No Big Deals On Horizon For Pernod, Says PringuetMay 31, 2012
Pernod Ricard CEO Pierre Pringuet says the French drinks giant will continue to avoid large acquisitions for the foreseeable future, but is open to smaller bolt-on deals in the U.S. and China. Pringuet told the Wall Street Journal the company could pursue a deal in the local spirits market in China, a segment where it’s not present. Pernod’s top global competitor Diageo earlier this year made a move to acquire the premium ShuiJingFang brand in the local baijiu segment, which accounts for around 500 million cases worth $39 billion annually, or about half of China’s total drinks market.
Pringuet added that smaller acquisitions were also a possibility in the U.S., acknowledging that even after its 2008 purchase of Absolut vodka, Pernod’s U.S. share (at about 15% by value in the premium spirits category against Diageo’s 30%) remains relatively underweight compared with its presence elsewhere around the globe.
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