Pernod Ricard is not guilty of the dumping of brandy alleged by Chinese authorities, its finance boss has insisted.
“There is no dumping on the Martell brand. That is our strong belief,” Pernod Ricard director of finance and IT Hélène de Tissot told journalists in London on Thursday (5 September).
Pernod Ricard was co-operating with the Chinese Ministry of Commerce (Mofcom) as they investigated allegations that brandy from the EU was being sold in China for less than market value, de Tissot said.
Mofcom’s investigation began in January of this year and was due to conclude by July 2025, de Tissot said, adding that although Beijing has said it will not impose tariffs of up to 34.8% on brandy “for now”, the threat was something Pernod Ricard needed to remain alive to.
“This is something we are fully modelling for internally,” she said. “There’s a lot at stake in terms of what it could be relevant [for us] to do in terms of price increases and the impact on Chinese investments.”
Cognac and brandy producers were “very much mobilised” against the danger posed by tariffs and would seek to work with “key stakeholders” in China and the EU to seek to avoid their imposition, de Tissot said.
If tariffs did come to pass, Pernod Ricard was prepared to push through price increases on its brands to protect margins, she added.
“The cognac category is very aspirational,” she said. “We will have to adapt if the tariffs materialise.”
Disregarding any potential impact of tariffs, FY25 would remain “challenging” in China, de Tissot predicted, citing “consumer demand because of the macroeconomic environment” in the country. Sales in China fell by 10% in the year to 30 June 2024, Pernod Ricard revealed last week.
Also on Thursday, Pernod Ricard said it had scrapped a previously announced sponsorship deal with Paris St-Germain, following backlash from fans of rival French football club Marseille.
Supporters had threatened to boycott Pernod Ricard’s anise-flavored aperitif pastis Ricard – which has historical links to the city of Marseille – leading the spirits maker to backtrack on its agreement with PSG.
“For more than 90 years, Ricard’s history has been intertwined with Marseille, the city that saw the group’s birth, growth and inspiration,” CEO Alexandre Ricard said in a statement. “And this link is stronger than anything else. It is therefore a decision that comes from the heart that I am making today.”
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