How is AI transforming the drinks industry?

AI is revolutionising the drinks industry by improving supply chain efficiency, enhancing product development, and enabling data-driven marketing strategies. It uses predictive analytics to optimise production processes, reduce waste, and forecast consumer demand. AI also helps in personalising product offerings based on consumer preferences and automating repetitive tasks, leading to increased productivity and operational efficiency.

What are common AI applications in the drinks sector?

Common applications include demand forecasting, inventory management, quality control, and product innovation. AI is used to analyse large datasets to identify trends, optimise production schedules, and develop new products that align with changing consumer tastes. In marketing, AI tools help craft personalised campaigns and predict consumer behaviour.

How can AI support sustainability in the drinks industry?

AI supports sustainability by optimising resource usage, reducing waste, and enhancing supply chain transparency. Through data analysis, AI can help companies monitor energy consumption, improve packaging design, and implement waste-reduction strategies. AI’s ability to streamline operations also minimises the environmental impact of production and logistics.

What are the challenges of AI adoption in the drinks industry?

Challenges include high implementation costs, the need for skilled personnel, and data privacy concerns. Integrating AI with existing systems can be complex, and maintaining data accuracy is crucial for effective AI outputs. Companies must also address ethical considerations related to automated decision-making.

What is the future of AI in the drinks industry?

The future of AI in the drinks industry involves more advanced applications like digital tasting, real-time consumer feedback analysis, and automated quality control. AI will continue to evolve, driving innovations in product development, personalised consumer experiences, and operational efficiency. As technology advances, AI will play a key role in helping brands remain competitive in an increasingly data-driven market.

Just Drinks

China outlines tariffs on EU brandy imports

Starting on Friday (11 October), companies importing products including brandy will have to pay a security deposit on arrival to Chinese customs.

China has imposed “provisional anti-dumping measures” on the imports of brandy from the EU.

Starting on Friday (11 October), companies importing products including brandy will have to pay a security deposit on arrival to Chinese customs authorities.

The deposit amount will be equivalent to tariffs that were recommended in August by China's Ministry of Commerce.

“Today’s decision means that, at an extremely short notice, EU producers will be hit by a significant additional financial burden when exporting EU wine-based and marc-based products to China," Ulrich Adam, the director general for trade group SpiritsEurope, said.

In January, China launched an investigation into claims by the China Liquor Industry Association imports of brandy from the EU were being dumped into the country. It came months after Brussels launched an anti-subsidy investigation into Chinese electric vehicles.

In August, Beijing issued a preliminary finding that accused EU brandy makers of dumping products. At the time, it did not enact any anti-dumping measures but determined the dumping margin ranged from 30.6% to 39%, indicating the level of future tariffs.

On 4 October, the EU approved tariffs of up to 45% on imported China-made electric vehicles.

Following the EU's move to impose those tariffs, the Bureau National Interprofessionnel du Cognac (BNIC) – Cognac’s trade body – said the move reinforced the “imminent threat” of tariffs on brandy. “The French authorities have abandoned us. We do not understand why our sector is being sacrificed in this way,” a spokesperson for the BNIC said at the time. Just Drinks has contacted the BNIC for comment on today's announcement.

In a note to clients this morning, Trevor Stirling, an analyst covering the drinks sector for investment bank Bernstein, said: “The twist is that [the measures] are 'provisional' and implemented through a 'corresponding security deposit', which sounds like it might be rebated if an agreement is eventually reached, rather than a definitive tariff. We believe this is intimately linked to the dispute on EV tariffs and is being used as a negotiation lever. Nevertheless, the threat is real.”

The prospect of tariffs this morning caused the shares of three spirits giants that market Cognac – LVMH, Pernod Ricard and Rémy Cointreau – to slide in early trading.

Shares in Hennessey maker LVMH were down 3.25% at €657.70 at 13:31 CEST. Pernod Ricard, the owner of the Martell brand, saw its shares reach €126.80 by 13:31 CEST, down 3.54%. Shares in Rémy Cointreau had fallen 8.42% on the day to €60.40 by 13:32 CEST.

Just Drinks has approached all three companies for comment.