LONDON, July 24 (Reuters) - Beijing has given no
official timeframe for a decision in its anti-dumping
investigation on European Union brandy, Remy Cointreau's chief
financial officer said on Wednesday, after top cognac makers
attended a hearing on the issue last week.
China announced a probe into whether EU brandy makers were
selling their product in China at below-market rates in January,
weighing on sentiment for cognac producers like Remy as
investors fear it could result in the imposition of tariffs.
Representatives of the industry, which say the probe is
linked to a broader trade row rather than the liquor market,
attended a hearing in Beijing last week - their first chance to
defend themselves against the allegations in person.
Remy's CFO Luca Marotta told analysts on a first-quarter
sales call that China's Commerce Ministry had not given any
official communication regarding the timing of its decision
after the hearing.
The company makes some 70% of its sales from cognac, with
China one of its largest markets for the brandy, and its most
profitable.
Asked whether the group was taking any steps to mitigate the
impact of potential tariffs, such as shipping product to China
ahead of time, Marotta said it was staying calm and continuing
as normal.
"So far the investigation didn't affect consumer tastes or
the essence of the business, so we are not changing the
operation to try and anticipate, or offset, in an extraordinary
way, the... impact," he said.
He added that it was also not possible to say whether Remy
would look to pass the costs of higher tariffs onto consumers,
only that the company was prepared to react if they were
imposed.
The French cognac industry makes up almost all of China's EU
brandy imports. Other affected players include Pernod Ricard
and LVMH.