Amid escalating trade wars that threaten France’s historic cognac industry, fifth-generation producer Christophe Fillioux is forging new paths for his family’s 131-year-old brand by actively developing markets in Southeast Asia and Africa.

Fillioux, 45, owner and master blender of Jean Fillioux cognac house, has reportedly initiated partnerships with distributors in Nigeria, Thailand, and Vietnam as traditional markets face unprecedented challenges.

“The situation is very hard to navigate. We’ve got a huge visibility problem,” Fillioux told Reuters last week, standing among vines planted by his father in 1980.

The strategic pivot comes as U.S. President Donald Trump imposed 20% tariffs on European goods, dealing a severe blow to French cognac producers. The United States, which accounts for one out of every two bottles sold worldwide, represents the industry’s most crucial market with exports valued at approximately 1 billion euros ($1.10 billion) last year.

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Simultaneously, sales to China, the second-largest market by volume, have plummeted by more than half following Beijing’s October tariffs on the region’s 4,000 growers, implemented in response to European Union levies on Chinese-made electric vehicles.

Industry experts say Fillioux’s diversification strategy represents a calculated response to these mounting pressures. Unlike many producers who expanded aggressively during the pandemic boom, Fillioux maintains a relatively stable position with minimal debt and ownership of his brand, making him less reliant on contracts with major houses such as LVMH-owned Hennessy.

“He’s positioned himself well to weather this storm,” said Thomas Renaud, an analyst at Paris-based spirits consultancy Group SBC. “Emerging markets won’t immediately replace the volume of U.S. or Chinese sales, but they provide critical diversification.”

The Jean Fillioux estate has already uprooted half a hectare of vineyards and plans to remove another hectare and a half next year as part of an industry-wide plan to help growers through the crisis. This measure aligns with the Bureau National Interprofessionnel du Cognac’s February decision to reduce annual production limits to just half the levels of 2022.

While Fillioux acknowledges the significant challenges ahead, he maintains the pragmatic outlook that has sustained his family business since 1894.

“Problems are part of a vintner’s life, with all the good and bad surprises,” he said.