Latest news with #PernodRicard
Reuters
a day ago
- Automotive
- Reuters
Europe Inc's trade deal relief tempered by tariff reality
LONDON, July 28 (Reuters) - European companies were on edge on Monday as corporate leaders tried to unpick the real impact of a hard-won U.S. trade deal and lamented a sharp jump in tariffs versus those in place before President Donald Trump's second term. The trade deal announced on Sunday imposes a 15% import tariff on most EU goods. After an initial rally on relief that some sort of deal had been reached, shares of carmakers and alcohol firms fell. Leading the way lower were BMW ( opens new tab, Volkswagen ( opens new tab, Mercedes-Benz ( opens new tab and Stellantis ( opens new tab, along with Pernod Ricard ( opens new tab and Anheuser-Busch InBev ( opens new tab, all down between 1-2%. The falls reflect how the deal is being seen as lopsided, more a win for U.S. President Donald Trump, as well as ongoing uncertainties about the fine print of the final agreement. The 15% rate is better than the 30% once threatened by Trump and will bring clarity for European makers of cars, planes and chemicals, but it's well above initial hopes of a zero-for-zero agreement and an average rate last year of around 2.5%. "The price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI, adding though that it could have been worse. "Those who expect a hurricane are grateful for a storm." The deal, which also includes $600 billion of EU investments in the United States and $750 billion of EU purchases of U.S. energy over Trump's second term, includes some exemptions, even if details are still to be ironed out. For carmakers, the 15% tariff is down from more than 25% under the global levy imposed by Trump in April. The EU is also cutting its tariff on U.S.-made cars to 2.5%, a senior European Commission official involved in the talks said. Car parts makers were amongst the strongest stock market performers. Valeo ( opens new tab was up around 4% while French supplier Forvia ( opens new tab, which also announced robust results earlier on Monday, was up over 10%. "Tariffs are lower than those imposed by the U.S. administration in recent months, and if it reduces volatility and uncertainty, it's better for all economic players," Forvia's CFO Olivier Durand said on an earnings call. Aircraft and aircraft parts will be exempt - good news for French planemaker Airbus ( opens new tab - as will certain chemicals, some generic drugs, semiconductor equipment, some farm products, natural resources and critical raw materials. Shares in pharmaceutical companies Sanofi ( opens new tab, Roche (ROG.S), opens new tab and Novo Nordisk ( opens new tab all edged up, while generics maker Sandoz (SDZ.S), opens new tab rose strongly. "It's definitely better than 200%. Most had 25% factored. But I don't think anyone believes it until it's signed," an industry source told Reuters, referring to previous threats from Trump to tax pharmaceutical imports. Shares in the world's biggest supplier of computer chip-making equipment ASML ( opens new tab also rose more than 4%, among the biggest gainers on the pan-European STOXX 600 (.STOXX), opens new tab index. Dutch brewer Heineken ( opens new tab cheered the deal, with CEO Dolf van den Brink welcoming the certainty it brought. The world's No.2 brewer sends beer, especially its namesake lager, to the U.S. from Europe and Mexico, and has also suffered from the indirect effect on consumer confidence in important markets like Brazil. The rate on spirits that could impact firms such as Diageo (DGE.L), opens new tab, Pernod Ricard and LVMH ( opens new tab is still being negotiated though. "It seems that in coming days there could be negotiations for certain agricultural products, zero for zero, which is what the European and U.S. sectors have been calling for," said Jose Luis Benitez, director of the Spanish Wine Federation. Benitez added that a 15% rate could put Europe at a disadvantage versus other wine exporting regions subject to 10% tariffs. "If there are any exceptions, we hope that the (European) Commission understands that wine should be one of them." Lamberto Frescobaldi, the president of Italian wine body UIV, said on Sunday that 15% tariffs on wine would result in a loss of 317 million euros ($372.63 million) over the next 12 months, though the group was waiting to see the final deal text. Others said that the agreement- which followed on the heels of a similar one with Japan - helped bring greater clarity for company leaders, but could still hurt European firms. "While this agreement puts an end to uncertainty, it poses a significant threat to the competitiveness of the French cosmetics industry," said Emmanuel Guichard, secretary general of French cosmetics association FEBEA, which counts L'Oreal ( opens new tab, LVMH ( opens new tab and Clarins among its members. ($1 = 0.8507 euros)
