(BFM Stock Exchange) – The courses of the two groups of spirits accentuated their withdrawal after the French Minister of the Economy, said he had not found common ground on cognac exports to China.

Very sensitive to political decisions, the groups of spirits are removing on the Paris Stock Exchange. Rémy Cointreau gives 4% and Pernod Ricard lost 2.90% this Thursday, May 15, in the early afternoon.

The actions of the two companies have dropped down after the French Minister Eric Lombard said that negotiations with his Chinese counterpart He Lifeng are at a standstill in the subject of European water-to-life rights.

“The economic dialogue, at this stage, did not allow a final solution to this litigation, but I know, however, for having spoken at length with its excellence he Lifeng that the door of the discussion remains open,” said Éric Lombard quoted by AFP.

A blow for the Cognac sector

This news is clearly bad for the Cognac sector, which has resumed hope in recent months. At the end of March, the Minister of Foreign Affairs, Jean-Noël Barrot, had mentioned a postponement of three months by China of additional customs of customs on the Cognac sector.

Recall that in January 2024, MOFCOM, the Chinese Ministry of Commerce, had opened an investigation into European brandies, such as Cognac and Armagnac. In October, MOFCOM then asked importers to deposit a deposit with Chinese customs from October 11, 2024. In retaliation for the surcharging of the import of electric vehicles made in China.

Analyst at Oddo BHF, Pierre Tegner had indicated last year that Cognac in China represented around 25% of income from Rémy Cointreau and 8% at 9% of those of Pernod Ricard. “The global cognac market represents $ 50 billion, including 20% ​​in China in volume and 23% in value. If China decided to implement pricing barriers, the potential of geography would be heavily penalized,” said Sarah Thiron of TP ICAP Midcap.