Hennessy’s Cognac Crisis
- Cognac, France – following the completion of renovations to the west facade and east wing of the Otard castle, and the recent inauguration of the restored Porte Saint-Jacques,...
- Among the stalled projects is the planned new headquarters for the Cognac National Interprofessional Office (BNIC).
- Work on the Hennessy site, which began in July 2022 with the clearing of buildings, progressed through demolition in the spring of 2024, followed by archaeological excavations that...
cognac Sales Slump Halts Development Projects in Region
Table of Contents
- cognac Sales Slump Halts Development Projects in Region
- Cognac Region Progress Projects Halted: Your Questions Answered
- Why have development projects in the Cognac region been put on hold?
- What specific projects are affected by the sales slump?
- What is the status of the hennessy project?
- When did the Hennessy project begin, and what was it intended to achieve?
- What is the role of Moët Hennessy in this situation?
- What is the future of the Richonne project?
- What about the planned wine tourism development?
- What is the BNIC headquarters project and why is it stalled?
- How have local officials responded to these delays?
- What are the key financial impacts of these project halts?
- Summary of stalled Projects
Cognac, France – following the completion of renovations to the west facade and east wing of the Otard castle, and the recent inauguration of the restored Porte Saint-Jacques, a series of ambitious development projects in the Cognac region have been put on hold. A important decline in cognac sales, exacerbated by trade tensions with the United States and China, has prompted the pause.
Among the stalled projects is the planned new headquarters for the Cognac National Interprofessional Office (BNIC). The project, slated for the site of the former Green Hall, was purchased from the city. Rehabilitation work on the historic Richonne site, the head office of Hennessy, has also ceased, leaving what some describe as a “wasteland” visible to visitors entering through the recently restored Porte Saint-Jacques.
Hennessy Project on Hold Pending New Leadership Review
Work on the Hennessy site, which began in July 2022 with the clearing of buildings, progressed through demolition in the spring of 2024, followed by archaeological excavations that uncovered remnants of the old Cordeliers convent. However, all activity stopped several months ago. According to the Hennessy Dialog Service, the pause is to allow the new president, Charles Delapalme, who took office in early May, time to review the project files.
“You have to give time to the new president [Charles Delapalme, arrivée début mai, Ndlr] To take note of the files, including that of the work.”
The consolidation project, involving five buildings, aimed to modernize the site, create a unified aesthetic, and provide additional office space to accommodate a growing workforce. However, with a downturn in the market, hiring has been frozen, and Moët Hennessy, the LVMH subsidiary that includes Hennessy, recently announced the elimination of 1,200 positions across its 29 companies.
The future of the Richonne project, and also a large-scale wine tourism development planned across the river, remains uncertain. The wine tourism project envisioned a glass structure connected to the quays by a footbridge near the old bridge site in front of the Saint-Jacques gate.
Officials Express Regret, Remain Optimistic
Local officials, who had anticipated further enhancements to the city following Hennessy’s renovation of the quays and funding for the Porte Saint-Jacques restoration, expressed disappointment at the project delays. Morgan Berger, a local official, stated optimism, “Sometimes there are moments of break on the construction sites, that does not mean that we do not work in masked time. I am not worried, the project is not abandoned. But I would like it to end as quickly as possible, for the embellishment of the neighborhood.”
Jérôme Sourisseau voiced stronger regret regarding the tourism project, stating, ”It was a revolution and a real architectural gesture. It is terrible because at 24 months old we had it and we would have needed it. I hope he will not fall into oblivion and he will come back when there are better days.”
BNIC Headquarters Project Stalled
The foundation stone for the new BNIC headquarters was laid two years ago, but little progress has been made as, aside from initial excavations. Economic challenges and inflation impacted the Bordeaux-based promoter, Redman, leading to a broken contract and inability to maintain the €18.4 million budget.The BNIC decided to abandon the initial project in November, opting for a phased approach, prioritizing the wine tourism component. Though, six months later, no progress has been made.
BNIC President Florent Morillon is delaying any decisions until early July, pending the outcome of trade discussions between Beijing and Washington. The vacant Green Hall site remains a source of frustration for former tenants and the local government, which invested €450,000 in the project.
Cognac Region Progress Projects Halted: Your Questions Answered
Why have development projects in the Cognac region been put on hold?
A critically important decline in cognac sales,exacerbated by trade tensions with the United States and China,has caused a pause in several ambitious development projects in the Cognac region of France. This reversal follows the completion of recent renovations, including work on the Otard castle and the restoration of the Porte Saint-Jacques.
What specific projects are affected by the sales slump?
Several significant projects are stalled, including:
The planned new headquarters for the Cognac National Interprofessional Office (BNIC).
Rehabilitation work on the historic Richonne site, the head office of Hennessy.
A large-scale wine tourism development planned across the river.
What is the status of the hennessy project?
The Hennessy project, which began in July 2022, has been put on hold. Demolition and archaeological excavations uncovering remnants of the old Cordeliers convent were completed. Though, all activity stopped several months ago. The pause is attributed to a review by the new president, Charles delapalme, who took office in early May.
When did the Hennessy project begin, and what was it intended to achieve?
work on the Hennessy site commenced in July 2022. the project aimed to modernize the site, create a unified aesthetic, and provide additional office space. However, with the market downturn, hiring has been frozen.
What is the role of Moët Hennessy in this situation?
Moët Hennessy, the LVMH subsidiary that includes Hennessy, announced the elimination of 1,200 positions across its 29 companies. This cost-cutting measure further illustrates the impact of the cognac sales decline.
What is the future of the Richonne project?
The future of the Richonne project remains uncertain. The project was intended to modernize and expand Hennessy’s headquarters. Current market conditions have led to a pause,pending further assessment by the new leadership.
What about the planned wine tourism development?
The wine tourism project,envisioned as a glass structure connected to the quays by a footbridge,also faces an uncertain future. Local officials express regret, stating the tourism project ”was a revolution and a real architectural gesture.”
What is the BNIC headquarters project and why is it stalled?
The foundation stone for the new BNIC (Cognac National Interprofessional Office) headquarters was laid two years ago. The project, slated for the former Green Hall site, has seen little progress as initial excavations. Economic challenges and inflation impacted the Bordeaux-based promoter, leading to a broken contract. The BNIC decided to abandon the initial project in November, opting for a phased approach. Decisions are delayed untill early July,pending the outcome of trade discussions between Beijing and Washington.
How have local officials responded to these delays?
Local officials have expressed disappointment but remain optimistic. Morgan Berger, a local official, stated, “I am not worried, the project is not abandoned.” Jérôme Sourisseau voiced stronger regret regarding the tourism project.
What are the key financial impacts of these project halts?
BNIC Headquarters: The original budget for the BNIC headquarters was €18.4 million. the local government invested €450,000 in the project.
Hiring Freeze: Moët Hennessy, consequently of the decline in the cognac market, froze hiring.
Job Cuts: Moët Hennessy announced the elimination of 1,200 positions.
Summary of stalled Projects
| Project | Status | Reason for Delay |
| :—————————————— | :————————————————————————- | :—————————————————————————— |
| BNIC Headquarters | Stalled; Vacant Green Hall site. | Economic challenges; broken contract; pending trade discussions. |
| hennessy Richonne Site Rehabilitation | On hold | New leadership review; downturn in market |
| Wine Tourism Development | Future uncertain | General economic slowdown and market uncertainties |