The transition to new rules for the labelling of alcoholic beverages has proven to be one of the most complex aspects of Ukraine’s implementation of the EU-Ukraine Association Agreement. What initially appeared to be a “simple” step – abandoning the familiar names cognac and champagne – in fact involved a multi-layered process touching on matters of legislation, trade, customs procedures, competition, and international cooperation.
As noted by Stanislav Koptilin, Senior Associate at the Ukrainian office of PETERKA PARTNERS, which represents institutions authorized to protect the geographical indications Cognac and Champagne, 1 January 2026 marked the formal completion of one of the longest and most challenging transitional periods under the Association Agreement.
From that date on, Ukrainian producers are no longer entitled to use the names cognac and champagne to label newly produced alcoholic beverages. What only a few years ago seemed like a purely terminological change has, in practice, resulted in a profound transformation of the market.
The first weeks following the end of the transitional period already allow for preliminary conclusions regarding how the industry has adapted to the new rules and what consequences this has had for producers, importers, and consumers.
How Ukraine Entered the Transition Process
The EU-Ukraine Association Agreement, signed in 2014, required large-scale adaptation of Ukrainian legislation to EU standards, including the protection of geographical indications. For the European agricultural and wine markets, this is one of the most sensitive areas: a geographical name is not merely an indication of origin, but an integral part of a system of quality assurance and reputation.
For this reason, the EU insisted that Ukraine discontinue the use of a number of traditional product names, including cognac and champagne – products intrinsically linked to specific French regions.
In 2016, Ukraine registered these geographical indications in its National Register. This provided additional legal recognition of their origin.
The ten-year transitional period was not chosen by chance. For decades, Ukrainian consumers had perceived cognac as any type of brandy and champagne as any sparkling wine. Producers needed time not only to change labels, but also to develop new trademarks, launch marketing campaigns, restructure cooperation with retail chains, and reshape consumer perceptions. As a result, Ukraine was granted one of the longest transitional periods among countries implementing similar reforms.
Who Controls the Use of the Names and How the International Protection Mechanism Works
The protection of the geographical indications Cognac and Champagne is ensured through a comprehensive system of French institutions.
The coordinating authority is the National Institute of Origin and Quality (INAO), subordinated to the French Ministry of Agriculture. The INAO oversees the entire system of geographical indications and is mandated to protect them both in France and internationally.
At the sectoral level, protection is carried out by the National Interprofessional Bureau of Cognac (BNIC) and the Interprofessional Committee of Champagne Wines (CIVC). These organizations unite producers and traders of the respective products and actively combat the unlawful use of the names worldwide.
In Ukraine, these institutions acted in a coordinated manner, and their legal interactions with Ukrainian producers and regulators were ensured by the PETERKA PARTNERS law firm.
The Customs Register: A Turning Point for the Import Market
A key milestone in the protection of the Cognac geographical indication was its inclusion in the Customs Register of Intellectual Property Rights Objects in January 2022. This decision proved to be a turning point as customs authorities gained a clear enforcement mechanism: any import of beverages labelled as cognac and produced outside France became subject to automatic suspension.
This immediately reshaped market conditions. Producers from Georgia, Armenia, Moldova, and other countries, effectively lost the ability to supply products labelled as cognac to the Ukrainian market. At the same time, Ukrainian producers preparing to transition to the brandy designation benefitted from more balanced competitive conditions, as importers could no longer rely on the familiar name.
Unexpected Challenges: Import Stocks and Financial Losses
Immediately after these restrictions were introduced, importers submitted numerous requests related to products that had already been manufactured or purchased under the cognac designation. Some companies had already acquired excise stamps, while others had incurred high costs for packaging, logistics, and/or marketing.
To prevent substantial financial losses, the BNIC agreed to a short transitional grace period during which certain products manufactured before the inclusion of the Cognac geographical indication in the Customs Register could still be imported to Ukraine. Once this period ended, the market gradually cleared of foreign products unlawfully labelled cognac.
War as a Factor of Regulatory Flexibility
Russia’s full-scale invasion of Ukraine introduced additional complexity even in such a rigid area as the protection of geographical indications. One major Ukrainian producer in the Odesa region lost its production facilities as a result of a missile strike, but retained substantial stocks sufficient to produce approximately 700,000 bottles.
To salvage the product, temporary bottling was organized at a plant in Moldova, with raw materials and labels transported there and the finished bottles then returned to Ukraine. Although this approach formally deviated from standard rules, the product was made from Ukrainian raw materials and intended exclusively for the domestic market. The BNIC did not oppose this, demonstrating regulatory flexibility under wartime conditions and helping to avoid additional losses for Ukrainian producers.
The Sparkling Wine Market: A Less Problematic Scenario
The transition regarding the use of the Champagne designation was significantly smoother. Monitoring of retail chains and online platforms shows that Ukrainian producers have almost entirely switched to using the labels sparkling wine or Champagne of Ukraine. Imported products not originating from France also refrain from using the Champagne designation. Overall, the sparkling wine segment was far better prepared for the transition than the brandy segment.
Was an Extension of the Transitional Period Possible?
Some producers advocated for extending the transitional period due to the high costs of rebranding and promoting new product names, particularly under wartime conditions. They also noted that Ukrainian consumers still often perceive cognac as a generic term for brandy, while competition with imported products long marketed as brandy remains strong.
However, arguments against extension prevailed. The EU rarely agrees to repeated postponements, Ukraine undertook clear commitments, and most producers had already completed or were close to completing the adaptation process. There were no indications of negotiations on prolongation, and the industry proceeded on the understanding that 1 January 2026 was the final deadline.
Implications for European Integration
For the European Union, geographical indications are not merely a legal instrument, but part of a broader cultural and economic framework. They protect the reputations of producers, guarantee product quality, and ensure competitive advantages on global markets.
For Ukraine, compliance with GI protection requirements opens new negotiation clusters in the EU accession process and strengthens the country’s reputation in the field of intellectual property protection. It also serves as a test of regulatory predictability and the ability of the state to fulfil commitments.
What Changed After 1 January 2026
Producers that fail to adapt their products to the requirements of the Association Agreement may face bans on product circulation and reputational damage. At the same time, the reform creates new opportunities. Ukrainian companies can develop new trademarks that comply with international standards. Also, proper labelling facilitates access to foreign markets and reduces legal risks, and transparent rules foster healthier domestic competition.
Conclusion
The Ukrainian alcohol market has entered a decisive phase of transformation. Abandoning the traditional names cognac and champagne is not a loss, but a transition to a fairer, more transparent market model aligned with international standards.
From 1 January 2026, producers faced a clear choice: complete the transition and become part of the European market, or remain on its margins.
By Stanislav Koptilin, Senior Associate, Peterka & Partners
