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Pernod Ricard Not Planning Acquisitions - CEO

Source: Reuters
05/11/2008

PARIS, Nov 4 - French drinks group Pernod Ricard has no plans to take advantage of acquisition opportunities that may arise through sector consolidation, incoming CEO Pierre Pringuet told Le Figaro.

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Pringuet was asked if the company, the world number two alcoholic drinks maker after Diageo Plc, would go back on its commitment not to make any acquisitions before 2010.

"In theory, no," he said.

"The group has been ambitious but always reasonable. It will never put its financial solidity at risk."

Pringuet, who is due to take over from Patrick Ricard as CEO after a board meeting on Wednesday, also said the group would not sell its Ricard brand of aniseed flavour "pastis" liqueur, popular in France.

"It represents 40 percent of our business in France and is an important source of cash-flow," he said, adding that selling the brand, whose sales have declined in recent years, would benefit a competitor.

"Ricard is a symbolic local brand, like Ararat in Russia or Becherovka in the Czech Republic," Pringuet said.

Asked if he had been tasked with finding his own successor among the Ricard family, Pringuet said the family "remains inextricably linked to the strong management of the group. I'm 58 years old, and I have plenty of time ahead of me."

Pringuet said the group had noted sales declining in bars, nightclubs and restaurants in France, following the introduction of a smoking ban.

In compensation, sales in specialist wine shops, supermarkets and duty free shops were growing, he said.



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