China to impose anti-dumping measures on EU brandy, drink stocks slump
Remy Cointreau
€60.73
13:10 08/10/24
Shares of European drinks makers slumped on Tuesday after China said it would impose provisional anti-dumping tariffs on brandy imported from the European Union this week.
Beverages
20,956.85
13:14 08/10/24
CAC 40
7,529.09
13:15 08/10/24
cac mid & small
13,153.06
13:15 08/10/24
Diageo
2,546.00p
13:15 08/10/24
DJ EURO STOXX 50
4,969.71
23:59 07/10/24
FTSE 100
8,210.70
13:15 08/10/24
FTSE 350
4,529.09
13:15 08/10/24
FTSE All-Share
4,486.79
13:15 08/10/24
Pernod Ricard
€126.76
13:14 08/10/24
According to a notice from the Ministry of Commerce, Chinese customs officials will collect security deposits from companies that sell brandy that originates from the EU. The deposit amount will be between 30.6% to 39% of the total value.
Shares in Remy Cointreau, Pernod Ricard and Diageo were all hit, down 8.6%, 4.3% and 1.8%, respectively, at 1020 BST.
Russ Mould, investment director at AJ Bell, said: "Anti-dumping is an import duty charged in addition to normal customs duty and can be levied when a foreign company sells an item significantly below their normal price.
"Importers of brandy coming to China from the EU will now have to put down security deposits of up to 39% of the import value, with it unclear as to when the deposits will be returned.
"That could push up the price of such products for drinkers, and potentially lead to reduced sales of EU-originated brandy if the consumer seeks cheaper alternatives."