EU Ready to Allocate €3 Million to Armenia in Exchange for Giving Up the 'Cognac' Name

The European Union is prepared to allocate €3 million to Armenia in exchange for the relinquishment of the 'Cognac' name. During today’s session, the Armenian government approved the agreement for assistance signed between the Republic of Armenia and the European Union.

The purpose of the financing agreement is to facilitate the smooth and effective discontinuation of the 'Cognac' geographical indication, as well as to support the export of Armenian brandy under a new name and maintain its competitive position in foreign markets.

'Actions aimed at implementing the program include the capacity development of authorized bodies to discontinue the use of the Armenian brandy name and promote the new name, the development of a new brand based on the assessment and study of current initiatives, a marketing plan intended for local and exporting traditional markets that includes brand positioning, philosophy, history presentation, name, slogan, a roadmap for advertising campaigns for various target markets, and more,' according to the justifications provided in the government’s decision.

The program will be funded by the EU budget under the European Neighbourhood Instrument. The monitoring of the program’s implementation will be overseen by the EU Delegation in Armenia and the Ministry of Economic Development of Armenia.

It is worth recalling that the requirement to abandon the 'Cognac' name is stipulated in the 'Comprehensive and Enhanced Partnership' agreement signed between the Republic of Armenia and the European Union on November 24, 2017, which fully entered into force on March 1, 2021.

Moreover, the same agreement also anticipates relinquishing the 'Champagne' name. Armenia has been given a deadline until 2043 to abandon these names and select new designations.