Armenian Cabinet OKs Deal With EU To Rebrand 'Cognac' Brandy

Faizan Hashmi Published June 10, 2021 | 03:48 PM

The Armenian cabinet on Thursday took the EU's offer to give up using the word "cognac" to market the Armenian brandy in return for 3 million euros ($3.6 million) in assistance for rebranding

YEREVAN (UrduPoint News / Sputnik - 10th June, 2021) The Armenian cabinet on Thursday took the EU's offer to give up using the word "cognac" to market the Armenian brandy in return for 3 million Euros ($3.6 million) in assistance for rebranding.

Armenia has been banned from selling its "cognac" in the EU over the misappropriation of the geographical indication that is reserved for alcohol from the western French region of the same name.

The two signed a Comprehensive and Enhanced Partnership Agreement in 2017 that specifically mentioned that Armenia would rebrand its "cognac" brandy and "champagne" sparkling wine to comply with EU rules.

"The price tag is 3 million euros. The goal of the financial agreement is to gradually phase out the use of the geographical indication 'cognac' for products originating in Armenia, while maintaining Armenia's competitiveness in export markets," Economy Minister Vahan Kerobyan said.

The funding will go toward developing a new name for Armenian brandies as well as promoting, advertising and marketing them in domestic and traditional export markets.