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Price losses for French spirits producers: LVMH hit particularly hard by anti-dumping measures in China


French spirits producers saw their share prices fall on Tuesday morning after China announced provisional anti-dumping measures against spirits imports from the European Union.


The shares of Pernod Ricard $RI (-2.05%) fell by

2.7 %, while Remy Cointreau $RCO (-1.75%) lost 8 %.

The share price of LVMH $MC (-3.23%) the producer of Hennessy cognac, fell by 4.3%. This was part of a wider decline in luxury stocks, with traders citing the lack of fresh impetus from China as the reason.


LVMH generates around 30% of its total sales in China, which is one of the most important emerging markets. In the luxury segment, Chinese demand is therefore crucial for the company's growth. The spirits division, which includes brands such as Hennessy-Cognac, accounts for around 10% of LVMH's total sales, with the Asian market, particularly China, accounting for a significant proportion of these sales.


https://de.marketscreener.com/kurs/aktie/LVMH-4669/news/Aktien-franzosischer-Spirituosenhersteller-fallen-wegen-Chinas-Antidumpingma-nahmen-48021035/

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Phew, yes, this luxury party by Arnault had to come to an end, the dependence on consumers who cannot afford luxury goods (aspirational customers) is another problem that has been downplayed for years. Since Corona is over, there are other ways to spend money again, especially for these people.

https://www.scmp.com/magazines/style/luxury/article/3230355/how-lvmh-plans-reattract-aspirational-luxury-shoppers-us-consumer-thinking-twice-about-spending-amid
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I have a few stock of Pernod Ricard, and I know I m losing a small bit 😅 because I have few of them and I hope they will go up, I think what China is trying to do they will get in return in the next coming months.
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Which alcohol do you consume the most?
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Thanks for the info, the current back & forth at $MC is getting on my nerves a bit 😄💯👌
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