Tariffs Threaten Pernod Ricard's Global Spirits Sales

Pernod Ricard faces an annual 200 million euros loss due to tariffs imposed by China and potential tariffs by the United States. The company has revised its future outlook and implemented mitigation measures, including cost savings and supply chain adjustments, to combat the financial impact.

Tariffs from China and potential ones from the United States are poised to significantly harm Pernod Ricard's business, leading to an annual estimated loss of 200 million euros, according to the company's finance chief, Helene de Tissot.

Pernod's sales have already been affected by China's temporary tariffs on European brandy imports, impacting their Martell cognac brand. This situation has compelled Pernod to revise its financial outlook for 2025 and beyond. Additionally, the United States, under President Donald Trump, has threatened to impose 25% tariffs on goods from Mexico, Canada, and the European Union, affecting Pernod's products such as Jameson Irish whiskey and Codigo 1530 tequila.

Helene de Tissot indicated that a 10% U.S. tariff on EU shipments might result in a 200 million euros yearly impact, with Chinese duties on cognac contributing substantially. However, Pernod is offsetting around half of this impact with cost-saving strategies and adjustments across its supply chain in China and elsewhere.