and the tit for tat has started....read on...European Beverage...

and the tit for tat has started....read on...


European Beverage Stocks Fall After China Imposes Brandy Tariffs
Remy Cointreau fell as much as 7.7%, while Pernod Ricard was down about 3%. LVMH dropped more than 4%
By
Andrea Figueras
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Updated Oct. 8, 2024 3:53 am ET



European distiller stocks dropped after China said it would impose antidumping tariffs on brandy imported from the European Union, deepening tensions between the two trading powers.

Shares in Remy Cointreau RCO -8.19%decrease; red down pointing triangle, maker of Remy Martin cognac, fell as much as 7.7% in European early trading, while French peer Pernod Ricard RI -4.34%decrease; red down pointing triangle, which houses Martell liquor, was down about 3%. LVMH—home to Hennessy cognac—dropped more than 4%.

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Shares in British spirits maker Diageo and Italian Aperol maker Davide Campari-Milano CPR -1.49%decrease; red down pointing triangle also traded lower, falling more than 1%.

The Chinese commerce ministry said Tuesday that the tariffs would range from 30.6% to 39.0% and take effect on Friday, reversing a move in August, when it said it would temporarily hold back the measures despite finding evidence of dumping. The move comes after the European Union’s decision to impose tariffs on Chinese-made electric vehicles.

The Chinese government launched the antidumping investigation in January, a move that analysts and investors considered a source of concern for liquor makers, particularly for Remy Cointreau and Pernod Ricard as brandy accounts for a larger share of their sales compared with peers Diageo or Campari.

Dumping measures in China add to the sector’s woes as distillers attempt to navigate a slowdown in consumption after a boom during the pandemic.


Laters...