By Ruth Bender
PARIS--The slight slowdown of growth in China shouldn't last
long and consumers should be back to spending heavily again in the
first half of 2013, according to French drinks group Pernod Ricard
SA (RI.FR).
"We see this as a temporary slowdown, in part linked to the
political transition and lower GDP numbers this year," Chief
Financial Officer Gilles Bogaert said in an interview.
Mr. Bogaert said he expects to see stronger growth again in the
second half of the group's financial year ending June 30, 2013.
There have been concerns about slowing growth in Asia, which has
become a key growth engine for global drinks companies like Pernod
Ricard.
Last week, Diageo PLC (DGE.LN), the world's largest spirits
group by revenue, said first-quarter organic sales in the
Asian-Pacific region rose only 2% compared with 14% last year, hit
by weakness in South Korea and India. And Remy Cointreau SA
(RCO.FR) said it detected hesitation from consumers in Asian
markets such as China and Vietnam.
Mr. Bogaert said he was still confident about long-term growth
in China and other Asian markets.
He also said Pernod-Ricard doesn't intend to cut back on
marketing spending this year, despite the tougher economic
backdrop. In the 2011-12 financial year, the maker of Havana Club
rum, Absolut vodka and Chivas Regal whisky spent around 1.6 billion
euros ($2.07 billion), or 19.1% of sales.
-Write to Ruth Bender at ruth.bender@dowjones.com
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