Around 500 staff at Hennessy, the cognac maker owned by French luxury giant LVMH, went on strike on Tuesday, a union representative said, to protest what he said was a plan to potentially bottle the brandy in China to avoid tariffs.

Beijing imposed duties of more than 30% on imports of bottled brandy from the European Union in October, hitting Hennessy as well as other French companies such as Remy Cointreau and Pernod Ricard.

A plan to ship cognac in containers and bottle it in China rather than France was discussed last week by industry body Le Syndicat des Maisons de Cognac (SMC), said Michael Lablanche, a regional representative for the CGT labour union.
SMC could not immediately be reached for comment.

Rémy Martin has no plans to relocate its bottling line, a spokesperson from the French cognac maker said.
Newspaper La Tribune reported that Hennessy was considering a test bulk shipment of cognac by the end of the year.
Hennessy did not respond to calls and emails seeking comment on its plans and the strike.

Bottling in China rather than France would allow companies to circumvent the tariffs but would be a “disaster” for workers, said Lablanche.

Around 500 employees at its bottling plant in Cognac in southwest France had joined the strike so far, half of the plant’s workforce, said Lablanche.

Remy Cointreau has said it will raise cognac prices in China to help mitigate the impact of tariffs imposed by Beijing, and could also cut costs in areas such as manufacturing and advertising spending.