Cognac Makers Are Uprooting Vines. Dumping Supplies May Be Next

The vineyards of Cognac, sprawled across the rolling hills of southwestern France, are typically desolate in January. Once the grapes are harvested every fall and their juice is fermented and distilled to make the region’s namesake spirit, the area goes into hibernation. But this year, there are pockets of activity, with producers uprooting vines, the first coordinated removal since the late 1990s as the industry attempts to reduce production and revive a flagging market.

After years of exuberant demand for Cognac, the industry is nursing a hangover, with shipments last year falling to 141 million bottles, the lowest level since ...