Latest news with #RemyCointreau
Bloomberg
3 days ago
- Business
- Bloomberg
French Cognac Makers Rise on Reported Deal to End China Spat
Shares of Pernod Ricard SA and Remy Cointreau SA rose after Reuters reported the cognac makers had agreed a tentative deal with the Chinese government to end a months-long trade spat. France's biggest cognac makers had been unable to sell through China 's duty-free channels since December following an investigation into allegations that producers were dumping the spirit into the market. The ban was temporarily lifted on April 5, with the outcome of the probe pushed back to July.
Yahoo
3 days ago
- Business
- Yahoo
China's tariffs on French cognac reportedly depend on EV deal
-- French cognac producers have reached a provisional agreement on minimum import prices for the Chinese market, but China will only finalize the deal if progress is made in a dispute over European Union tariffs on Chinese electric vehicles, according a Reuters report on Friday. Negotiations between the two sides have continued for months while cognac sales in China, the most valuable market for the spirit, have declined. The agreement would benefit companies like Pernod Ricard (EPA:PERP), Remy Cointreau (EPA:RCOP), and LVMH, which have also experienced slower sales in the United States, the largest cognac market by volume, due to inflation and economic uncertainty. If no agreement is reached by July 5, the deadline set by China to complete an anti-dumping investigation into European brandy, China could make permanent its temporary customs duties of up to 39% that are currently in place. The report indicated that the provisionally agreed minimum prices would be "much better" than continuing to pay the existing duties. During a June 12 web briefing for cognac makers, lawyers working for the BNIC industry body outlined the minimum import prices that form part of the tentative deal. According to presentation slides, VS (Very Superior), the least expensive cognac category, would have a minimum import price of 46 yuan ($6.39) per liter. High-end "Extra Old" (XO) cognac would cost 424 yuan per liter, while the premium XXO category would start at 613 yuan ($85) per liter. For major houses like Hennessy, Martell, and Remy Martin, minimum import prices would be higher than for smaller producers but still considerably below current levels. Many companies have reportedly committed to the prices and are waiting for Chinese authorities to approve them. The report added that Beijing has linked finalizing the cognac deal to movement on the electric vehicle tariff dispute with the European Union. Related articles China's tariffs on French cognac reportedly depend on EV deal Microsoft and Nvidia lead the charge toward $4 trillion market cap: Wedbush TotalEnergies acquires 25% stake in Block 53 offshore Suriname from Spain's Moeve Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Beijing ties cognac deal to EV tariff talks with Europe
By Tassilo Hummel and Julia Payne PARIS/BRUSSELS (Reuters) -France's cognac makers have reached a tentative deal on minimum import prices for the Chinese market, but China will finalise it only if progress is made in a separate row over EU tariffs on Chinese-made EVs, five sources familiar with the matter said. Talks between the two sides have dragged on for months, while sales of cognac in China, the world's most valuable market for the spirit, have shrunk. If finalised, the deal would bring relief to groups including Pernod Ricard, Remy Cointreau and LVMH, whose sales have also slowed in the United States, the world's biggest cognac market by volume, as a result of inflation and economic uncertainty. In the absence of an agreement by a July 5 deadline set by China to complete an anti-dumping investigation into European brandy, most of it cognac, China could make permanent its temporary customs duties of up to 39% that are already in place. The provisionally agreed minimum prices for brandy imports would be "much better" than continuing to pay the existing duties, one of the sources said. In a June 12 web briefing for cognac makers, lawyers working for the BNIC industry body detailed minimum import prices described as part of the tentative deal obtained after the lengthy technical negotiations, presentation slides seen by Reuters showed. VS, or Very Superior, the cheapest cognac category, would have a minimum import price of 46 yuan ($6.39) per litre, the slides showed. High-end "Extra Old" cognac, known as XO, would cost 424 yuan per litre, with the XXO category, where retail prices reach thousands of dollars per bottle, costing from 613 yuan ($85) per litre. For the biggest houses Hennessy, Martell and Remy Martin, two of the sources said minimum import prices would be higher than for smaller producers, but still well below current levels. One industry insider said his company has committed to the prices detailed in the presentation, and was waiting for the Chinese authorities "to sign them off". Three other sources at leading Cognac makers said their companies had also signed up to the minimum prices and awaited Beijing's response. They and a fourth industry source said Beijing had linked finalising the cognac deal to movement on the electric vehicle dossier. In all Reuters spoke to five industry sources. All of them asked not to be named because of the sensitivity of the issue. The BNIC declined to comment on the prices, saying they were confidential. China's Commerce Ministry did not respond to questions sent by Reuters. A French government source told Reuters Chinese officials have consistently linked the