Japan Times
a day ago
- Business
- Japan Times
U.S. alcohol sector prepares to fight back against buzzy cannabis drinks
Top alcohol makers have been sitting on the sidelines of a cannabis beverage boom, watching brands in the fast-growing category like Cann and Wynk make deals with beer and booze distributors and gain valuable space on liquor store shelves. Now some alcohol companies, seeing their sales falter, are laying the groundwork to potentially enter the lucrative but risky market, a dozen founders of cannabis brands, ingredients suppliers and drinks manufacturers said. Drinks containing THC, the mood-altering ingredient in marijuana, are restricted to licensed dispensaries in 24 U.S. states where recreational use of pot is legal. But small amounts of THC can also be extracted from hemp, a crop that's related to marijuana but is legal federally. Beverages containing THC derived from hemp can be sold in many liquor shops, convenience stores and supermarkets. That's where Big Alcohol sees opportunity, despite some companies having been burned by past cannabis investments. Corona brewer Constellation Brands has been internally researching hemp-based cannabis drinks to weigh its next steps, a source familiar with the company's thinking said. Absolut Vodka distiller Pernod Ricard has met with Brez, maker of drinks with THC derived from hemp, as recently as last month to discuss a possible investment, Brez's founder Aaron Nosbisch said. "They did not invest now but are circling," Nosbisch said. Corona brewer Constellation Brands has been internally researching hemp-based cannabis drinks to weigh its next steps. | Reuters Pernod declined to comment on the meeting. Constellation Brands said it does not comment on rumors and speculation. Alcohol makers are still suffering a hangover following America's pandemic drinking binge, when sales spiked as cash-flush consumers splurged on pricey bottles of liquor for their homes, and then rushed back to bars when lockdown restrictions lifted. Alcohol sales have been falling ever since as inflation and interest rates rose and wallets became stretched. The companies also now face growing warnings from public health authorities who say drinking even small amounts of alcohol is associated with at least seven types of cancer. Overall U.S. beer volumes fell nearly 6% through May of this year, according to the Beer Institute. Volumes of spirits and wine sold in the same time period have declined by 5.6% and 9%, respectively, according to the Wine & Spirits Wholesalers of America. In a sign of tumult in the industry, the CEO of the world's biggest alcohol maker, Diageo, stepped down last week as the company struggles to revive growth. But hemp-based drinks are expanding fast. The market for drinks infused with THC from hemp is projected to top $1 billion in sales this year, according to market research firm Euromonitor, and climb past $4 billion in 2028. Molson Coors CEO Gavin Hattersley said in January he'd be naive to say THC beverages aren't having an effect "at least in a small way." Tilray Brands, the fourth-largest U.S. craft brewer with brands including Montauk and Shock Top, is selling its new hemp-derived THC seltzers through its beer distributors such as United Distributors in Georgia, executives said in an interview. The company's THC drinks are for sale in 13 states. "There's not a real leader that's taken a hold of the (market) so far, and that's what we look to do," Tilray's CEO Irwin Simon said earlier this year. Others, including Heineken's Lagunitas brand and Pabst Blue Ribbon, the fifth-largest U.S. brewer, have lent their names to THC seltzers for sale in dispensaries in California. Lagunitas is looking to grow distribution of its THC seltzer, potentially using hemp, to other states, a representative