European Spirits Makers Surge After China Pauses Measures Against Brandy Imported From EU

By Andrea Figueras

Shares in European spirits makers jumped after China said it would temporarily hold back on dumping measures against brandy imported from the European Union, easing a major concern for investors on the potential impact on sales in a key market.

The decision to put a pause on punitive measures comes despite preliminary findings of an investigation into European wine makers that concluded that brandy imports from the bloc had hurt local competitors, the Chinese commerce ministry said Thursday.

In January, the Chinese government launched an anti-dumping probe into brandy imported from the EU in an escalation of trade tensions between the two regions, raising concerns about the potential hit to spirits brands.

Shares in Pernod Ricard and Remy Cointreau were up by 4.2% and 7.8%, respectively, in European morning trading. Shares in British spirits maker Diageo, which counts Johnnie Walker among its brands, and Italian Aperol maker Davide Campari-Milano also benefited from the move, rising by 0.5% and 1.8%, respectively.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

August 29, 2024 05:09 ET (09:09 GMT)

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