China has reportedly postponed concluding its anti-dumping investigation into EU brandy products.
According to reports from news outlets Bloomberg and Reuters on Friday (28 March), France’s Foreign Minister Jean-Noël Barrot told journalists during a trip to China that conclusion of the probe had been delayed three months.
“This measure should give us a few months’ breathing space with the reopening of duty-free sales of Cognac and Armagnac, which represent a significant volume of sales for some brands,” he said in emailed comments to Bloomberg.
In January, China’s Ministry of Commerce announced it had extended its anti-dumping probe of brandy originating from the EU by three months.
The investigation, launched on 5 January 2024 and initially due to last one year, was expected to be completed by 5 April.
When contacted by Just Drinks, France’s national Cognac trade body Bureau National Interprofessionnel du Cognac (BNIC) said it had noted the announcement to the press.
It added: “We need to study in more detail the feedback we will receive from the French government very shortly.”
Cognac makers, such as Pernod Ricard, have been unable to sell in duty free channels for some time.
In February, following the early release of its first-half results, CFO Helene de Tissot referred to the suspension in a call with analysts, explaining that the company had seen a “worsening situation” in China linked to “technical suspension of the duty-free regime impacting travel retail [in] Asia. To be more specific, China duty free and Cognac in China duty free”.
“China ‘delays conclusion of Cognac probe’” was originally created and published by Just Drinks, a GlobalData owned brand.
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