The global spirits market is undergoing a profound yet understated transformation. With China’s Ministry of Commerce implementing anti-dumping duties on EU-imported brandy, trade data has already revealed clear signals: in the first four months of 2025, brandy—long ranked as the No.1 imported spirits category—saw a dramatic decline. Import volume fell to approximately 3.19 million liters, down 69.85% year-on-year, while import value dropped to about USD 74.13 million, a year-on-year decrease of 82.15%. Among these, French Cognac experienced particularly striking declines.
Unexpectedly, the industry’s focus in the wake of this shock has not been on “substitutes” for European brandy, but on an independent category defined by “no added sugar” and “no oak extracts”: estate brandy.
01 Standard Upgrade: A Distinct Chinese Terroir Takes Shape
As a major category in the global spirits market, brandy has long been governed by rules dominated by French Cognac. This began to shift after China released its revised national brandy standard in July last year.
As a distilled spirit, brandy places great importance on grading. Grades not only signal quality, but also reflect production techniques and aging duration. The French-led system primarily evaluates quality based on time spent aging in oak barrels—the longer the aging, the higher the grade.
In contrast, the new Chinese brandy standard—led by the Koya Brandy Estate under the century-old Changyu group—introduced several landmark changes. It formally defined “estate brandy” for the first time and established the principle of “two prohibitions”:
no sweetening agents such as white sugar, liquid sugar, or honey;
no oak extracts, chips, blocks, or shavings.
It also significantly raised minimum aging requirements: VSOP must be aged at least 6 years, XO at least 10 years, and XXO at least 15 years.
Clearly, China’s new standard represents a comprehensive upgrade of the brandy rulebook. It breaks away from the single metric of barrel aging time and re-anchors premium spirits around a core principle: time is the only true winemaker. Only authenticity can withstand the test of years.
Previously, adding sugar or oak extracts was common industry practice. Sugar was used to enhance richness and simulate maturity, thereby inflating grade and price. Estate brandy, however, derives sweetness naturally through fermentation and aging, delivering a lingering, refreshing finish while remaining effectively zero-sugar—fundamentally different from the cloying mouthfeel created by added sugar.
Similarly, oak extracts were sometimes used to rapidly “inject” woody aromas and give a false impression of depth and age. Yet compared with estate brandy produced through long and complex aging, such products lack aromatic complexity and the gradual refinement of compounds that lead to ultimate balance—the hallmark of top-tier brandy.
The new regulations require explicit labeling of sugar content, directly challenging imported products that rely on sweetening, especially as Chinese consumers increasingly prioritize health and ingredient transparency. As a result, the “two prohibitions” are widely regarded as among the highest standards in the brandy world. They compel producers to invest fully in craftsmanship rather than post-production embellishment.
From a competitive standpoint, zero-sugar estate brandy enjoys a clear advantage. Under the stricter national standard, many well-known French Cognac brands have been required to list “liquid sugar” on their ingredient labels, exposing them to direct consumer comparison.
Notably, the new definition of brandy replaces “oak barrel aging” with the broader term “aging,” loosening restrictions on container types and materials. This opens the door to diverse aging vessels—various woods, clay jars, or traditional Chinese vats—allowing Chinese terroir and culture to shape new expressions of brandy. The category thus becomes more diverse, with deeper cultural resonance.
The goal of the new standard is to raise the overall quality threshold of domestic brandy, guide industrial upgrading, and align with evolving consumer demand. In the long run, it positions China to participate in setting and competing within global brandy quality standards. Beyond visible market differentiation, the “authentic aging” standard promoted by leaders such as Changyu signals a shift from “imitating Cognac” toward expressing Chinese terroir.
02 Reshaping the Landscape: From “Substitute” to “Independent Category”
For decades, French Cognac has enjoyed global prestige. Amid the dominance of international brands, China’s brandy story has unfolded quietly but continuously.
In 1892, the renowned patriot and overseas Chinese leader Zhang Bishi founded Changyu in Yantai, China’s first wine enterprise, and began producing brandy. In 1914, Changyu distilled China’s first barrel of brandy, naming it “Koya.” In 1915, at the Panama-Pacific International Exposition in San Francisco, Koya won a Grand Gold Medal—China’s first international gold for brandy.
