Pernod Ricard, LVMH, Rémy Shares Slip Amid China Anti-Dumping Probe Targeting Cognac

Chinese authorities have started an anti-dumping probe against European brandy imports, escalating the ongoing trade dispute between the EU and China. The move, which primarily impacts France and the Cognac trade, has caused shares in spirits companies like Pernod Ricard, LVMH, and Rémy Cointreau to drop, as China is a major market with Cognac as one of the key imports to the Asian nation.

The investigation kicked off due to a complaint filed by the China Alcoholic Beverage Association and will focus on brandies imported to the country in containers of 200 liters or less. On paper, the dispute was filed on behalf of China’s domestic brandy-makers, though EU companies suspect that this is merely an escalation of a trade dispute between the regions, with the EU opening an anti-dumping probe into Chinese biodiesel in December.

According to Chinese customs data, the nation imported over $1.5 billion in brandy in 2023, with French exports accounting for nearly 100% of brandies. Following the news of the probe, shares in Rémy Cointreau dropped more than 10%, shares in Pernod fell nearly 5%, and LVMH took a nearly 2% hit. Campari—which recently purchased Courvoisier from Beam Suntory—also saw a 2% decline. China is the second-largest export market for Cognac worldwide, after the U.S.—Shane English

Tagged : China, Cognac, Hennessy, Pernod Ricard, Remy Martin

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