Campari, the name synonymous with Italian Spritz, collapsed on the stock market this morning along with other companies in the sector in the wake of the launch by the China of a anti-dumping investigation on some liqueurs coming from the European Union.
In the late morning, the Davide Campari-Milano NV stock was trading at 9,834 euros, down by -2.15%, the worst stock in the entire FTSE MIB. The greatest expectations see an extension of the decline towards the support area estimated at 9,77 and subsequently at 9,7. Resistance at 9,94. But the Chinese move is impacting the entire European spirits sector: Pernod Ricard is at a loss on the Paris Stock Exchange of 5,44%. Thud also for Remy Cointreau which collapsed by 10,89%, the worst of the STOXX 50 -0,85% e Diageo in London.
The ministry's investigation began at the request of the China Wine Industry Association
The investigation of Chinese Ministry of Commerce began, according to what Bloomberg reports, after receiving, last November 30, the same ministry said, a request for an anti-dumping investigation from the China Wine Industry Association, on behalf of the national brandy industry, regarding theimport of alcohol from the EU.
The documents provided have been sufficiently considered gravi to lead to the opening of an investigation for dumping for the period from 2022 October 30 to 2023 September 2019, and an investigation for "industrial damage" from 30 January 2023 to 200 September 200. The scope of application covers "the imported spirits based on wine distilled in containers of less than XNUMX liters originating in the EU”. The press release from the Chinese Ministry of Commerce specifically mentions "brandy obtained from the distillation of grape wine in containers with a capacity of less than XNUMX litres".
Interested parties have 20 days to register for the investigation and produce relevant information on the identification, quantity and volume of products exported or imported into China. The investigation begins on 5 January 2024 and normally ends on 5 January 2025. It may be extended by six months in particular circumstances. The names of the companies involved were not disclosed.
Deutsche Bank cuts target price
Also weighing on the Campari title is the target price cut by Deutsche Bank (at 11 euros from 12,6 euros per share), in view of the 2023 annual results which will be released on 27 February. By maintaining a Buy recommendation, the broker expects the group to renew confidence in its ability to grow faster than its main reference markets, with a further improvement in margins in sight for this year.
