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Pernod Ricard has minimize its gross sales steering due to uncertainty over tariffs and a slowdown in China, the place authorities anti-dumping measures have hit demand for its cognac model Martell.
The French spirits group, whose manufacturers additionally embody Absolut Vodka and Havana Membership rum, stated it was anticipating a “low single-digit” fall in natural gross sales this yr, having beforehand forecast a return to development.
Pernod Ricard additionally forecast gross sales would develop by 3-6 per cent between 2027 and 2029, down from earlier steering of 4-7 per cent, because it warned that “extraordinary trade tensions” had been weighing on efficiency.
The corporate stated natural gross sales fell 4 per cent within the six months to December, consistent with analyst expectations, with performances in some rising markets offsetting the “declining but improving US” and a “very weak China”.
US President Donald Trump’s threatened tariffs on imports from Mexico, Canada and China have left corporations scrambling to arrange. Spirits group Diageo on Tuesday scrapped its personal gross sales development goal, blaming uncertainty over US tariffs and weak demand in key markets.
Pernod stated it anticipated its efficiency in 2026 to be “conditional on the challenges posed by the global tariff environment”.
Gross sales in China fell 25 per cent in its first half, pushed by falling gross sales of Martell, following “ongoing challenging macroeconomic environment and weak consumer demand”, the corporate stated on Thursday.
Final October, China introduced it might impose anti-dumping measures on imports of cognac from France, in retaliation towards the EU imposing larger tariffs on Chinese language electrical automobiles.
Pernod, whose manufacturers additionally embody Jameson whiskey, stated the state of affairs for cognac had “further deteriorated” following the suspension of the duty-free regime on cognac due to the anti-dumping measures, which started in December.
