Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-10-13
The US spirits lobby DISCUS is urging President Trump to lift the remaining 10% tariff on French cognac and liqueurs, a move that would benefit Pernod Ricard and LVMH’s spirits division. Meanwhile, LVMH’s strong Q3 performance for its spirits portfolio has boosted investor sentiment across the sector, driving gains for Pernod Ricard and Rémy Cointreau. Heineken continues its share buyback program as analysts anticipate a mixed Q3 performance with growth in emerging markets offsetting European weakness.
Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-10-13
DISCUS Urges Removal of 10% Cognac Tariff
On October 12, 2026, the Distilled Spirits Council of the United States (DISCUS) formally requested that the Trump administration eliminate the remaining 10% tariff on European cognac and liqueurs. This follows recent tariff relief secured for Scotch and Irish whiskey, signaling a broader push to reduce costs for US importers, bars, and retailers. The move is significant for Pernod Ricard and LVMH, as it could alleviate pricing pressures in the critical US market
LVMH Spirits Growth Lifts Sector Sentiment
LVMH reported 4% organic growth for its spirits portfolio in the first nine months of 2026, a performance that positively impacted peer stocks. Following this announcement on October 13, shares in Pernod Ricard and Rémy Cointreau rose, as investors interpreted the data as a sign that high-end spirits demand remains resilient despite broader economic uncertainty. Analysts from Citi noted an improving trajectory for Rémy Cointreau, supported by easing destocking pressures
Heineken Share Buybacks Continue Amid Mixed Q3 Expectations
Heineken N.V. reported repurchasing 8.5 million shares as part of its €750 million buyback program, with 174,000 shares bought back in the week ending October 9, 2026. Deutsche Bank analyst Mitch Collett expects a "mixed" third quarter for the brewer, forecasting volume growth of 10% in Vietnam and 5% in India, which may help offset softer demand in Europe. The company's ability to maintain shareholder returns while navigating regional disparities is being closely watched by investors
Local view
France: French financial media highlighted the positive spillover effect from LVMH's results, with Investir noting that Pernod Ricard helped prop up the CAC 40 index while luxury peers like Hermès and Kering struggled. The narrative focuses on the "cross-reading" of LVMH's data as a proxy for the broader premium spirits health
Netherlands: Dutch outlets like De Aandeelhouder are focusing on the divergence between Heineken's global volume recovery and the continued contraction of the domestic Dutch beer market due to rising excise duties. Analysts are debating whether the strong emerging market performance can sustain the stock's valuation if European volumes remain flat
Context & numbers
- Tariff Status: A 10% tariff remains on European cognac and liqueurs imported into the US, while Scotch and Irish whiskey have recently received relief
- LVMH Performance: +4% organic growth in the spirits division for the first nine months of 2026
- Heineken Volumes: Forecasted +10% volume growth in Vietnam and +5% in India for Q3 2026 by Deutsche Bank
- Share Prices: Pernod Ricard closed at approximately EUR 62.20 on October 12, 2026, after a slight after-hours dip of 0.70%
On the radar
- Trump Administration Response: Watch for any official White House or USTR statement regarding DISCUS's request to drop the cognac tariff, which would be a major catalyst for Pernod Ricard and Rémy Cointreau.
- Heineken Q3 Results: The company is expected to release its third-quarter update soon; the focus will be on whether the strong Asian growth offsets the "mixed" European outlook predicted by Deutsche Bank.
- AB InBev RBC Report: Recent commentary from RBC Capital Markets highlights AB InBev's dominance in emerging markets and currency tailwinds, suggesting resilience despite previous Q2 misses
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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