In 2019, at ProWein Düsseldorf, The Drinks Business hosted a globally watched XO blind tasting featuring leading XO brands worldwide. China’s Koya 15-year barrel-aged XO won first place with 93.8 points. Judges remarked with surprise and enthusiasm: “Today we have discovered a new world of high-end brandy—from China.”
This victory marked a milestone in China’s entry into the world’s top brandy ranks. With outstanding quality and a distinct Eastern style, Koya moved beyond being a mere “alternative” to Cognac, emerging as an independent category and appearing on Western dining tables.
In August 2020, Changyu signed an export agreement with Wein Wolf, part of Germany’s Hawesko Group, officially entering the European market. In February 2021, Koya launched in the UK through Bibendum, supplier to the 2012 London Olympics. Today, Koya is sold in Germany, France, the UK, Switzerland, Italy, Canada, and beyond.
At the 2024 China Brandy Technology and Quality Development Conference, Yantai was designated “China’s Brandy Capital.” The unveiling of the “China’s Brandy Capital · Yantai” sculpture at the Koya Brandy Estate—the country’s first brandy estate—underscores a single conclusion: Koya has not only joined the ranks of the world’s top brandies through hard strength, but has also reshaped global palates with an Eastern expression. After more than a century of accumulation, the future of brandy is no longer a solo performed by France.
03 The Moment Has Arrived: A Historic Turning Point for Chinese Brandy
Rule-makers ultimately become market leaders. As Chinese-style flavors led by Koya achieve zero-sugar standards, the value coordinates of premium brandy—and even spirits as a whole—are being reset. The golden era of Chinese brandy may be unfolding.
First, the new standard creates structural advantages for domestic producers. Stricter production and aging requirements establish clear quality benchmarks, lifting the industry overall and pushing brands toward premiumization.
Second, as a strong spirit like baijiu, brandy holds vast potential in China. Symbolizing elegance and refinement, with cultural depth and collectible value, brandy is carving out a new niche alongside traditional baijiu consumption.
Third, health-oriented consumption trends align closely with the new standard. Demand for zero-sugar, low-additive beverages is rising among affluent consumers. By enforcing stricter raw-material and process controls, the standard reinforces brandy’s positioning as a “naturally premium spirit,” enhancing its appeal in high-end social and wellness contexts.
In fact, the value of brandy extends far beyond consumption. Zhang Bishi founded Changyu with the aim of conserving grain and earning foreign exchange for the nation. In a memorial to the Qing court, he argued that grape-based spirits could replace grain-based alcohol, saving food while generating export value.
Since Changyu’s founding, wine grapes have transformed barren slopes and marginal lands, revitalizing rural employment. Viticulture, winemaking, tasting, and tourism now link primary, secondary, and tertiary industries. Compared with grain-based spirits, grape brandy delivers multiple benefits: land efficiency, farmer income growth, and cultural value. This “not competing with grain for land, but turning land into wealth” aligns closely with rural revitalization and food security strategies.
According to France’s Cognac interprofessional body, the French brandy industry encompasses 4,400 farms, 120 distilleries, and 270 trading houses, creating 15,000 direct and 70,000 indirect jobs. A strengthened Chinese estate brandy sector could generate similarly broad economic and social benefits.
Overall, Chinese brandy stands at a convergence of favorable timing, geography, and human effort. New standards raise quality, premium demand fuels growth, and health trends reinforce advantages—together driving the transition from “Made in China” to “Chinese brands” on the global spirits stage.
Conclusion
On the surface, this may appear to be a transformation sparked by “zero-sugar” products. In reality, it signals a deeper industry shift. Through transparent standards and stricter craftsmanship, Chinese brandy is redefining quality and elevating competition to a new level.
Driven jointly by policy, standards, and market forces, this turning point raises a fundamental question: who will define the future rules of the spirits world? In hindsight, the answer may become evident in a reshaped market landscape. For consumers, in an era increasingly devoted to authenticity, the ultimate luxury lies in purity—unadorned and true.
Source: Caixin Weekly