Shares of French spirits producers Pernod Ricard (EU:RI) and Rémy Cointreau (EU:RCO) declined on Wednesday after fresh data confirmed another year of falling wine and spirits exports, while China hinted at possible additional trade action targeting European alcoholic beverages.
New figures showed that France’s wine and spirits exports dropped for a third consecutive year, with volumes falling to their lowest level in more than 20 years. Shipments to China recorded a steep decline, and exports to the United States also weakened.
Yuyuan Tantian – a social media account linked to Chinese state broadcaster CCTV – reported that China could open investigations into French wine or introduce “reciprocal tariffs” on certain EU goods if France urges the European Union to impose new tariffs on Chinese imports.
The comments followed the publication of a French government policy paper on Monday suggesting the EU consider a blanket 30% tariff on Chinese goods or a 30% depreciation of the euro against the renminbi as a response to rising imports.
Beijing has already initiated anti-dumping probes into European brandy, including products shipped by Pernod Ricard and Rémy Cointreau. Earlier stages of the investigation saw provisional duties applied to selected European spirits.
France remains the top exporter of cognac to China, with the country representing a key destination for its high-end spirits sales.
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