from Cannacraft, its ingredient supplier, said. A spokesperson for Lagunitas said it has no immediate plans to expand, but monitors market development and looks for opportunities as consumer tastes and regulations change. Boston Beer, the maker of Samuel Adams, is one of the brewers with the clearest path to eventually enter the U.S. cannabis drinks market, although it has not provided a time frame for doing so. The company is already selling its Teapot brand of THC-infused tea in Canada where weed is legal, and in the last year tested a potential U.S. version made from THC derived from hemp. To test the reformulated product, a panel of trained sensory experts sampled Teapot with both THC from hemp and marijuana, and could not taste a difference, said the company's head of cannabis, Paul Weaver. "This is a source of growth for our organization, flat out," Weaver said. Big Alcohol is treading carefully in cannabis drinks because state and federal regulations have shifted, and could change again, said five executives at ingredients suppliers and THC beverage brands. California, which has legal weed, banned hemp-based drinks last year to try to prevent children from consuming them. Other states have introduced special taxes or restricted sales, ambiguity that has held alcohol companies back from entering the market. Sen. Mitch McConnell, who helped first legalize hemp in 2018 to support farmers in his home state of Kentucky, in July introduced a provision in a government spending bill that could ban intoxicating products using the plant. McConnell wrote in an op-ed published in the Louisville Courier Journal on July 17 that his efforts are aimed at keeping THC gummies that look like familiar candies out of the hands of children. He did not provide comment beyond the op-ed. Big brewers have been burned by past cannabis investments. In 2022, the biggest U.S. brewer Anheuser-Busch inBev exited a deal with Tilray to research cannabis drinks in Canada. The same year, Molson Coors shuttered its U.S. business selling beverages infused with CBD, a compound in marijuana and hemp that does not have psychoactive effects, citing an uncertain regulatory environment. Constellation Brands restructured its investment in Canadian cannabis company Canopy Growth last year after poor sales. Now, however, hemp-based THC drinks are sold widely. Beyond beer's declining sales, brewers face an additional squeeze from tariffs, which threaten to push up prices for imported drinks, and Hispanic consumers, who are staying home due to fears of U.S. immigration enforcement. Liquor stores are embracing the buzzy beverages to boost their margins as the drinks, typically more expensive than a six-pack of beer, start to outsell other types of alcohol. Jon Halper, CEO of Minnesota liquor store chain Top Ten Liquors, said in June that THC beverages now make up 15% of his business after the company introduced them two years ago. By next year, they could grow to rival wine, currently in the mid-20% of his sales, he said. The drinks take shelf space mostly from beer because they are in coolers, Halper said. The margins on cannabis beverages are higher than those for beer and spirits, helping his firm offset softening alcohol sales. Charleston, South Carolina-based Southern Horizon Logistics, a sister company of Budweiser distributor Southern Crown Partners, is now selling more hemp-based drinks than wine and spirits, said Justin Ashby, the company's chief administrative officer. Ryan Moses, CEO of Nashville, Tennessee-based beer, wine and spirits distributor Best Brands, said that growth from THC-infused drinks has helped offset flat and declining alcohol sales. Instead of possible layoffs, Moses has been able to re-allocate employees to the new category. "It could be as big as the other categories five to 10 years from now," Moses said. Consumers like Josh Goldberg, 39, of Lindenhurst, New York, are also trading out beer and tequila for THC seltzers. Goldberg made the switch almost two years ago, and hasn't had a drink since. "It replaces the physical act of drinking with drinking something else," Goldberg said. Halper, the owner of Minnesota liquor stores, said the customers buying THC-infused drinks tend to skew female and over the age of 35. "The soccer mom has really embraced the category in a big way," Halper said.
