Pernod Ricard's price increases on its Martell cognac, whisky brands will be absorbed by increasingly affluent Chinese customers, won't affect strong Asian sales growth, says head of company's Asian division
March 20, 2012
– The head of Pernod Ricard’s Asian division, Pierre Coppere, said the company’s price increases on its Martell cognac and whisky brands would be absorbed by increasingly affluent Chinese customers and not affect strong Asian sales growth, Reuters reported March 20.
Despite raising prices last month, Coppere expects double-digit growth in Chinese sales volumes for Martell this year.
Pernod raised its annual profit target last month, betting that Western Europe’s softer economic climate would be offset by strong Asian demand and a recovering U.S. market.
Asia accounted for 37% of Pernod’s group sales and 38% of current operating profit in the first half of the company’s 2011-12 fiscal year. Super premium brands, meanwhile, accounted for 70% of sales in the region.
The primary source of this article is Reuters, London, England, on March 20, 2012.