French Wine and Champagne
Note: This is a daily stock update and the information stands true as of 20/01/26, 09:00 CET.
Company Update:
Expert Opinion:
Obviously, this is bad news for the sector which is extremely sensitive to tariffs. More importantly, there are questions regarding the long-term trend regarding consumption of alcohol. Indeed, the trend seems to be increasing among the millennials regarding lower consumption. Furthermore, the spreading usage of weight loss drugs such as Wegovy or Zepbound seems to have a material impact on the desire to consume alcohol. Our expert is increasingly concerned that despite the massive drop in share price of the likes of Remy, Diageo or Pernod, the fundamental value of those groups will have to be reassessed. He would stay away from those names for the time being.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
According to Il Sole 24 Ore, Il Corriere della Sera, and Le Figaro, Donald Trump is reportedly considering the imposition of 200% tariffs on French wine and Champagne, with the objective of exerting pressure in relation to the Greenland dossier.
Should this scenario materialize, the impact would extend across the spirits sector. In particular, Remy Cointreau and Moët Hennessy’s shareholders, LVMH and Diageo, would be the most directly affected, given their significant exposure to French wine and Champagne. This exposure is materially higher than that of peers such as Pernod Ricard, whose risk profile is declining in light of its stated intention to divest from this segment.
In conclusion, given the current uncertainty, we recommend avoiding names with high exposure to this dossier, notably Diageo and Rémy Cointreau. Should such tariffs be implemented, it is reasonable to assume that U.S. exposure for these groups could effectively fall to zero.
Expert Opinion:
Obviously, this is bad news for the sector which is extremely sensitive to tariffs. More importantly, there are questions regarding the long-term trend regarding consumption of alcohol. Indeed, the trend seems to be increasing among the millennials regarding lower consumption. Furthermore, the spreading usage of weight loss drugs such as Wegovy or Zepbound seems to have a material impact on the desire to consume alcohol. Our expert is increasingly concerned that despite the massive drop in share price of the likes of Remy, Diageo or Pernod, the fundamental value of those groups will have to be reassessed. He would stay away from those names for the time being.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Subscribe to our blog
