Pernod confident on Allied Domecq

PERNOD Ricard today declared it was confident it would emerge triumphant in the current 'phoney war' over £7.4bn Allied Domecq.

Since the French group lodged its offer, Constellation Brands and Brown-Forman of the US have said they are considering a joint offer, while Diageo is known to have appointed Lehman Brothers to consider its options.

But Pernod managing director Richard Burrows said: 'We have had our offer accepted by the board and that puts us in a very strong position. We are offering a very significant premium and are confident of having this deal completed by the end of July.'

He was speaking as Pernod reported strong sales across the world for its first quarter ending 31 March.

Its Chivas and Martell brands had a storming start to the year in China, where sales growth was up 18.5% thanks to the Chinese New Year celebrations. Martell cognac was also strong in the region.

Pernod is pushing its sales upmarket, selling more of its quality spirits brands, such as Martell Cordon Bleu and Jameson Irish whiskey. But its wines portfolio, which it is keen to merge with Allied's large premium estate, also saw strong growth, led by Jacob's Creek, where global sales rose 16% during the quarter.

Overall net sales, excluding duties and taxes totalled e753m against e704m a year earlier.

Sales in the US were skewed downwards by falling sales of Seagram's gin. Pernod pushed through significant price rises a year earlier, making the sales comparisons tough to beat.