Cognac, the drink, is named after Cognac, the town, which is in France. It is a type of brandy, a spirit produced by distilling wine, white wine in this case.
Cognac is classed as an "appellation d'origine contrôlée" or "controlled designation of origin" whereby in order to be called by a name, a French foodstuff has to be produced within a certain region and meet certain requirements. In the case of cognac, it must be produced from specific grapes, twice distilled in copper pot stills and aged for at least two years in French oak barrels (which must be from either Limousin or Tronçais).
As with other spirit drinks such as whiskies, cognac is normally aged much longer than the required two years. Cognac, like other distilled drinks, may also be blended, and in such a case the age of the cognac is listed as the youngest component in the blend. Cognac also has a number of official quality grades, and is in addition classified by crus, which are geographic dominations where the grapes used are grown.
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