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China<\/strong> recently announced the launch of an antitrust investigation into imports of spirits from the European Union<\/strong>, in particular “brandy obtained by distilling grape wine in containers holding less than 200 liters”.<\/p>\n <\/p>\n This move follows a complaint lodged by the China Alcoholic Beverages Association<\/strong>, representing the local wine brandy industry.<\/p>\n <\/p>\n The consequences of this investigation, initiated by the Chinese Ministry of Commerce, have already been felt on the financial markets, with a significant fall in the values of spirits groups. On the Paris Bourse<\/strong> on Friday, January 5, Remy Cointreau<\/strong> was the biggest faller on the SBF 120<\/strong>, shedding 12.16%<\/strong>, while Pernod Ricard<\/strong>, less focused on wine spirits, dropped 5.48%<\/strong>. Luxury goods giant LVMH, which markets Hennessy cognac, also lost 2.21%<\/strong>.<\/p>\n <\/p>\n In London<\/strong>, the Diageo<\/strong> group, which specializes in spirits, was down 2.35%.<\/strong><\/p>\n <\/p>\n <\/p>\n The Chinese investigation comes against a backdrop of growing tensions between China and the European Union<\/strong>. China had adopted a similar approach in 2013<\/strong> when investigating wine imports from the EU<\/strong>, in response to proposed European tariffs on Chinese photovoltaic panels.<\/p>\n <\/p>\n Analysts believe that China is seeking to put pressure on the EU, particularly France, by targeting exports of brandy packaged in containers of less than 200 liters. China will import $1.57 billion<\/strong> worth of spirits distilled from grape wine in 2023, with France accounting for 99.8%<\/strong> of all EU brandy exports.<\/p>\n <\/p>\n China represents a crucial market for French spirits groups, with 10%<\/strong> of sales for Pernod Ricard and 30%<\/strong> for Remy Cointreau. However, companies are keeping a low profile in the face of this investigation. Remy Cointreau declined to comment, and Pernod Ricard and LVMH were not immediately available for comment.<\/p>\n <\/p>\n <\/p>\nWorsening diplomatic context<\/h2>\n
Experts unanimous<\/h2>\n
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