PERNOD RICARD’S SALES UP 21% IN CHINA 19% IN INDIA
By Susan Lewis
French spirits and wine giant Pernod Ricard’s sales in China was up 21% in the first three quarters of the financial year, despite signs of a slowing Chinese economy due to the trade war with USA, while sales in India were up 19% in the same period.
In a Q & A conference with analysts, Pernod Ricard’s Asia CEO Philippe Guettat was bullish on the company’s performance in the Asian region.
Sales in Korea were also up a whopping 21%, Hong Kong and Macau up 17%, Japan up 10% while Taiwan and Southeast Asia both up 8%.
The figures for the nine months to the end of March are encouraging, they are better than a year earlier when the global economic outlook appeared to be much brighter than this year. Sales growth in China in the same period a year earlier was 19% (2 percent point lower) while in Asia as a whole it was 11% (4 percent point lower).
Mr Guettat predicted that China will remain a key driver of growth due to the addition of 200 million middle class and affluent consumers to the market over the next six years.
When asked if the implementation of a social credit scheme in China will affect Pernod Ricard’s performance, Guettat said the system would not be linked to alcohol consumption or purchase to the best of their knowledge.
He said alcohol is embedded in Chinese culture so they would not expect any impact from the social credit scheme on their business.
The social credit scheme, which gives citizens a unified score based on their behaviours, will become mandatory in China in 2020, it is currently being tested in pilot schemes being rolled out through private financial companies.
Guettat also said the company’s performance in Thailand was dragged down by its blended Scotch brand 100 Pipers, this is despite that other international brands including Irish whisky Jameson have performed well in Thailand in the same period.
(the writer can be contacted at: SusanLewis@thewinechronicle.com)
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