FOREIGN MARKETS A BOON FOR PERNOD RICARD

If the Asian market is any indication, things could be looking up for the spirits industry. Drinks company Pernod Ricard has raised its forecast for full-year earnings after reporting better-than-expected sales in its third quarter, thanks to strong demand for premium Cognac in China and an improvement in US demand. The company said it expected profit from recurring operations to rise by 3 percent in organic terms in the financial year ending in June, from its previous forecast of 1 to 3 percent. Pierre Pringuet, chief executive, said the Paris-based group would step up its spending on advertising and promotion. Sales rose by 14 percent in the three months to the end of March to €1.5 billion (US$2 billion), 6 percent higher than expectations. The outperformance was driven by strong sales in Asia and improvement in markets such as Russia and the US.