cognac and electric vehicles dossiers. The source said the French government had refused to make the connection, but was cautiously optimistic a formal deal can be struck ahead of the July 5 deadline. A person familiar with EU-China trade talks also confirmed China had tied signing off the cognac agreement to the electric vehicle talks. COLLATERAL DAMAGE? France's cognac makers have complained they are collateral damage in the broader trade row between Brussels and Beijing after France was vocal in its support for tariffs on China-made EVs. China imposed temporary duties on cognac following a brandy investigation launched last year after the EU accused Beijing of unfair public subsidies for China's auto industry and imposed duties on imports of Chinese-made EVs. Shares in Remy Cointreau and Pernod Ricard are down 35% and 33% respectively since China announced temporary import charges last October. Monthly cognac exports to China have fallen by as much as 70% due to the trade dispute, according to BNIC data. Reuters exclusively reported this month that cognac makers had offered minimum prices to Chinese authorities to try to break the deadlock. Beijing wants the EU to replace its import tariffs on Chinese EVs with minimum price commitments similar to those proposed for cognac, the sources said. China has said talks on EVs have entered a final stage, but EU officials say progress has been limited. The European Commission did not respond when asked if it supported the provisional agreement on Cognac. EU leaders will travel to Beijing for a summit to mark 50 years of EU-Chinese relations on July 24-25, where officials have said trade will be a priority. French trade minister Laurent Saint-Martin told producers during a visit to the Cognac region in southwestern France this week that talks on minimum import prices were "on the right track" but had not reached a conclusion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-Beijing ties cognac deal to EV tariff talks with Europe
By Tassilo Hummel and Julia Payne PARIS/BRUSSELS (Reuters) -France's cognac makers have reached a tentative deal on minimum import prices for the Chinese market, but China will finalise it only if progress is made in a separate row over EU tariffs on Chinese-made EVs, five sources familiar with the matter said. Talks between the two sides have dragged on for months, while sales of cognac in China, the world's most valuable market for the spirit, have shrunk. If finalised, the deal would bring relief to groups including Pernod Ricard, Remy Cointreau and LVMH, whose sales have also slowed in the United States, the world's biggest cognac market by volume, as a result of inflation and economic uncertainty. In the absence of an agreement by a July 5 deadline set by China to complete an anti-dumping investigation into European brandy, most of it cognac, China could make permanent its temporary customs duties of up to 39% that are already in place. The provisionally agreed minimum prices for brandy imports would be "much better" than continuing to pay the existing duties, one of the sources said. In a June 12 web briefing for cognac makers, lawyers working for the BNIC industry body detailed minimum import prices described as part of the tentative deal obtained after the lengthy technical negotiations, presentation slides seen by Reuters showed. VS, or Very Superior, the cheapest cognac category, would have a minimum import price of 46 yuan ($6.39) per litre, the slides showed. High-end "Extra Old" cognac, known as XO, would cost 424 yuan per litre, with the XXO category, where retail prices reach thousands of dollars per bottle, costing from 613 yuan ($85) per litre. For the biggest houses Hennessy, Martell and Remy Martin, two of the sources said minimum import prices would be higher than for smaller producers, but still well below current levels. One industry insider said his company has committed to the prices detailed in the presentation, and was waiting for the Chinese authorities "to sign them off". Three other sources at leading Cognac makers said their companies had also signed up to the minimum prices and awaited Beijing's response. They and a fourth industry source said Beijing had linked finalising the cognac deal to movement on the electric vehicle dossier. In all Reuters spoke to five industry sources. All of them asked not to be named because of the sensitivity of the issue. The BNIC declined to comment on the prices, saying they were confidential. China's Commerce Ministry did not respond to questions sent by Reuters. A French government source told Reuters Chinese officials have consistently linked the cognac and electric vehicles dossiers. The source said the French government had refused to make the connection, but was cautiously optimistic a formal deal can be struck ahead of the July 5 deadline. A person familiar with EU-China trade talks also confirmed China had tied signing off the cognac agreement to the electric vehicle talks. COLLATERAL DAMAGE? France's cognac makers have complained they are collateral damage in the broader trade row between Brussels and Beijing after France was vocal in its support for tariffs on China-made EVs. China imposed temporary duties on cognac following a brandy investigation launched last year after the EU accused Beijing of unfair public subsidies for China's auto industry and imposed duties on imports of Chinese-made EVs. Shares in Remy Cointreau and Pernod Ricard are down 35% and 33% respectively since China announced temporary import charges last October. Monthly cognac exports to China have fallen by as much as 