Chinese New Year demand key for Pernod Ricard

By Dominique Vidalon and Pascale Denis PARIS (Reuters) - French drinks group Pernod Ricard expects demand in China to improve gradually during its current fiscal year, with a return to positive sales growth hinging mostly on demand for premium tipples during the Chinese New Year in February, its deputy chief executive said on Thursday. "The Chinese New Year will be the judge," Alexandre Ricard told Reuters in a phone interview, when asked if China would return to positive sales growth during fiscal year ending June 30, 2015. The world's second-biggest spirits group behind Britain's Diageo Plc reported earlier a 9 percent decline in like for like sales in China during its first quarter 2014/15. This was a sharp improvement from a 38-percent sales slump in the fourth quarter, with volumes already back to positive growth, Ricard said. Pernod makes 12 percent of its sales in China, its largest market after the United States. Like rivals including smaller peer Remy Cointreau , Pernod has been hurt by a government clampdown on luxury gifts in China, in addition to the slowdown in economic growth there. (Reporting by Dominique Vidalon; Editing by Nick Vinocur)