Remy Martin in low spirits as crackdown drains brandy sales

 Alessio Vaccari, chief executive officer of Beijing Casalaccio International Trade Co Ltd, which imports high-end wines and olive oil from Italy, said his company, which used to have lots of orders from State-owned companies and local governments, is now suffering profit losses because of the government's campaign on luxury spending.

"The old glory days have long gone when people with a budget for purchasing didn't care about the prices and only wanted the best wines," he said. "Now, the wine market is tough, and we have to be very competitive in a sector that is already very segmented with lots of foreign brands."

Chinese liquor producer Sichuan Swellfun Co Ltd also reported on Monday that it expects a net loss of 124 million yuan ($20.5 million) to 160 million yuan last year, the first time it has suffered no profit in a decade.

The Sichuan-based company, controlled by Diageo Highland Holding BV with nearly 40 percent of its shares, suffered a heavy blow amid falling sales of high-end liquor, used for lavish Chinese banquets and gift-giving.

Diageo Highland is the world's largest spirit manufacturer in the United Kingdom.

The company said the sharp decline was mainly caused by the significant slide in sales income in the liquor industry, higher promotional spending and returned inventories.

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