Hennessy, a subsidiary of LVMH, has decided to cancel its plan to ship Cognac in vats to China in order to avoid tariffs.
This decision comes after workers at the French facility went on strike to protest against the company's initial plans.
Frederic Merceron, a representative from the Force Ouvriere union, confirmed that management has informed them about the suspension of shipments that were scheduled to take place soon.
This move reflects the ongoing tensions within the company as it deals with international trade challenges and labor relations.
The strike has brought attention to the concerns of employees regarding operational changes that could have an impact on their jobs and the brand's reputation in the global market.