70% due to the trade dispute, according to BNIC data. Reuters exclusively reported this month that cognac makers had offered minimum prices to Chinese authorities to try to break the deadlock. Beijing wants the EU to replace its import tariffs on Chinese EVs with minimum price commitments similar to those proposed for cognac, the sources said. China has said talks on EVs have entered a final stage, but EU officials say progress has been limited. The European Commission did not respond when asked if it supported the provisional agreement on Cognac. EU leaders will travel to Beijing for a summit to mark 50 years of EU-Chinese relations on July 24-25, where officials have said trade will be a priority. French trade minister Laurent Saint-Martin told producers during a visit to the Cognac region in southwestern France this week that talks on minimum import prices were "on the right track" but had not reached a conclusion. Sign in to access your portfolio
Reuters
3 days ago
- Business
- Reuters
Exclusive: Beijing ties cognac deal to EV tariff talks with Europe
PARIS/BRUSSELS, June 27 (Reuters) - France's cognac makers have reached a tentative deal on minimum import prices for the Chinese market, but China will finalise it only if progress is made in a separate row over EU tariffs on Chinese-made EVs, five sources familiar with the matter said. Talks between the two sides have dragged on for months, while sales of cognac in China, the world's most valuable market for the spirit, have shrunk. If finalised, the deal would bring relief to groups including Pernod Ricard ( opens new tab, Remy Cointreau ( opens new tab and LVMH ( opens new tab, whose sales have also slowed in the United States, the world's biggest cognac market by volume, as a result of inflation and economic uncertainty. In the absence of an agreement by a July 5 deadline set by China to complete an anti-dumping investigation into European brandy, most of it cognac, China could make permanent its temporary customs duties of up to 39% that are already in place. The provisionally agreed minimum prices for brandy imports would be "much better" than continuing to pay the existing duties, one of the sources said. In a June 12 web briefing for cognac makers, lawyers working for the BNIC industry body detailed minimum import prices described as part of the tentative deal obtained after the lengthy technical negotiations, presentation slides seen by Reuters showed. VS, or Very Superior, the cheapest cognac category, would have a minimum import price of 46 yuan ($6.39) per litre, the slides showed. High-end "Extra Old" cognac, known as XO, would cost 424 yuan per litre, with the XXO category, where retail prices reach thousands of dollars per bottle, costing from 613 yuan ($85) per litre. For the biggest houses Hennessy, Martell and Remy Martin, two of the sources said minimum import prices would be higher than for smaller producers, but still well below current levels. One industry insider said his company has committed to the prices detailed in the presentation, and was waiting for the Chinese authorities "to sign them off". Three other sources at leading Cognac makers said their companies had also signed up to the minimum prices and awaited Beijing's response. They and a fourth industry source said Beijing had linked finalising the cognac deal to movement on the electric vehicle dossier. In all Reuters spoke to five industry sources. All of them asked not to be named because of the sensitivity of the issue. The BNIC declined to comment on the prices, saying they were confidential. China's Commerce Ministry did not respond to questions sent by Reuters. A French government source told Reuters Chinese officials have consistently linked the cognac and electric vehicles dossiers. The source said the French government had refused to make the connection, but was cautiously optimistic a formal deal can be struck ahead of the July 5 deadline. A person familiar with EU-China trade talks also confirmed China had tied signing off the cognac agreement to the electric vehicle talks. France's cognac makers have complained they are collateral damage in the broader trade row between Brussels and Beijing after France was vocal in its support for tariffs on China-made EVs. China imposed temporary duties on cognac following a brandy investigation launched last year after the EU accused Beijing of unfair public subsidies for China's auto industry and imposed duties on imports of Chinese-made EVs. Shares in Remy Cointreau and Pernod Ricard are down 35% and 33% respectively since China announced temporary import charges last October. Monthly cognac exports to China have fallen by as much as 70% due to the trade dispute, according to BNIC data. Reuters exclusively reported this month that cognac makers had offered minimum prices to Chinese authorities to try to break the deadlock. Beijing wants the EU to replace its import tariffs on Chinese EVs with minimum price commitments similar to those proposed for cognac, the sources said. China has said talks on EVs have entered a final stage, but EU officials say progress has been limited. The European Commission did not respond when asked if it supported the provisional agreement on Cognac. EU leaders will travel to Beijing for a summit to mark 50 years of EU-Chinese relations on July 24-25, where officials have said trade will be a priority. French trade minister Laurent Saint-Martin told producers during a visit to the Cognac region in southwestern France this week that talks on minimum import prices were "on the right track" but had not reached a conclusion.
