Moody’s Considers Coronavirus Outbreak to Be a Threat to Alcohol Producers
OREANDA-NEWS. Experts of Moody’s Corporation warn that the coronavirus epidemic in China will adversely affect the international market of alcohol production.
China is traditionally considered to be one of the largest consumers of alcohol drinks; according to Euromonitor, it provides 26 % of total world consumption. The French manufacturer Remy Cointreau is most likely to suffer: Chinese buyers account for 20 % of the company’s revenue. There may be negative consequences for another French company, Pernod Ricard, as well as for British manufacturer Diageo.Analysts consider that, if the situation with the coronavirus epidemic is not resolved in the near future, industry losses can be significant, as it was in the case of the severe acute respiratory syndrome outbreak in 2003.