Korea Herald
2 days ago
- Business
- Korea Herald
Pernod Ricard Korea names company veteran as new CEO
Pernod Ricard Korea, the local unit of the French spirits giant, announced Monday the appointment of Fadil Tasgin as its new CEO, bringing on a company veteran who most recently oversaw key growth markets in Asia. With over three decades of experience in the consumer goods and beverage industries, Tasgin pledged to enhance brand experiences and strengthen Pernod Ricard Korea's market position, while maintaining a strong focus on consumer-centric marketing. 'I am well aware of the Korean market's tremendous potential, as well as the high expectations of its consumers,' Tasgin said. 'With a strong portfolio of premium and prestige brands, we look to drive long-term growth by meeting evolving consumer preferences." Since joining Pernod Ricard in 2012 as head of sales in Turkey, Tasgin has taken on a series of international leadership roles. These include CEO of Pernod Ricard Austria in 2019, CEO of Pernod Ricard Philippines in 2021, and, most recently, CEO overseeing both the Philippines and Indonesia. In his new role, effective this September, Tasgin will relocate to Seoul and oversee both internal and external operations for the Korean unit. Tasgin began his career at Unilever, where he held several senior roles in Turkey. He later joined Danone, spending eight years leading national sales operations, trade marketing and business development.
Business Insider
3 days ago
- Business
- Business Insider
Kepler Capital Sticks to Their Buy Rating for Pernod Ricard (0HAT)
In a report released on July 24, Richard Withagen from Kepler Capital maintained a Buy rating on Pernod Ricard, with a price target of €117.00. The company's shares closed last Thursday at €97.36. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Withagen is a 2-star analyst with an average return of 0.0% and a 48.66% success rate. Withagen covers the Consumer Defensive sector, focusing on stocks such as Diageo, Davide Campari-Milano SpA, and Remy Cointreau. In addition to Kepler Capital , Pernod Ricard also received a Buy from Bernstein's Trevor Stirling in a report issued on July 22. However, on July 14, UBS maintained a Hold rating on Pernod Ricard (LSE: 0HAT).
Reuters
4 days ago
- Business
- Reuters
Pernod Ricard sells Imperial Blue whisky to India's Tilaknagar for $486 million
PARIS, July 23 (Reuters) - France's Pernod Ricard ( opens new tab has agreed to sell its Imperial Blue whisky brand to India's Tilaknagar Industries ( opens new tab for an enterprise value of 412.6 million euros ($486 million), as the spirits group boosts its focus on premium labels. Pernod Ricard sold 22.4 million 9 litre cases of Imperial Blue whisky in the fiscal year ended March 2025 across India and other markets. Its sale of the brand includes a 28 million euro deferred payment due four years after the deal closes. The world's second-largest Western spirits maker by revenue after Diageo (DGE.L), opens new tab on Wednesday said the deal would be "immediately and meaningfully accretive" to Pernod Ricard India's margin and sales growth upon closing. The French group has been streamlining its business and focusing on its core portfolio of pricey, global brands amid a sector-wide downturn in sales. Chairman and CEO Alexandre Ricard said the sale would "sharpen our focus on more profitable and faster growing brands in India, as in the rest of the world". Jean Touboul, CEO of Pernod Ricard India, said the deal would notably allow Pernod Ricard to allocate resources more effectively towards high-growth brands in India such as Royal Stag and Blenders Pride, as well as international brands like Chivas, Jameson, Absolut and Ballantine's. Pernod Ricard sees India, the group's second-largest market after the United States, as key to future growth. Alcohol sales in India are projected to hit $61.35 billion in fiscal 2025–26, showed data from analytics firm CRISIL. Imperial Blue, a leading mass-market whisky, competes with United Spirits' McDowell's No.1 in India. Pernod Ricard regards it as a local-value brand, less central than its premium global labels like Chivas Regal. For Tilaknagar Industries, a dominant player in India's brandy market with Mansion House, the deal marks a strategic shift into whisky - a faster-growing, higher-margin segment. Earlier this month, Reuters reported that Inbrew Beverages and Tilaknagar Industries each sought to bid around $500 million for Imperial Blue. Global spirits makers are reworking strategies as post-pandemic liquor demand slumps amid inflation, interest rate hikes, tariff risk and shifting consumer habits. ($1 = 0.8491 euros)
