An unprecedented drop in demand for whiskey, cognac, and tequila has led to the formation of large stocks of unsold alcohol among the world’s leading producers, writes the Financial Times.
This is forcing them to mothball production facilities and cut prices to reduce warehouse stocks.
The combined unsold inventory of the world’s five leading alcohol producers — Diageo, Pernod Ricard, Campari, Brown-Forman, and Remy Cointreau — is about $22 billion, the highest in more than a decade, according to FT calculations based on the companies’ financial reports.
In the case of French cognac producer Remy Cointreau, inventories amount to €1.8 billion, which is almost double its annual revenue and close to the company’s market capitalization.
The accumulation of unsold product inventories by spirits producers increases their debt burden and threatens to lead to a price war, the newspaper notes.
“The growth in inventories is unprecedented,” says Bernstein analyst Trevor Stirling. According to him, unsold alcohol inventories at companies that disclose this information currently exceed the levels seen during the financial crisis.
Inventories began to accumulate after companies responded to a surge in alcohol consumption during the COVID-19 pandemic by sharply increasing production.
“In 2021 and 2022, everyone lost their sense of proportion and decided that such demand would continue forever,” Stirling says.
However, the rapid rise in inflation brought the industry back down to earth. The global decline in disposable income over the past few years has weakened demand for spirits, prompting many companies in the sector to report deteriorating financial performance, staff reshuffles, and shareholder outflows.
Investors are debating the extent to which the decline may be due to deeper societal changes. Some believe that the decline in alcohol consumption is primarily due to the rapid spread of weight loss drugs such as Wegovy and Ozempic, as well as a general increase in people’s awareness of health issues.
France’s Schneider Electric plans to buy back €2.5-3.5 billion worth of its own shares by the end of 2030.
The company expects to increase the profitability of its operations amid the development of the artificial intelligence market and growing demand for electrification solutions.
According to a press release from Schneider Electric, the company aims to increase its adjusted EBITA margin by 250 basis points in 2026-2030. Its previous target was to increase this figure by 50 basis points in 2024-2027.
Schneider Electric will seek to “capitalize on opportunities in the areas of electrification, automation, and digitalization,” said its CEO Olivier Blume, whose words are quoted in a press release published ahead of an investor event.
The company forecasts average annual revenue growth of 7-10% through 2030. In addition, it plans to sell assets with proceeds of €1 billion to €1.5 billion during this period.
Schneider Electric is a manufacturer of distribution and protection equipment, automation devices for the energy sector, and other equipment.
Its solutions play an important role in ensuring the operation of data centers.
Schneider Electric shares added 2.5% in price on Thursday trading in Paris. Since the beginning of this year, their value has fallen by less than 1%.
Zinc prices are climbing on worries about a global shortage of the metal, bouncing back from earlier losses and hitting their highest level since last December.
Zinc rose 0.6% to $3,026 per ton during trading in London on Tuesday.
According to the International Lead and Zinc Study Group (ILZSG), zinc production in the first half of 2025 increased by 6.3% year-on-year.
However, due to problems at processing plants, refined zinc output fell by more than 2%.
As a result, zinc stocks on the London Metal Exchange fell to 30,000 tons, although at the beginning of the year they reached 171,500 tons, according to Trading Economics.
