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PERNOD LOBBIES AGAINST TRUMP IMPORT TAX
Feb 14, 2017
(TDB) - The global spirits groups have all emphasised in their recent results the importance of the surging US market. They continue to focus on it because not only is it their largest but it is also the most profitable with the biggest margins.
That is why they have joined forces with American retailers to lobby the Trump White House not to impose import tariffs of up to 20% on non-US produced spirits as part of his “America First” philosophy.
In London yesterday, Alexander Ricard, the chairman and chief executive of Pernod Ricard, said: “You cannot produce Scotch in the US like you cannot produce Bourbon in Scotland. Cognac is French and Irish whiskey is Irish. Spirits is a very specific industry based on appellations. We cannot move production [from many locations]. So [if it comes in] this will be a tax we will pass on to consumers. The retailers say it will be a new consumer tax and we agree with them. I don’t think it is fair to the American consumer, so…go figure… but we will see what happens.”
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