On June 10, 2021, the Armenian government approved an agreement with the EU on financial support to Armenia in the amount of 3 million euros for the refusal to label “cognac” on alcoholic beverages.
The very agreement on the gradual abandonment of such labeling by the Armenian alcoholic beverages producing companies was signed back in 2017. This commitment was included in the roadmap for the implementation of the European Union-Armenia Comprehensive and Enhanced Partnership Agreement.
The goal of the € 3 million financial agreement is to facilitate a smooth and effective end to the use of the geographical indication “cognac” for Armenian products, as well as help the Armenian industry to maintain its competitiveness in export markets.
In particular, the program provides for the development of a new name for the Armenian cognac, its advertising, and marketing in the domestic and traditional foreign markets.
At present, Armenian cognac is exported to European countries as “brandy”, but to neighboring countries and is sold on the territory of Armenia as “cognac”.
Armenian producers will have to completely abandon the name “cognac” by 2043, but the production of new batches of alcohol under the name cognac will be banned from 2032.
The export of cognac brings Armenia 80-100 million US dollars a year and it is the fourth best-selling Armenian goods abroad.