Spirits shares fluctuate post-Brexit vote
Source: The Spirits Business
by Kristiane Sherry
27th June, 2016
Major drinks suppliers have experienced volatility in trading following the UK’s surprise ‘Brexit’ vote to leave the European Union, the result of a referendum held on 23 June.
Following news of the ‘out’ vote, global markets collectively lost US$2 trillion in value on Friday 24 June, according to Standard & Poor’s.
Drinks companies were unanimously caught up in the fallout, with share price dips registered across the board.
Pernod Ricard, thought to be particularly exposed to the effects of Brexit due to its extensive Scotch portfolio, saw immediate -6.2% losses on the Paris stock exchange, although it has since recouped almost all ground lost.
US-based Brown-Forman, which recently acquired Scotch producer the BenRiach Distillery Company, witnessed initial 2.1% losses on the New York Stock Exchange (NYSE), with further 1.98% declines following.
Constellation Brands, similarly listed on the NYSE, saw steep 3.84% declines on Thursday and has witnessed volatility since. At the time of writing it had recouped 1.33% but trading is volatile.
Stock Spirits, listed on the London Stock Exchange, experienced a 5.52% contraction in the immediate Brexit aftermath. While trading has since picked up, it has yet to claw back all losses.
Milan-listed Davide Campari has likewise picked up following initial losses. After a 4.43% contraction on Thursday, trading, though volatile, is up 2.32% from the post-Brexit low.
Two companies have bucked the declines: Marie Brizard Wine & Spirits (MBWS) and Diageo. After initially witnessing a huge 10% fall in value after the Brexit vote was announced, MBWS shares have since rallied almost 11.6%, making up all ground lost.
Diageo is one of the biggest winners on the London-based FTSE 100 today. Despite almost 2% value losses on 24 June, the share price has since rallied and is now trading around 5% higher than it was pre-Brexit.
Representatives of the international drinks trade have spoken of “serious issues” that will require “urgent attention” to support producers in the wake of the Brexit vote.