Pernod: ‘China becoming a normal emerging market’

Drinks giant Pernod Ricard has predicted an “improvement” in the currently struggling Chinese market next year and is delving into its wider portfolio to attract consumers.

China-flag-1024x768-700x525According to Bloomberg, chief financial officer, Gilles Bogaert, said he is sure gains will be made in China over the next two to three years, helped along by the cutting of overhead expenses that were announced back in February.

He told a news conference in Ireland that he expects “high” single-digit growth soon with only the exact timing being in doubt.

As reported by the drinks business last year, Pernod Ricard was badly hit by the slowdown in Chinese demand for, above all things, Cognac, with overall sales falling 18% in the first half of last year and overall profit dropping by 7%.

Early in February of this year, as db again reported, it cut its yearly forecast to 1%-3% growth only.

Pernod said yesterday it would begin to look into its portfolio of less premium products such as Martell Cognac, Ballantine’s and even Absolut to bring back Chinese drinkers.

“There is a big structural shift that happened in China that started a couple of years ago,” said Alexandre Ricard, who is soon to become the company’s CEO.

“China is becoming a normal emerging market.”

One Response to “Pernod: ‘China becoming a normal emerging market’”

  1. Very informative post.Really looking forward to read more. Cool.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Champagne Masters 2019

Deadline : 27th September 2019

The Global Grenache Masters 2019

Deadline : 2nd October 2019

Click to view more

The Prosecco Masters 2019

View Results

The Global Rosé Masters 2019

View Results

Click to view more