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 (-0.91%) fell by
2.7 %, while Remy Cointreau $RCO (-0.68%) lost 8 %.
The share price of LVMH $MC (-0.25%) 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.
