessy, told AFP.

“We can well imagine the impact on employment,” he added, describing the news as a “cold shower.”

“This is a first for a major house. It’s a real spanner …