(Bloomberg) -- For American drinkers demanding more locally made liquor, one potential silver lining of the trade war is that some Davide Campari-Milano SpA spirits, including Aperol, might soon be produced closer to home.
“If the tariffs are really high, then we might have to look at delocalizing production and going elsewhere,” Campari CEO Bob Kunze-Concewitz said in an interview with Bloomberg TV. If the tariffs are low, the Milan-based company will pass that cost on to drinkers through price increases, he said.
Campari shares fell as much as 2.2% in Milan, where they've gained about 11% this year.
The World Trade Organization is expected on Wednesday to circulate its arbitration decision in a U.S.-European Union dispute over state aid to Airbus SE, which could result in the U.S. imposing new levies.
It would take the distiller between three and six months to begin producing brands such as Aperol or Campari elsewhere, Kunze-Concewitz said. The company already manufactures spirits such as Wild Turkey bourbon in the U.S. The trade war is slowing economic growth as investment decisions are postponed and consumption slows, he said.
Campari has also stockpiled three to six months worth of products in the U.K. in preparation for Brexit, the CEO said.
To contact the reporters on this story: Thomas Buckley in London at tbuckley25@bloomberg.net;Francine Lacqua in London at flacqua@bloomberg.net
To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Anne Pollak
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